Bank Statement Loans are an excellent mortgage option for borrowers who don’t receive traditional income documentation like W-2s or paystubs and would not qualify for a FHA or Conventional mortgage usually. Instead of tax returns, these loans use personal or business bank statements to verify income. This makes them a powerful solution for many credit-worthy individuals who may be underserved by conventional lenders.
Ideal Candidates for Bank Statement Loans
Here are some common types of borrowers who can benefit from a Bank Statement Loan:
- Self-Employed Individuals
Including freelancers, consultants, and solopreneurs who generate income through contracts, gigs, or independent work. - Small Business Owners
Owners or partners of businesses who reinvest in their company and may not show large profits on tax returns—but have strong cash flow. - Independent Contractors & 1099 Earners
Real estate agents, rideshare drivers, hairstylists, and other independent professionals who receive income outside of traditional payroll. - Gig Economy Workers
People who work with platforms like Uber, DoorDash, Etsy, or Upwork. - Commission-Based Professionals
Salespeople, insurance agents, and others who receive irregular but strong commission income. - Foreign Nationals with U.S. Bank Accounts
Borrowers from other countries who can show consistent deposits in U.S. accounts.
General Requirements for a Bank Statement Loan
While guidelines vary by lender, here are the typical requirements for qualifying:
- 12 to 24 Months of Bank Statements
Either personal or business accounts (sometimes both) used to verify consistent income deposits. - Good Credit Score
Most programs require a minimum credit score of 620–700, with better terms for higher scores. - Minimum Loan Amount
Usually starts at $100,000 or more, making it ideal for home purchases or refinancing larger properties. - Down Payment
Often 10% to 20%, depending on credit, loan size, and income strength. - Competitive Rates
Rates are slightly higher than traditional loans, but still very competitive—especially when considering the flexibility offered. - Proof of Self-Employment
Typically a business license, CPA letter, or other documentation showing at least two years of self-employment history.
Why Choose a Bank Statement Loan?
Bank Statement Loans give self-employed borrowers the opportunity to qualify based on real cash flow, not tax write-offs or irregular income reports. This makes homeownership more accessible to a wide range of hardworking individuals who might not otherwise qualify.
Let us look at your case and evaluate it, you can schedule an appointment or give us a call at 786 622-2224.