The Option for Self-Employed Borrowers
A bank statement loan is a type of mortgage that is based on the borrower’s personal or business bank statements rather than their tax returns. This type of loan is often used by self-employed borrowers who may not have a traditional salary or who have a fluctuating income, as it allows them to demonstrate their ability to make regular deposits into their bank account.
To qualify for a bank statement loan, borrowers may need to provide several months of bank statements, along with other documentation such as proof of income and employment. The lender will then review the bank statements to determine the borrower’s financial stability and ability to repay the loan.
Bank statement loans may have higher interest rates and fees than traditional mortgage loans, and they may require a larger down payment. However, they can be a valuable option for self-employed borrowers who may not qualify for a traditional mortgage.
- Based on bank statements
- Higher interest rates and fees
- Larger down payment
- Self-employed borrowers.
- Proof of income and employment
Valuable option for self-employed borrowers who may not qualify for a traditional mortgage, allowing them to demonstrate their financial stability and ability to repay the loan based on their personal or business bank statements.
