Bank statement loans are tailored for self-employed borrowers, entrepreneurs, and freelancers who lack traditional income documentation like tax returns or W-2s. Instead, these loans use your bank statements to verify income, offering a flexible path to homeownership.
With competitive rates and personalized options, bank statement loans cater to fluctuating incomes, making it easier for business owners to qualify. While they may require a higher down payment and credit score, they provide the freedom to secure a home without traditional mortgage constraints.
Choose a bank statement loan to align your mortgage with your business cash flow and entrepreneurial lifestyle.
Use your bank statements instead of traditional income documents, providing a flexible and straightforward way to qualify for a mortgage based on your actual income flow.
Bank statement loans offer various term options, including fixed and adjustable rates, catering to the unique financial needs of self-employed individuals and entrepreneurs.
Access larger loan amounts that accommodate the financial needs of business owners, allowing you to purchase your ideal home without traditional loan limitations.
Bank statement loans are designed to meet the needs of self-employed borrowers who might not qualify for conventional loans. With clear guidelines and no hidden fees, these loans provide a transparent and reliable mortgage solution that fits your financial profile. Enjoy the freedom of securing a loan that works with your business income and lifestyle.
A bank statement loan is a type of mortgage designed for self-employed individuals, entrepreneurs, freelancers, and small business owners who may not have traditional income documentation like W-2s or tax returns. Instead, lenders use your personal or business bank statements to verify your income, making it easier for those with non-traditional income sources to qualify for a home loan.
To qualify for a bank statement loan, you typically need to provide 12 to 24 months of personal or business bank statements to prove your income. Lenders will look at your deposit history to assess your income consistency. You’ll also need a decent credit score (usually 620 or higher), a debt-to-income ratio below 50%, and a down payment of around 10-20%, depending on the lender.
Most bank statement loans do not require private mortgage insurance (PMI), even with a down payment of less than 20%. This can significantly reduce your monthly payments compared to conventional loans, making these loans more affordable for self-employed borrowers.
Interest rates on bank statement loans are generally higher than conventional loans due to the increased risk perceived by lenders. Rates can vary based on your credit score, down payment amount, and overall financial profile. However, many borrowers find the flexibility and accessibility of bank statement loans worth the slightly higher rates.
Yes, bank statement loans can be used for refinancing an existing mortgage. This option is particularly useful for self-employed individuals who may have experienced a change in income or who want to take advantage of their current financial situation to secure better terms. You can use your recent bank statements to qualify, making it easier to adjust your mortgage to fit your current needs.
