Bank Statement Loan
Process For Bank Statement Loan
Bank statement loans are a type of loan that allows you to get a mortgage without the documents that most loans need to prove your income.
We use bank statements to qualify you for a mortgage rather than your tax returns, which are typically required for self-employed borrowers. If your tax returns show a loss, most lenders would turn you away. This is the case even with a profitable Profit & Loss. Lenders can only use the income claimed on your tax returns for qualifying.
A bank statement loan bypasses the need for tax returns and instead focuses on the money you bring in monthly to qualify you for a mortgage. It works just like any other loan – you apply for and qualify for the loan and get the funding to buy a home, making your mortgage payments monthly.
Whom Is a Bank Statement Loan Good For?
You may want to use a bank statement loan if you don't have a steady cash flow. They are also good if you can’t get proof of income from an employer. People who might use a bank statement loan could be: