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What is a Bank Statement Loan?

A bank statement mortgage loan is for someone who is self-employed. This loan allows self-employed borrowers to apply for a home loan without showing net income on taxes, pay stubs, etc. Someone who might use this type of loan typically has a lot of deductions and write offs, making the net income too low to be used for a conventional loan.

Advantages of a Bank Statement Loan

  • You are not required to show tax returns or transcripts
  • Income statements are made up of monthly income deposits
  • Option for fixed-rate or adjustable mortgage
  • As little as 10% down
  • Lender can look at bank statements from 12-24 months back
  • LTV (loan-to-value ratio) up to 90%
  • Loan amounts up to $3 million
  • 55% DTI (debt-to-income ratio) okay with 680 FICO (credit score)
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