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Bank Statement Loan: A Unconventional Option for the Unconventional Worker

Bank statement loans focus on your cash flow rather than taxable income. This alternative opens doors for borrowers who may not meet conventional income requirements.

Bank statement loans work best for:

  • Self-employed entrepreneurs
  • Small business owners
  • Freelancers and gig workers
  • Full-time real estate investors

What is a Bank Statement Loan?

The way people earn a living is evolving fast. A bank statement loan is a nontraditional choice for those who can afford a mortgage but can’t show it through traditional documentation. Simply put, we look at your bank statements to confirm you have enough cash flow to repay your loan.

I'd like to purchase
I'd like to refinance

Loan application process

Start by sharing some basic financial information and we’ll assess if a bank statement loan is an option for you based on your unique situation.

Then we’ll explain the terms you may pre-qualify for and discuss financing options. We’ll also ask for the necessary bank statement documentation.

Bank Statement Loan Requirements

  • 12-24 months of your bank statement deposits to show your income
  • Property tax and insurance documents to calculate your overall costs
  • Loan-to-value ratio depends on the property but can be up to 85% in many cases
  • Minimum credit scores vary, but 600+ is common. We review your full credit profile for a complete picture.
  • At least a 10% down payment

Bank Statement Loan FAQs

How hard is it to get a bank statement loan?

Getting approved for a bank statement loan may be easier than pre-qualifying for a conventional mortgage if you have non-traditional income sources.

Since bank statement loans rely on deposited funds rather than tax returns for verification, they can offer more flexible pre-qualifying guidelines. However, you still need to demonstrate sufficient and consistent cash flow deposits to be eligible.

Can a bank statement loan be refinanced?

Bank statement loans can be refinanced in most cases. Borrowers can typically refinance into another bank statement loan product as long as they continue to show cash flow through account deposits to pre-qualify and meet other refinancing requirements.

Are interest rates higher for bank statement loans?

To be honest, yes. Here’s why: bank statement loans are considered higher risk due to the less strict income documentation requirements. Lenders charge higher rates to compensate for the increased risk. These loans are still competitive for borrowers who may not pre-qualify for lower conventional financing rates.

Bank Statement Loan Benefits

Financing based on bank account deposits

For self-employed or gig economy investors

No tax return income verification needed

Fast and efficient loan process

Flexible term-length options

Purchase and cash-out refinance options

GET STARTED

Are you ready to speak with someone right now? Call us at (855) 476-5870.

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