Bank Statement Loan
The solution for business owners who are having difficulty qualifying for a full document loan. Qualify without any tax returns. Qualifying income is determined based on the gross deposits into a bank account across a one or two year period.
Bank Statement Loan
The solution for business owners who are having difficulty qualifying for a full document loan. Qualify without any tax returns. Qualifying income is determined based on the gross deposits into a bank account across a one or two year period.
A Solution for Business Owners, Entrepreneurs & Self-employed
Being self-employed typically presents an issue when qualifying for a mortgage. This is simply because self-employed persons tend to report very little profit on tax returns in order to avoid paying a large of amount of taxes. When qualifying for a mortgage, this severely hinders your potential buying power if you were very aggressive with your write offs.
The solution is to utilize a bank statement loan which essentially allows you to qualify for a mortgage based on the revenue your business produces as opposed to the profit reported on taxes.
Who can qualify for a bank statement loan?
Any self-employed person can qualify for a bank statement loan. Independent contractors, gig-workers, business owners, etc., can qualify for a bank statement loan.
What are the advantages to a bank statement loan?
The main benefit using a bank statement loan is receiving a larger loan amount approval since you are being qualified based on your business's revenue as opposed to the profit.
Aside from a larger loan amount approval, bank statement loans are not subject to the scrupulous underwriting guidelines set forth by Fannie Mae and Freddie Mac, therefore this allows for a much more streamlined escrow since the papertrail is very limited. Typically, an initial approval can be sent out within one day from applying.
Full Document Loan
- Requires two years of tax returns
- Qualify based on profit reported on taxes
- Scrupulous underwriting & tougher guidelines
- Lower down payment
- Most competitive interest rates
Bank Statement Loan
- No tax returns required
- Qualify based on the gross revenue using 3, 12, or 24 months of bank statements
- Common sense underwriting
- Slightly higher interest rates
What type of properties are eligible for a bank statement loan?
Using a bank statement loan, you can purchase or refinance a primary residence, second home or investment property from 1-4 units. Single family residences, condos, townhomes and multi units up to 4 are eligible.
What are the requirements to qualify?
Qualifying for a bank statement loan is very simple, at the minimum, you'll need a 600 credit score, 10% down payment and the bank statements that'll be used to calculate your income. They can be from a personal or business account (3, 12, or 24 months).
Ready to get started?
Complete the loan application below and schedule a time for us to connect and review your application together
VirtuaLending | NMLS #2015906
Isaac Sanchez | NMLS #1992428
9267 Haven Ave, 220,
Rancho Cucamonga, CA 91730
(NMLS Lic. #2015906) Is an equal housing lender. This is not a commitment to lend or extend credit. Programs, rates, terms and conditions are subject to change without notice. Terms and conditions apply. All rights reserved. Contact us for details. Consult your accountant about tax deductions. NMLS Consumer Access