Bank Statement Loans
Bank Statement Loans
A bank statement loan is often an excellent option for qualified self-employed borrowers. However, self-employed borrowers must choose the best loan product to help fulfill their mortgage needs.
What are Bank Statement Loans?
Bank statement loans are a variety of non-qualified mortgage loans that let you qualify based on bank statements instead of tax returns. The lender will require the borrowers to provide a certain number of months' worth of bank statements to demonstrate their ability to repay the loan. This allows self-employed borrowers to access home loans, even if their taxes don't signify their total income. Bank statement mortgage programs are often a good option for self-employed individuals, business owners, and retirees who need an alternative income verification option.
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How do Bank Statement Loans work?
The application procedure for a bank statement loan varies from a conventional mortgage. When you apply, you'll need to provide the lender bank statements from the past year or two instead of the past two or three months, as well as information about your business and expenses. In addition, you'll need to provide statements if you have personal and business accounts.
The type of business, the number of employees, and the business's physical location are some of the questions that bank statement lenders want to know to decide the expense factor.
Depending on your credit score, you might also need to make a bigger down payment. Generally, you may be eligible for a bank statement loan with a score as low as 620, but a 700 or higher gets you a better rate and terms.
Types of Bank Statement Loans
Additionally, some lenders may require your business bank statements instead of personal bank statements. Therefore, you may still be able to use your statements with those lenders if you don't have business bank statements. However, they might use a smaller percentage of your deposits for qualifying purposes.
In some situations, borrowers also may be required to provide a profit and loss statement (P&L) for their business prepared by a tax professional.
Guidant Mortgage Group
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.
PHONE
(864) 275-0941
ADDRESS
Simpsonville, SC 29681
The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.