Bank Statement Loans

What is a Bank Statement loan?

A bank statement loan is a Non-QM alternative to traditional mortgage products. These loans make it possible to qualify based on bank statements and banking history in place of traditional income documentation. Some creditworthy borrowers who don’t qualify for other types of loans may qualify for a bank statement loan instead. Loan limits range based on individual qualifications as do interest rates.

What are the general requirements to qualify for this type of loan?

These loans usually require between 12 to 24-months’ worth of personal and/or business bank statements showing steady and consistent income. FICO score requirements can start as low as 680 and in certain cases your back-end debt-to-income ratio can go up to 50%. Minimum down-payments can start as low as 10% on primary home purchases and go up depending on type of home, number of units, loan amount, and credit scores.

What types of properties can I use this loan type on?

These loans can be used on most types of common properties but may not work for unique property types such as manufactured homes or log cabins. Refer to your loan officer for confirmation on the use of this loan for specific properties.

Is there mortgage insurance for this type of loan?

One benefit to this type of program is that it generally does not require mortgage insurance.

Who are these loans best suited for?

Bank statement loans are a great option for self-employed borrowers who may have difficulty getting approved for a traditional mortgage and make it easier for self-employed borrowers to prove their income. They tend to have higher interest rates so be prepared for a potentially larger payment than your traditional type of loan. If you have good to great credit, low to mid debt-to-income, and a fair amount of funds available for down-payment, closing costs, and reserves, this might be the right option for you.

Team TLC Lending Loan Officer

Team TLC Lending

View All Testimonials