How To Qualify for a Bank Statement Mortgage Loan

To qualify for a bank statement mortgage loan, borrowers typically need to meet certain requirements, which may include:

1. Good credit score: Lenders will typically require borrowers to have a good credit score, usually a minimum of 620 or higher.
2. Significant assets: Lenders may require borrowers to have a significant amount of assets to use as collateral, such as a substantial savings account or investment portfolio.
3. Large down payment: A larger down payment can help offset the risk for the lender and increase the chances of getting approved.
4. Self-employed: Bank statement mortgage loans are typically for self-employed borrowers who cannot provide traditional forms of income documentation.
5. Bank statements: Borrowers are required to provide bank statements for the last 12 to 24 months, to demonstrate their ability to repay the loan.
6. Business documents: Self-employed borrowers may be required to provide additional documentation such as business tax returns and business licenses.
7. Property type: Bank statement loans are typically only available for owner-occupied properties and not for investment properties.

It is important to note that bank statement mortgage loans are becoming increasingly popular among self-employed borrowers, but they come with a higher interest rate, because of that it’s important to consult with a mortgage professional and understand the risks and benefits before applying for a bank statement mortgage loan.