Bank Statement Loans Near Me

What Are Bank Statement Loans?

Bank statement loans are for people who don’t have traditional income verification documents like pay stubs or W-2s but can prove their financial stability through their bank deposits. These loans are perfect for self-employed, freelancers or entrepreneurs who have irregular income but can show steady cash flow through their personal or business bank statements.

Instead of using tax returns, lenders will evaluate bank statements over a 12-24 month period to determine income and make sure the borrower can pay back the loan. This loan is popular among those with fluctuating income but have the financial capacity to get a mortgage.

Bank Statement Loans Features:

• Income verified through bank deposits: Lenders use personal or business bank statements to verify income rather than traditional employment verification.
• No tax returns required: Unlike traditional loans, borrowers don’t need to provide tax documents or W-2s.
• Flexible loan terms: Available as fixed or adjustable rate mortgages depending on borrower needs.

When to Use Bank Statement Loans?

Bank statement loans are designed for self-employed borrowers, freelancers or business owners who may not have regular paychecks but can show consistent deposits through their bank accounts. Here are the common situations where a bank statement loan might be a good fit:

1. Self-employed: If you own your own business and can show consistent cash flow through your bank statements, this loan is for you.
2. Freelancers and gig workers: Independent contractors, freelancers or those with multiple income streams often find it hard to meet traditional mortgage criteria. A bank statement loan allows them to qualify based on their deposits rather than traditional employment records.
3. Business owners: Entrepreneurs whose businesses generate a lot of income but have complex or fluctuating financials can benefit from bank statement loans which focus on actual deposits rather than net income on tax returns.

If you’re self-employed or have non-traditional income, a bank statement loan is a flexible way to get a mortgage based on the money flowing into your bank account.

Bank Statement Loans Benefits

Bank statement loans have many advantages for borrowers with alternative income sources:

• No tax returns or pay stubs required: The biggest benefit is you don’t need to submit traditional income documentation like tax returns or W-2s. Instead, lenders will look at your bank statements to assess your financial health.* Flexible qualification: Bank statement loans are perfect for self-employed or those with fluctuating income as they offer flexibility by focusing on actual deposits.
• Customizable loan terms: Borrowers can choose from various loan types, fixed-rate and adjustable-rate mortgages, to fit their financial situation.
• Cash flow considered: Lenders look at gross bank deposits, so you may qualify for a larger loan than you would with a traditional mortgage based on net income.
• For multiple income streams: If you have income from multiple sources, such as multiple businesses or freelance work, a bank statement loan allows you to combine those deposits to qualify.

Bank Statement Loan Considerations

While bank statement loans offer flexibility, they also have a few trade-offs compared to traditional loans:

• Higher interest rates: Since bank statement loans have more risk for the lender (due to non-traditional income verification), interest rates are higher than conventional mortgages.
• Larger down payment: Borrowers need to put down 10% to 20% of the home’s value to qualify for a bank statement loan. Lenders may require more depending on your financial situation and the loan amount.
• Minimum bank statement period: Most lenders require 12-24 months of bank statements to prove consistent income, so you need to demonstrate stable cash flow over a longer period.
• Tighter credit requirements: Lenders may require a higher credit score, 620 and above, to qualify for a bank statement loan. If your credit score is lower, you may face higher interest rates or need to provide additional documentation.
• More documentation: Even though tax returns and pay stubs aren’t required, lenders will closely examine your bank statements. You need to provide clean and organized records of your deposits and may need to explain large or unusual deposits.

Before applying for a bank statement loan, make sure your finances are in order and you can meet the documentation and down payment requirements.

Is a Bank Statement Loan for You?

A bank statement loan might be right for you if:

• You’re self-employed or own a business and don’t have traditional income verification documents.
• You have steady cash flow and can provide 12-24 months of bank statements showing consistent deposits.
• You’re okay with larger down payment and potentially higher interest rates for more flexible qualification terms.* You have multiple income streams and want to combine them to get a mortgage.

Bank statement loans are for those with non-traditional income sources to get a mortgage without tax returns or pay stubs.

Apply for a Bank Statement Loan

Applying for a bank statement loan requires organized bank records and understanding of your financial situation. At Keyswag Lending, we help self-employed borrowers and those with complex financial profiles get bank statement loans.

Here’s how we can help:

1. Initial consultation: We’ll review your financial situation, bank deposits, credit score and down payment ability to determine if a bank statement loan is right for you.
2. Customized loan options: We have various bank statement loan programs so you can choose the one that fits your financial profile and homeownership goals.
3. Documentation preparation: We’ll guide you through the process of gathering and organizing your bank statements and other required documents to make the application process smooth.
4. Quick approval process: We work with lenders who are bank statement loan specialists so you get quick and efficient approval to get your mortgage without delays.

At Keyswag Lending, we help self-employed individuals and those with non-traditional income sources get the loans they need to buy or refinance their homes.

Get Started?

Ready to apply for bank statement loans? Contact us today for a free consultation. We’ll help you navigate the process and get the financing you need based on the strength of your bank deposits rather than traditional income documentation.