Bank Statement Loans

Bank Statement Loans offer alternative ways for self-employed borrowers to document their income.

If you’re a self-employed borrower or someone with non-traditional income sources, you may have experienced challenges in obtaining a mortgage. However, with a bank statement loan, you may be able to secure the financing you need to purchase a home.

What is a bank statement loan?

A bank statement loan is a mortgage that is underwritten based on your personal or business bank statements, rather than your tax returns or W-2s. This type of loan is also known as a non-QM loan (non-qualified mortgage) because it doesn’t meet the eligibility requirements of Fannie Mae or Freddie Mac.

How do bank statement loans work?

With a bank statement loan, lenders will typically review your bank statements from the past 12 or 24 months to determine your income and ability to repay the loan. Because you won’t be providing traditional income documentation, such as tax returns, the lender may require a higher down payment and/or charge a higher interest rate to offset the risk.

Benefits of a bank statement loan

Bank statement loans offer several benefits over traditional mortgages, including:

  • Easier qualification: Because bank statement loans don’t rely on traditional income documentation, they may be easier to qualify for if you’re self-employed, have irregular income, or have a high debt-to-income ratio.
  • Flexible income sources: With a bank statement loan, you can use a variety of income sources to qualify, such as business revenue, rental income, or even investment income.
  • Higher loan amounts: Depending on your income and creditworthiness, you may be able to qualify for a higher loan amount with a bank statement loan than you would with a traditional mortgage.

Is a bank statement loan right for you?

If you’re self-employed or have non-traditional income sources, a bank statement loan may be a good option for you. However, it’s important to work with a knowledgeable mortgage broker who can help you navigate the loan process and find the best terms for your unique situation.

At Intercontinental Ultimate Solutions, we specialize in helping self-employed borrowers and those with non-traditional income sources obtain the financing they need to achieve their homeownership goals. Click here to contact us or call (561) 717-6826 for a quote.

Additional restrictions may apply. Please inquire. All loans are subject to credit approval.