Bank Statement Mortgage

A bank statement loan is a type of mortgage designed for self-employed individuals or those with non-traditional income sources. Instead of using W-2s, pay stubs, or tax returns, income is verified through 12 to 24 months of personal or business bank statements.

Bank statement loans are ideal for self-employed borrowers, freelancers, independent contractors, and business owners who have consistent income but may not have traditional income documentation.

Typically, you'll need 12 to 24 months of personal or business bank statements, proof of self-employment (such as a business license or a letter from a CPA), and a minimum credit score of 620. Additional documents may include proof of assets and identification.

Benefits include flexible income verification, higher loan limits up to $4,000,000, competitive interest rates, and the possibility of avoiding private mortgage insurance (PMI) with a sufficient down payment.

The closing process generally takes between 2 to 3 weeks, depending on the complexity of the loan and the efficiency of the documentation process.

Yes, bank statement loans can be used to finance primary residences, second homes, and investment properties, providing flexibility for various real estate needs.