Bank Statement Loans – Frequently Asked Questions

Below are some of the most frequently asked questions and answers about bank statement loans.

If you have additional questions about bank statement loans, and would like some assistance, we have a lender contact you to answer your questions.

To have a bank statement lender contact you, please fill out this form.

What is a bank statement loan?

A bank statement loan is a mortgage program that allows you to use your bank statement to verify income instead of tax returns.  These programs are intended for self-employed borrowers who struggle to qualify for a conventional loan.

Who offers bank statement loans?

There are several mortgage lenders that offer bank statement programs.  You can view a list of bank statement lenders on this page.  If you would like some assistance finding a bank statement lender, please fill out this form, and we will connect you with a bank statement lender.

What is the minimum credit score required?

The minimum credit score required to get a bank statement loan depends on the lender.  We work with a bank statement lender that offers bank statement loans to borrowers with credit scores as low as 500.

How much is the minimum down payment required?

The minimum down payment required depends on the lender.  Several bank statement lenders allow down payment as low as 10%.  The higher your credit score, the lower the down payment you will likely qualify for.  Also, the loan amount will also influence the minimum down payment required (the larger the loan amount, the more the lender will likely require for the down payment).

How do I know if I eligible for a bank statement loan?

It is easy to find out if you qualify for a bank statement loan.  All you will need to do is speak with a bank statement lender, and they can help you see if you qualify.  If you would like to find out if you are eligible for a bank statement loan, we can help match you with a lender in your location.

Click here to get matched with a bank statement lender

What types of self-employed people are eligible?

Any type of self-employed professional might be eligible for a bank statement loan.  This includes a wide range of people, including business owners, entrepreneurs, freelancers, gig workers, contractors, and many other types of self-employed professionals.

What is the maximum DTI ratio allowed?

The maximum DTI allowed depends on the lender.  Most bank statement lenders allow a maximum DTI ratio around 50%, but there are some lenders that allow higher DTI ratios (up to 59%).

What types of properties can be purchased using this program?

Between all the lenders that offer this program type, nearly any type of home eligible.  This includes single family residences, 2-4 unit properties, townhomes, condos, non-warrantable condos, and co-ops.

Bank statement loans are available to finance second homes and investment properties.

What documentation might be required to obtain the loan?

In addition to your bank statements, you should expect to be required to submit a business license, tax preparer’s letter, or your corporate paperwork.  The exact documentation requirements will depend on the lender.

Is it possible to have a W-2 co-borrower?

Yes, you can have a co-borrower who uses their W-2 tax returns and income. They will be verified in a traditional manner, along with your income that is verified through bank statements.

Are there options to refinance with a bank statement program?

Yes, you there are options to refinance your mortgage with a bank statement program. This includes rate and term refinancing (to lower your rate and payment), as well as cash out refinancing.

Do lenders accept income received through credit card clearing houses?

Yes, some lenders allow income that is received through a credit card clearing house, such as PayPal, AMEX, or Square.  All income sources are considered on a case-by-case basis, but as long as the income you receive makes sense for your type of business, you should be able to use the income received through these sources.

Can you get a bank statement loan if you receive seasonal income?

If you only receive income for part of the year, you may still qualify for a bank statement loan program. Your total income will be averaged out for either 12 or 24 months, so as long as the monthly average meets the necessary income requirements for your loan, you may qualify.

Can you use retirement income for these programs?

Any retirement income that is deposited into your bank account should be eligible to use for qualifying purposes.

Will having any NSF (non-sufficient funds) or overdrafts on my bank account affect my chances of qualifying?

Some lenders will have restrictions on the amount of NSF / overdrafts present on your account within a 12 month period.  You may receive an exception, but it will ultimately depend on the lender’s guidelines, and the underwriter’s decision.

Would You Like to See if You Qualify for a Bank Statement Loan?

We can help match you with a mortgage lender that offers bank statement loans in your location.  To have a bank statement lender contact you, please follow the link below.

Click Here to Get Matched with a Bank Statement Lender