What is a Bank Statement Home Loan and Who Should Be Using One? – Stress Free Mortgage

Bank statement home loans allow borrowers to apply for a mortgage without having to prove income. If you are self-employed, then this article is for you! Sometimes, our self-employed clients find themselves unable to prove enough income in a tax return but should qualify for a mortgage loan. A bank statement home loan can work well in these cases because lenders use recent bank statements to assess income. This alternate financing option will use 50% of the deposits made into a bank account as monthly income over the last 12-24 months. Depending on the type of business, a borrower could potentially use even more deposits if necessary to qualify for a loan. However, keep in mind that your credit score still weighs heavily on any transaction.
Business bank programs can not only be used for purchases and refinancing, but also second mortgages. There are several lenders who will use bank statement loans to help borrowers qualify for that second mortgage. This option is not typically available through a bank, but it is one that is available through a mortgage broker. Contact Stress Free Mortgage to find out more information about bank statement home loans!
Please call our office if you have any questions: 661-295-0555.