What are Bank Statement Loans?

For the majority of Americans, purchasing a home will be the most expensive asset that the person ever secures. Considering the value of homes, it also makes sense that most Americans can only afford to purchase this type of asset by first securing a loan.

Unfortunately, too many Americans are excluded from the traditional mortgage lending process. The typical mortgage lender requires potential homebuyers to prove that they’re a good candidate for a loan by demonstrating that they make a consistent income, don’t have a lot of other debts, have a good credit score, and have already saved up a sizable downpayment.

If you struggle to prove your income due to being self-employed or receiving inconsistent streams of revenue, then you could find yourself consistently getting turned down for a traditional loan.

In these circumstances, a bank statement loan might be a good option for you.

A bank statement loan gives you the opportunity to buy a home even if you can’t produce a W-2 Form or a tax return that proves your income level. A bank statement lender will ask you to provide bank statements from the past two years. This financial information can help your lender analyze your overall ability to pay based on your account’s average balance, deposit levels, and disposable income amounts.

The main advantage of using a bank statement loan is that you can secure a loan without having to get a different job, but the biggest disadvantage of this type of loan is that you’ll likely need to have a higher downpayment and experience higher interest rates than you would with a traditional loan.

Are You Ready to Secure Your Dream Home?

Have you found yourself struggling to secure traditional funding for your homeownership dreams due to your non-traditional situation? Here at Non-QM Home Loans, our agents will take the time to do a complete overview of your situation to determine your current ability to pay. We’ll work with you to identify what type of loan might work best in your situation, and then we’ll work towards securing the documentation you’ll need to get qualified for that loan.

We don’t only cater to those who have non-traditional income situations. We also help foreign nationals, citizens with little to no documentation, individuals wanting to secure investment properties, and buyers interested in securing properties with ongoing homeowner’s association lawsuits pending. If you’re facing a different type of non-traditional situation, then our team might also be able to help you, depending on your circumstances.

Check out our customized mortgage estimator to get a better idea of the types of loans you can qualify for with us here at Non-QM Home Loans. By going through our menu, you’ll be able to select the circumstances that match up to yours and see exactly what you could be eligible to receive through our lending process.

If you’d prefer to speak with one of our agents one-on-one, then give us a call now at (800) 413-0240.