Ideal for self-employed borrowers. We can help review your client’s bank statements, analyze deposits and calculate income which saves you time and helps you to close more loans.
Use personal or business bank statements
Less than 30 days turn-time
As little as 10% down
Credit score as low as 620
Loans up to $3 million
Up to 50% DTI
What is a Bank Statement Loan?
Bank statement loans have taken over the traditional stated income loans as an alternative for borrowers who are unable to verify their income in the traditional way by providing the previous two years tax returns, W2s and pay stubs. These are non-QM loans, nontraditional loans or expanded criteria loans that allow other forms of documentation to prove the ability to repay. Just as it sounds, a bank statement loan allows the borrower to verify his or her income with bank statements.
Bank statement loans are popular with the following types of borrowers:
Business owners
Freelance employees
Consultants
Contract workers
Independent contractors
Sole proprietors
Gig economy workers
Realtors
Entrepreneurs
Retirees
These type of loans have provided a solution to borrowers’ challenge of using the net income claimed on their tax returns rather than the true net income that they make. This makes many borrowers ineligible for a loan. To apply for a bank statement loan, the self-employed borrower can provide the mortgage lender with as little as 12 months of bank statements which show regular deposits. This allows the lender to see how much you can afford to borrow. The lender would then verify your bank statements by calling your bank or by filling out a verification of deposit (VOD) request and mailing or faxing it to your bank. If you are using your business bank statements to qualify the lender will still need to see the expenses you incur as a result of owning a business but will not penalize you for expenses that you have written off on your tax returns.
Find Out If You Qualify for a Bank Statement Loan
If you want to learn more about bank statement loans, reach out to us. We can help you find out if you qualify for a bank statement loan. If you qualify, we can guide you through the loan process. If for some reason you don’t qualify, we can provide you with alternative options that you may find valuable instead.