Bank Statement Loans
Primary Residences in California
Investment Properties Nationwide
Bank Statement Loans allow a self-employed borrower to use the average monthly deposits in his or her business and/or personal bank account – instead of traditional income sources such as pay stubs and tax returns – to demonstrate his or her ability to afford timely mortgage payments. The program is ideal for self-employed borrowers who – due to substantial business write-offs – cannot qualify for a loan using tax returns for income verification.
Who Would Benefit from a Bank Statement Loan?
Bank Statement Loans are ideal for self-employed individuals and small business owners who cannot provide adequate income documentation in the forms of paystubs, W-2s and/or income tax returns but who can show sufficient deposits in their business and/or personal bank statements.
How It Works
With a Bank Statement Loan, your income is calculated by adding up all the deposits in your business and/or personal account for either a 12 or 24-month period, and then dividing the total by the same number of months. Any transfers between accounts are not considered. This method is very effective for business owners because it allows their income to be calculated based on gross deposits for the business rather than on profit or personal income.
- LTV as high as 85% for cash-out refinances for qualified borrowers
- Qualify with 12 months of bank statements regardless of LTV
- No tax returns | No 4506C
- FICO as low as 600 (or 660 for I/O)
- LTV ≤ 65% = Unlimited cash-out
- Cash-out may be used towards reserves
- Gift funds may be used towards reserves**
- Only 1 appraisal required when loan amount is ≤ $1.5MM
- Available for primary residence, second homes & investment properties
- Usable Assets: 100% checking & savings, 90% stocks/bonds/mutual funds, 70% retirement accounts (80% if of retirement age)
- Loan amounts up to $3M for purchase, rate & term, and cash-out refi
- Multiple term options: 5/6 & 7/6 SOFR ARM* | 30YR Fixed* | 40YR Fixed 10YR I/O
A borrower with a 25% or greater ownership interest in a business is considered self-employed.
*Interest only option available. | **Primary residence only. Minimum FICO 680.
- Business in operation for at least 24 months
- Minimum of $100,000 in revenue per calendar year
As an example, a small business owner with 12 months’ bank statements showing a total of $240,000 in deposits would be able to use $20,000 as his or her qualifying income.
Our Commitment to You
- Common Sense Underwriting With In-House Approvals
- Quick Closing
- Referrals Valued & Brokers Protected
- Committed to the Highest Level of Customer Satisfaction
When you’re ready, fill out the application below
If You’d Prefer, Schedule a Loan Officer Consultation
To determine the right loan program with you, schedule some time with a loan officer to discuss your options. Call us at 844-574-5626 now or schedule a time to meet with a loan officer.