Bank Statement Loans
A Valuable loan Option For Self-employed Borrowers
If you are self-employed, it can be difficult to show enough income on your taxes to qualify for a mortgage. It can also be a hassle to gather the necessary income docs needed to apply.
That’s why working with an independent mortgage broker like us can help. We offer bank statement loans, allowing qualified borrowers to provide their personal or business bank statements, instead of tax returns, to qualify for a loan up to $3M. Bank Statement Loans enable borrowers to go up to 85% LTV without having to pay MI, allowing lower monthly payments.
Bank Statement Loans
What is a Bank Statement Loan?
A bank statement loan, also known as a self-employed mortgage or alternative documentation loan, is a type of home loan designed for self-employed individuals who may have difficulty providing traditional income verification documents, such as pay stubs and tax returns, that are typically required for standard mortgage applications.
What do I need to start my Bank Statement Loan Process?
Instead of providing tax returns and W-2s, self-employed borrowers are required to submit their recent bank statements. These bank statements are used to demonstrate their cash flow and income over a specified period, usually 12 to 24 months.
Lenders analyze the bank statements to calculate the borrower's average monthly income. They may consider deposits made into the account, excluding transfers between accounts, to estimate the borrower's ability to repay the loan.
Your Mortgage Broker will ask for your social security number and permission to pull your credit report.
What are the benefits of a Bank Statement Loan?
|||Loan amounts up to $3,000,000|
|||1-4 Units eligible|
|||Up to 85% LTV and no PMI (Mortgage Insurance) required|
|||6 months reserves required|
|||Minimum of 12 months consecutive bank statements required|
Still have questions on the Bank Statement Loan Process?
If you still have questions on the Bank Statement Process, please contact New Dwelling Mortgage at 1-844-317-3050, Monday through Friday from 9:00 am to 5:00 pm EST.