Bank Statement Loans
Or Get a Free Rate Quote
1800-725-9946
Flexible Financing for Self-Employed Borrowers
Viable solution to help you achieve homeownership
Find the right loan product that fits your financial situation
Dedicated mortgage experts to guide you through the process
888-549-1005
Call for a Free Mortgage Saving Report
No Credit Checks Required
Bank Statement Loans
Flexible Financing for Self-Employed Borrowers
Viable solution to help you achieve homeownership
Find the right loan product that fits your financial situation
Dedicated mortgage experts to guide you through the process
888-549-1005
Call for a Free Mortgage Saving Report
No Credit Checks Required
Get a Free Mortgage Saving Report
I consent to receive SMS notifications, alerts, and occasional marketing communications from the company.
Get Approved for an Bank Statement Loans—Faster, Easier, and with Lower Costs!
Lower Down Payments: Qualify with as little as 3.5% down, making homeownership more affordable.
Fast Pre-Approval: Get pre-approved quickly so you can shop with confidence.
Better Interest Rates: We help secure the most competitive FHA loan rates available.
Streamlined Process: Our experts handle paperwork and guide you every step of the way.
Credit-Friendly Options: Flexible credit requirements make approval easier.
Low Closing Costs: We negotiate better terms to keep more money in your pocket.
Get a Free Mortgage Saving Report
I consent to receive SMS notifications, alerts, and occasional marketing communications from the company.
Start with our Mortgage Approval Tool!
Start with our Mortgage Approval Tool!
Home Purchase
Buying a home is a major investment,
requiring planning, budgeting, and research to secure the perfect property for long-term stability.
Home Refinance
Home refinancing replaces an existing mortgage with a new loan, often to lower interest rates, reduce payments, or access home equity.
Home Equity
Home equity is the property's market value minus any outstanding mortgage balance, allowing homeowners to borrow against their ownership stake.
Reverse
A reverse mortgage allows homeowners, typically seniors, to convert home equity into cash without monthly payments, repaid when they move or sell.
Start with our Mortgage Approval Tool!
Our Service Commitment
No Hidden Fees: We believe in clear and upfront communication about all costs associated with your mortgage.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Get Expert Advise, every time from a licensed loan officer with a suite of products to choose from.
Our Team strives to deliver excellence, reach us day or night about any of your mortgage questions, we’re here for you when you need.
Working with us or just thinking of it, we will always be honest and transparent. No sales targets means way better service!
Largest Lender Network in Florida, Georgia & Texas
Our Service Commitment
Get Expert Advise, every time from a licensed loan officer with a suite of products to choose from.
Our Team strives to deliver excellence, reach us day or night about any of your mortgage questions, we’re here for you when you need.
Working with us or just thinking of it, we will always be honest and transparent. No sales targets means way better service!
No Hidden Fees:We believe in clear and upfront communication about all costs associated with your mortgage.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Available When & Where You Want!
Across multiple states our Licensed Loan officers will help you from the application to the funding and beyond.
We work on your schedule, with streamlined technology and support staffing, your mortgage request will always be a priority!
Available When & Where You Want!
Across multiple states our Licensed Loan officers will help you from the application to the funding and beyond.
We work on your schedule, with streamlined technology and support staffing, your mortgage request will always be a priority!
Book an Appointment
Book an Appointment
Meet Our Team
Angle Ogbele
Natasha Staplowski
Darnell Smith
Arlan Zuberi
Meet Our Team
Angle Ogbele
Natasha Staplowski
Darnell Smith
Arlan Zuberi
What is Bank Statement Loans
Bank statement loans are a type of mortgage designed for borrowers who have non-traditional income sources or self-employed individuals who may not have the standard W-2 forms or tax returns that are required to prove income for a conventional loan.
Instead of relying on tax returns, bank statement loans use a borrower's bank statements, usually from the last 12 to 24 months, to verify income. Lenders review the deposits and cash flow in these statements to determine the borrower's ability to repay the loan.
How Does a Bank Statement Works?
Application: The borrower applies for a mortgage with a lender that offers bank statement loans.
Documentation: Instead of providing tax returns, the borrower submits 12 to 24 months of personal or business bank statements.
Income Verification: The lender reviews the deposits shown on the bank statements to determine the borrower's income. They look for consistent and regular deposits to calculate the average monthly income. Some lenders may require a profit and loss statement (P&L) prepared by a certified public accountant (CPA) to complement the bank statements.
Income Calculation: The lender uses the bank statements to calculate the borrower's monthly income. They may apply an expense factor to business bank statements to account for business expenses not reflected in the statements.
Debt-to-Income Ratio (DTI): The lender calculates the borrower's DTI ratio by dividing the total monthly debt obligations by the monthly income derived from the bank statements. This helps determine the borrower's ability to manage monthly payments.
Credit and Assets: The lender also assesses the borrower's credit history and score, as well as liquid assets, to ensure they meet other loan qualification criteria.
Loan Terms: If the borrower qualifies, the lender will offer loan terms, which may include a higher interest rate compared to conventional loans due to the perceived higher risk.
Approval and closing: Once approved, the borrower move forward with the closing process, which includes an appraisal of the property, title search, and other due diligence before the loan can close.
Bank statement loans are particularly useful for borrowers who have significant tax deductions that lower their taxable income, making it difficult to qualify for a mortgage using traditional income verification methods. However, these loans require a larger down payment and may come with higher interest rates.
What is Bank Statement Loans
Bank statement loans are a type of mortgage designed for borrowers who have non-traditional income sources or self-employed individuals who may not have the standard W-2 forms or tax returns that are required to prove income for a conventional loan.
Instead of relying on tax returns, bank statement loans use a borrower's bank statements, usually from the last 12 to 24 months, to verify income. Lenders review the deposits and cash flow in these statements to determine the borrower's ability to repay the loan.
How Does a Bank Statement Works?
Application
The borrower applies for a mortgage with a lender that offers bank statement loans.
Documentation
Instead of providing tax returns, the borrower submits 12 to 24 months of personal or business bank statements.
Income Verification
The lender reviews the deposits shown on the bank statements to determine the borrower's income. They look for consistent and regular deposits to calculate the average monthly income. Some lenders may require a profit and loss statement (P&L) prepared by a certified public accountant (CPA) to complement the bank statements.
Income Calculation
The lender uses the bank statements to calculate the borrower's monthly income. They may apply an expense factor to business bank statements to account for business expenses not reflected in the statements.
Debt-to-Income Ratio (DTI)
The lender calculates the borrower's DTI ratio by dividing the total monthly debt obligations by the monthly income derived from the bank statements. This helps determine the borrower's ability to manage monthly payments.
Credit and Assets
The lender also assesses the borrower's credit history and score, as well as liquid assets, to ensure they meet other loan qualification criteria.
Loan Terms:
If the borrower qualifies, the lender will offer loan terms, which may include a higher interest rate compared to conventional loans due to the perceived higher risk.
Approval and closing
Once approved, the borrower move forward with the closing process, which includes an appraisal of the property, title search, and other due diligence before the loan can close.
Bank statement loans are particularly useful for borrowers who have significant tax deductions that lower their taxable income, making it difficult to qualify for a mortgage using traditional income verification methods. However, these loans require a larger down payment and may come with higher interest rates.
Benefits of Bank Statement Loans
Bank statement loans are designed to cater to borrowers who may not have a consistent income as reflected in traditional W-2 forms or tax returns. Here are some of the key benefits:
Income Verification: Instead of tax returns or pay stubs, bank statement loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to calculate an average monthly income that can be used to qualify for the loan.
Self-Employed and Entrepreneurial Borrowers: These loans are particularly beneficial for self-employed individuals, freelancers, independent contractors, and small business owners whose income streams are not traditionally documented.
Credit Score Requirements: While more flexible than conventional loans, bank statement loans still require a reasonable credit score, around 620 or higher. However, the exact score required can vary by lender.
Down Payment: Borrowers may need to provide a larger down payment compared to traditional loans, often ranging from 10% to 30%, depending on the lender's requirements and the borrower's credit profile.
Debt-to-Income Ratio (DTI): Lenders will consider the borrower's DTI ratio, but the acceptable ratio may be higher than that for conventional loans, providing more leeway for borrowers with higher levels of debt.
Interest Rates: The interest rates for bank statement loans may be higher than those for traditional mortgages, reflecting the increased risk taken on by the lender due to the non-traditional income verification process.
Loan Structure: Bank statement loans can come with various structures, including fixed-rate or adjustable-rate mortgages, and terms can vary widely based on the lender's offerings and the borrower's needs.
Asset Requirements: Borrowers may need to show they have sufficient liquid assets or cash reserves in the bank to cover several months of mortgage payments, ensuring they can manage payments during periods of variable income.
(PMI): Many bank statement loans do not require PMI, even with a down payment of less than 20%, which can result in significant savings for the borrower.
Property Types: These loans can be used for a variety of property types, including single-family homes, condos, and sometimes multi-family properties or commercial real estate.
Bank statement loans offer an alternative path to homeownership or real estate investment for those with non-traditional income streams, providing flexibility that is not available with conventional mortgage products.
Benefits of Bank Statement Loans
Income Verification
Instead of tax returns or pay stubs, bank statement loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to calculate an average monthly income that can be used to qualify for the loan.
Self-Employed and Entrepreneurial Borrowers
These loans are particularly beneficial for self-employed individuals, freelancers, independent contractors, and small business owners whose income streams are not traditionally documented.
Credit Score Requirements
While more flexible than conventional loans, bank statement loans still require a reasonable credit score, around 620 or higher. However, the exact score required can vary by lender.
Down Payment
Borrowers may need to provide a larger down payment compared to traditional loans, often ranging from 10% to 30%, depending on the lender's requirements and the borrower's credit profile.
Debt-to-Income Ratio (DTI)
Lenders will consider the borrower's DTI ratio, but the acceptable ratio may be higher than that for conventional loans, providing more leeway for borrowers with higher levels of debt.
Interest Rates
The interest rates for bank statement loans may be higher than those for traditional mortgages, reflecting the increased risk taken on by the lender due to the non-traditional income verification process.
Loan Structure
Bank statement loans can come with various structures, including fixed-rate or adjustable-rate mortgages, and terms can vary widely based on the lender's offerings and the borrower's needs.
Asset Requirements
Borrowers may need to show they have sufficient liquid assets or cash reserves in the bank to cover several months of mortgage payments, ensuring they can manage payments during periods of variable income.
(PMI)
Many bank statement loans do not require PMI, even with a down payment of less than 20%, which can result in significant savings for the borrower.
Property Types
These loans can be used for a variety of property types, including single-family homes, condos, and sometimes multi-family properties or commercial real estate.
Features of Bank Statement Loans
Easier Qualification for Self-Employed Individuals: Traditional loans often require W-2 forms and tax returns to verify income. Bank Statement Loans use bank statements to calculate income, making it easier for those with non-traditional income to qualify.
No Tax Returns Required: Since income is verified through bank statements, borrowers do not need to provide tax returns. This can be particularly beneficial for individuals who have write-offs and deductions that lower their taxable income, which can sometimes make it difficult to qualify for traditional loans.
Potential for Higher Loan Amounts: By using gross deposits instead of net income to qualify borrowers, Bank Statement Loans might allow for larger loan amounts than what might be possible with a traditional loan based on taxable income.
Flexible Income Verification: Income is verified through bank statements, which can be more reflective of a borrower's true cash flow, especially for those who have seasonal income or fluctuating earnings.
Quicker Approval Process: Without the need for tax transcripts and other traditional documentation, the approval process can be quicker than with conventional loans.
Access to Competitive Loan Terms: While interest rates for Bank Statement Loans may be higher than those for conventional loans, they are often more competitive than other non-traditional lending options, such as hard money loans.
Customizable Loan Structures: Bank Statement Loans can often be structured to meet the unique needs of the borrower, with adjustable rates, fixed rates, and interest-only options available.
Potential for Refinancing: These loans can also be used for refinancing, which can be helpful for individuals looking to cash out equity or secure a lower interest rate.
Privacy: For borrowers who prefer not to disclose their tax returns due to privacy concerns or other reasons, Bank Statement Loans provide an alternative that requires less financial disclosure.
Asset Utilization: Some Bank Statement Loan programs allow the use of assets as proof of ability to pay, which can be beneficial for borrowers with significant assets but irregular income.
Features of Bank Statement Loans
Easier Qualification for Self-Employed Individuals
Traditional loans often require W-2 forms and tax returns to verify income. Bank Statement Loans use bank statements to calculate income, making it easier for those with non-traditional income to qualify.
No Tax Returns Required
Since income is verified through bank statements, borrowers do not need to provide tax returns. This can be particularly beneficial for individuals who have write-offs and deductions that lower their taxable income, which can sometimes make it difficult to qualify for traditional loans.
Potential for Higher Loan Amounts
By using gross deposits instead of net income to qualify borrowers, Bank Statement Loans might allow for larger loan amounts than what might be possible with a traditional loan based on taxable income.
Flexible Income Verification
Income is verified through bank statements, which can be more reflective of a borrower's true cash flow, especially for those who have seasonal income or fluctuating earnings.
Quicker Approval Process
Without the need for tax transcripts and other traditional documentation, the approval process can be quicker than with conventional loans.
Access to Competitive Loan Terms
While interest rates for Bank Statement Loans may be higher than those for conventional loans, they are often more competitive than other non-traditional lending options, such as hard money loans.
Customizable Loan Structures
Bank Statement Loans can often be structured to meet the unique needs of the borrower, with adjustable rates, fixed rates, and interest-only options available.
Potential for Refinancing
These loans can also be used for refinancing, which can be helpful for individuals looking to cash out equity or secure a lower interest rate.
Privacy
For borrowers who prefer not to disclose their tax returns due to privacy concerns or other reasons, Bank Statement Loans provide an alternative that requires less financial disclosure.
Asset Utilization
Some Bank Statement Loan programs allow the use of assets as proof of ability to pay, which can be beneficial for borrowers with significant assets but irregular income.
Quick Links
Other Links
Contact Information
RateShop Mortgage LLC is a licensed mortgage broker in FL, GA, and TX.
In accordance with federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, or age (provided you have the capacity to enter into a binding contract), nor do we discriminate because any part of your income is derived from public assistance programs, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. The Federal Trade Commission, Equal Credit Opportunity Division, Washington, DC 20580, is the federal agency responsible for administering these laws.
Copyright 2025. All Rights Reserved Rateshop.us
#1 Voted Mortgage Calculators in Canada
Our Mortgage Experts
Dylan James
Mortgage Agent Level 1
Abdoulaye Sow
Mortgage Agent Level 1
Michael Le Chi
Mortgage Agent Level 1
Heith Gharib
Mortgage Agent Level 1
Sara Fresco
Mortgage Agent level 1