A Bank Statement loan is a mortgage that uses bank statements instead of tax returns to verify income. It's also known as a self-employed mortgage or alternative income verification loan. Tax returns are not required. Mortgage Insurance is not required. Loan amounts up to $4,000,000 dollars.
Bank Statement loans offer several advantages. First, they often have more flexible terms and have comparable interest rates, with no mortgage insurance. Additionally, bank statement loans also allow for higher loan amounts making them suitable for financing higher-priced homes. Closings are typically faster based on the fact there is less documentation required
It is possible to obtain a Bank Statement mortgage loan with a down payment as low as 10%. While conventional loans traditionally require a larger down payment, some borrowers may qualify to purchase a home with a 10% down payment. Bank statement loans do not have mortgage insurance.
To qualify for a Bank Statement loan, you generally need a good credit score (usually above 620), be self employed for 2 years, and a manageable debt-to-income ratio. Other factors, such as your income, assets, and the property's appraisal value, will also be considered. Specific requirements may vary, so it's essential to consult with a mortgage professional to determine your eligibility.
Non-QM loans can be an excellent choice for many homebuyers. They often offer competitive interest rates, term flexibility, and the ability to finance various property types. However, whether a conventional loan is the best option depends on your financial situation, credit history, and preferences. Non-QM loans offer flexibility for borrowers that are self employed, 1099 borrowers, retired borrowers with large assets, or higher loan amount for higher priced homes. There is never any mortgage insurance required. It's always a good idea to explore multiple loan options and consult a mortgage professional to determine the best fit for your needs.
There are several options available to help cover closing costs with your Non QM Bank Statement loan:
It is possible to obtain a Non-QM loan if you owe taxes, but it depends on several factors. First, it's important to understand the difference between owing taxes and having a tax lien. Owing taxes means you owe money to the IRS and/or a state, while a tax lien occurs when your unpaid taxes result in collection actions. Having an IRS lien on your income or assets can significantly decrease your chances of being approved for a conventional mortgage.
Communicate openly with your mortgage professional to guide you through the loan application process and help you explore potential solutions or alternatives.
