What are bank statement loans?
It's common for borrowers to verify their income using tax returns and W-2s. But not all borrowers can prove their income and assets this way. A bank statement loan allows self-employed borrowers, small business owners, entrepreneurs, and freelancers to obtain a mortgage without traditional documentation. And believe it or not, the application process is easier than you think.
Self-employed mortgage requirements
- Credit scores of 600+
- Maximum debt-to-income ratio (DTI) of 50%
- Employment verification from clients or a CPA
- Two years of personal income tax returns
- Two years of business tax returns including schedules K-1, 1120, and 1120S
- Business license
- Bank statements showing you have access to sufficient funds
- Balance sheet
- Year-to-date profit and loss statement (P&L)
Bank statement loan benefits
- Finance owner-occupied homes, second homes & investment properties
- Borrow up to 80% of the home's value; up to 90% with proper reserves and credit
- No tax returns required
- No paying private mortgage insurance (PMI)
Here's how it works:
- Call, text, or chat with a salary-based mortgage consultant
- Must be in business for two or more years
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Provide documentation such as:
- Your business license
- 12 months of personal and 24 months of business bank statements
- Expense ratio
- Signed CPA letter stating you are still in business
- Receive your custom, low rate home loan
Get started with a bank statement mortgage loan
Affordable loans with easy qualifications and flexible down payments are possible. Let our self-employed mortgage guide teach you more about what to expect.
Or better yet, contact one of our salary-based mortgage consultants to learn more about custom loan options that make sense for you. We're even open nights and weekends to fit your schedule.
Call (800) 910-4055 or schedule an appointment to get started.