Bank Statement Loans

A bank statement mortgage loan is a type of loan that is designed for self-employed borrowers who have difficulty documenting their income through traditional means. With a bank statement mortgage loan, the lender uses the borrower's bank statements to verify their income and determine their ability to repay the loan.

This type of loan is typically used by self-employed borrowers who may not have a regular salary or wage, such as small business owners or independent contractors. Because these borrowers may not have traditional pay stubs or W-2 forms to verify their income, a bank statement mortgage loan can provide an alternative way for them to qualify for a mortgage.

Bank Statement Loan Features:

• Income is verified using bank statements: With a bank statement mortgage loan, the lender uses the borrower's bank statements to verify their income and determine their ability to repay the loan.

• Can be used by self-employed borrowers: A bank statement mortgage loan is designed for self-employed borrowers who have difficulty documenting their income through traditional means.

• More flexible credit requirements: Because a bank statement mortgage loan is designed for self-employed borrowers who may not have traditional income documentation, it may have more flexible credit requirements than a conventional loan.

• May require a larger down payment: Because a bank statement mortgage loan is considered to be a higher risk for lenders, it may require a larger down payment than a conventional loan.

Overall, a bank statement mortgage loan is a type of loan that is designed for self-employed borrowers who have difficulty documenting their income through traditional means. This type of loan can provide an alternative way for these borrowers to qualify for a mortgage, but it may require a larger down payment and have more flexible credit requirements.