Additional Information
Who Can Benefit from a Bank Statement Loan?
- Self-Employed Borrowers who have fluctuating income.
- Small Business Owners with substantial cash flow but high tax deductions.
- Freelancers & Independent Contractors without consistent pay stubs.
- Gig Economy Workers with non-traditional income sources.
How a Bank Statement Loan Works
- Submit Bank Statements – Usually 12 or 24 months of personal or business statements.
- Income Calculation – Lender reviews deposits to determine your average monthly income.
- Loan Approval – Once approved, you can choose fixed or adjustable rates with terms often ranging from 15 to 30 years.
- Repayment – Payments are made monthly, just like traditional mortgages.
Bank Statement Loan Requirements in 2025
- Credit Score: Often 620+ (higher scores may get better rates).
- Down Payment: Typically 10%–20% depending on the loan amount and profile.
- Bank Statements: 12–24 months of statements required; must show consistent deposits.
- Debt-to-Income Ratio: Generally 43% or less (flexibility possible with strong credit and reserves).
- Reserves: Some lenders require several months of mortgage payments in reserves.
Advantages of Bank Statement Loans
- No Tax Returns Needed – Perfect for self-employed borrowers who take large deductions.
- Qualify Based on Cash Flow – Approval is based on actual deposits, not taxable income.
- Flexible Terms – Options for fixed or adjustable-rate mortgages.
- Larger Loan Amounts Possible – Depending on your bank deposit history.
Considerations Before Applying
- Rates may be slightly higher than conventional loans due to added risk.
- Larger down payment may be required compared to FHA or conventional loans.
- Not all lenders offer bank statement loans — you need a specialized lender familiar with Non-QM programs.
Is a Bank Statement Loan Right for You?
If you have strong cash flow but don’t fit the traditional W-2 income model, a bank statement loan can open the door to homeownership or real estate investment without the hassle of tax return documentation. I’ll help you review your statements, find the right program, and guide you through a smooth approval process.
