BANK STATEMENT LOAN

A bank statement home loan is a type of non-traditional mortgage designed for self-employed individuals, freelancers, or business owners who may not have the typical income documentation required for a conventional loan.

Instead of using W-2s, pay stubs, or tax returns to verify income, a bank statement loan uses 12 to 24 months of personal or business bank statements to determine a borrower’s income and ability to repay the loan.

• No Tax Returns Required: Income is verified through bank deposits, not traditional tax documentation.

• Flexible Qualification: Great for borrowers with write-offs or fluctuating income that makes tax returns look lower than actual earnings.

• Higher Down Payment: Typically requires 10%–20% down.

• Higher Interest Rates: Rates are usually slightly higher than conventional loans due to increased risk.

• Credit Score Requirements: Most lenders prefer a credit score of 620 or higher.

• Loan Limits: Often available for larger loan amounts than conventional limits, making it popular for high earners.

• Are self-employed, freelance, or own a business

• Have strong cash flow but don’t show high net income on taxes

• Need an alternative way to document income

• Have a strong bank deposit history over the past 1–2 years