Home mortgage experts

Bank Statement Loans

The Solution For Self-Employed Mortgages

The bank statement loan program is the most common sought solution for self-employed individuals trying to obtain a mortgage. We understand that self-employed individuals experience difficulties getting approved for a mortgage due to things like write offs and other “underwriting obstacles.”

With the bank statement loan program, we’re looking at bank statements to analyze cashflow to cover the mortgage payment vs tax returns. We won’t have to turn in tax returns, K1’s, etc.

Typically, we’ll use 12-24 months of bank statements for our income analysis. Being self employed is a necessity for this program, as it is tailored for truly self-employed individuals.

Credit score will play a role in the down payment position (loan to value) that the applicant will need to follow. 10% down is the industry standard minimum for down payment on bank statement mortgage programs.

Two years self-employed history is also an industry standard that most of the bank statement mortgage lenders require.

Our team is proficient in alternative type loans, especially alternative type loans. Please reach out today to speak with us so we may provide you with feedback and advice to obtain the best mortgage for your unique scenario.

Benefits and Considerations

Bank statement loans are designed for borrowers who are not able to document their income using pay stubs, tax returns and other income verification documents required for a qualified mortgage. The bank statements provided with the loan application must be consecutive and cover the 12 to 24 months immediately prior to the application.

Less Documentation
Traditional mortgage underwriting for self-employed borrowers usually requires 1-2 years of tax returns. Another potential annoyance for some self-employed individuals is that business tax returns are usually required for any business that a borrower holds 25% or more ownership in.
Higher Mortgage Amount
We usually see that self-employed individuals are able to borrower more money for a home with a banks statement mortgage vs a traditional mortgage program such as a Fannie Mae mortgage. This is usually a byproduct of self-employed individuals taking advantage of write-offs, which can shrink their income when using tax returns to analyze income.