Bank Statement Mortgage Programs

A viable solution for self-employed individuals might be a bank statement loan. This type of non-qualified mortgage loan enables borrowers to obtain a home loan without the need to present their net income on tax returns or pay stubs. By analyzing bank statements spanning 12 months, we can determine if you meet our requirements and provide you with a mortgage loan offering a competitive interest rate.

Our bank statement loan program is particularly suitable for:

  • Various professionals
  • Including small business owners
  • Independent contractors
  • Consultants
  • Realtors
  • Freelance employees
  • Entrepreneurs
  • GIG Workers
  • Truckers

To apply for a bank statement loan, you must fulfill the following criteria:

  • Submit 12 consecutive months of bank statements from the same account
  • A down payment of at least 10% is required, along with mortgage insurance
  • The highest loan-to-value (LTV) ratio is 90%
  • A minimum credit score of 680 is necessary
  • The maximum acceptable debt-to-income ratio is 45%
  • The loan amount ranges from a minimum of $175,000 to a maximum of $1,250,000.
  • Escrowing for taxes and insurance is mandatory
  • A minimum of two years of self-employment or 1099 contract work, is required. Exceptions can be made for individuals who have been in the same line of work for at least one year prior.
Bank Statement Mortgage

Requirements and Qualifications for Self-Employed Mortgage Loans

In order to qualify for a self-employed mortgage loan, lenders generally treat self-employed clients in a similar manner to other applicants. You must meet certain criteria concerning debt-to-income ratio, credit history, down payments, and income, which are applicable to all mortgage seekers. However, please note that the specific requirements for self-employed individuals may differ from one lender to another.

Mortgage lenders generally classify an individual as "self-employed" if they own 25% or more of a business. Additionally, individuals who are not W-2 employees may also fall into this category. Typically, you must have a minimum of two years of self-employment in the same business.

If you lack two years of consistent business ownership, there are alternative methods to verify your income without relying on this specific requirement. Certain lenders may accept a co-borrower who is not self-employed, allowing their additional income to be considered. It is important to maintain bank statements and records of your business and personal savings accounts.