Bank Statement Loans

Bank Statement Loans

Bank statement loans are great financing options for self employed, investors and high net worth borrowers. Bank statement loans are an alternative income verification loans that allow deposits made into a bank account to be used for income qualification. This means that if a borrowers tax returns do not show enough income due to for example large business expense write-offs they can qualify using the deposits made instead.

bank statement loans

Bank Statement Loans – Qualification

Some of the qualification requirements for bank statement loans include:

  • borrower must have a 25% or greater ownership interest in a business to be considered self employed
  • personal or business bank statements allowed
  • retirement and other income allowed
  • self employed borrower may have a W2 co-borrower
  • minimum credit score 680 (lower on case by case)
  • minimum loan amount $100,000
  • maximum loan amount $3,000,000 (higher on case by case)
  • debt to income (DTI) up to 50%
  • max cash out allowed $1,500,000

These loans provide a great alternative option to the self employed mortgage as tax returns, IRS Form 4506 and W2s or paystubs are not needed for income qualification.

For Investors

Designed specifically for experience real estate investors looking to purchase or refinance investment properties and hold for business purposes. The loans terms are determined based on debt coverage ratio(DCR) and cash flows from the property. Some other features include:

  • no tax returns required
  • max cash-out $1,000,000
  • max loan to value (LTV): 75%
  • credit scores as low as 680
  • loan terms: 5/1, 7/1, 10/1 ARMs and 15 yr fixed
  • borrower may own an unlimited number of financed properties
  • interest only 5/1 ARM available
  • minimum loan amount: $100,000

We also have other financing options such as the stated income loans. For more specific information or to apply for a bank statement loan or other loan product, please contact us.

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