A Bank Statement loan is a home loan program designed for self-employed/ business owners. Some lenders allow w2 borrowers to qualify. For qualification purposes, the lender uses the deposits made into the business owner’s account as the source of income for qualification purposes, instead of using the applicant’s tax returns
The primary difference between these loan types is that the applicant qualifies based on the deposit income in the bank statements, rather than the applicant’s tax returns.
A bank statement mortgage is a type of mortgage loan that is designed for self-employed individuals or small business owners who have difficulty qualifying for a traditional mortgage due to their lack of regular income documentation. Instead of relying on W-2s or tax returns, the lender uses the borrower's bank statements to verify their income and ability to repay the loan.
To qualify for a bank statement mortgage, borrowers typically need to provide several months' worth of bank statements that show consistent cash flow and a steady source of income. The lender may also require other documentation, such as business licenses or contracts, to verify the borrower's income and employment status.
The interest rates and fees for bank statement mortgages may be higher than traditional mortgages, as they are considered higher risk loans. However, they can be a good option for self-employed individuals who have a fluctuating income or irregular cash flow.
It's important to note that bank statement mortgages are not widely available and may only be offered by select lenders. and work with a reputable lender who has experience working with self-employed borrowers.
We appreciate your interest in our mortgage services. To help us better understand your unique mortgage needs and provide you with tailored assistance, we kindly request that you send us a brief message outlining what you are looking for in a mortgage. Please include your name, email, and phone number so that our team can reach out to you promptly. Whether you're seeking information on interest rates, down payment options, or any other mortgage-related inquiries, your message will assist us in providing you with the most relevant and helpful guidance. We look forward to hearing from you and assisting you on your journey to securing the ideal mortgage for your goals.
I represent clients who authorize me to do so. I do not work for or represent the interest of any mortgage lender or other duly authorized entity to whom I may submit a mortgage application on behalf of a Client. My services are provided in a Mortgage Broker capacity and I am not authorized to approve or deny a mortgage loan request. NMLS 1691763 / NMLS 1322774