Bank Statement Loan

A bank statement loan is a type of non-qualified mortgage loan. It is a great option for individuals to apply for a mortgage without having to prove their income via pay stubs, W-2s or tax returns. Bank statement loans can be useful for self-employed, independent contractors and other borrowers with inconsistent incomes. However, since a bank statement loan is a type of non-qualified mortgage, borrower may end up paying a higher interest rate and making a larger down payment.

Today, millions of people work for themselves as self-employed professionals, contract workers, entrepreneurs and/or small business owners. Bank statement loans are an excellent alternative for such individuals. They use a borrowers' business or personal bank account statements instead of a W2 to validate the borrower's income and determine their ability to repay the mortgage.

How do bank statement loans work?

Bank statement loans process may vary a little from lender to lender, but generally this is what they need:

• Past bank statements: Lender may ask you to provide 12-24 months of your past bank statements.
• Both business and personal bank accounts work.
• Deposits must be sourced
• If using business bank account, eligible deposits are those that can be sourced as business income.

Types of bank statement loans

• Bank statement purchase loan
• Bank statement refinance loan
• Bank statement home equity loan

Who can benefit from a bank statement mortgage?

• Self-employed individuals
• Seasonal workers
• Independent contractor
• Sole proprietor
• Freelancer
• Consultants
• Entrepreneurs
• Realtors

What are the requirements for a bank statement loan?

• At least two years of self-employment.
• 12 to 24 months of consecutive bank statements from the same account. Both business and personal bank accounts work.
• Up to 90% max LTV.
• At least 10% down payment required with mortgage insurance.
• A credit score higher than conventional mortgages is often required.
• A debt-to-income ratio of 45% or lower is often required.

Our Non-QM bank statement loan program is an excellent solution. At Premium Mortgage Demo, our team review both the type of small business and the flow of funds into and out of the potential borrower's bank account over a set period of time, typically 12 to 24 months. This helps us determine the borrower's ability to repay the loan and set the best possible terms of the loan.

Call our loan advisor at 877 123 XXXX or click the button below to request a free consultation with one of our mortgage advisors.

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