Self-employed individuals often face difficulty in obtaining a mortgage loan due to their lack of steady income and irregular income patterns. However, bank statement mortgage loans present a viable solution for these individuals.
What Are Bank Statement Mortgage Loans?
Bank statement mortgage loans are a type of financing option designed specifically for self-employed individuals. Unlike traditional mortgages, which require documentation of income, bank statement mortgage loans allow lenders to use a borrower’s bank statements to verify their income. This makes it easier for self-employed individuals to qualify for a mortgage loan since they don’t have to provide lengthy tax returns or other proof of income.
What Are the Requirements to Get a Bank Statement Mortgage Loan?
To qualify for a bank statement mortgage loan, there are a few basic requirements that must be met. First and foremost, you must have a good credit score. Lenders typically look for a score of at least 680 in order to approve a loan. Additionally, you must have a steady source of income that can be verified through bank statements. The amount of income must be sufficient to cover the loan payments.
In addition to the basic requirements, lenders may also require additional documentation before approving a bank statement mortgage loan. This includes proof of employment, such as a letter from your employer or a pay stub. You may also need to provide bank statements for the past two years, as well as recent tax returns. Finally, you may need to provide a letter of explanation if there are any large deposits or withdrawals on your bank statements.
What Are the Benefits of Getting a Bank Statement Mortgage Loan for the Self-Employed?
- No Tax Returns Needed. With a bank statement mortgage loan, self-employed individuals do not have to provide tax returns to prove their income. This makes the application process much easier and less time-consuming than with a conventional loan.
- Flexible Qualifications. Bank statement mortgage loans are more flexible in terms of qualifications and requirements. For example, self-employed individuals may not have to provide a minimum credit score or a minimum down payment, which makes it easier for them to obtain a loan.
- Quicker Approval. Since the application process is simpler and less paperwork is required, bank statement mortgage loans can be approved much more quickly than conventional loans. Self-employed individuals can obtain a loan in as little as two weeks or less in some cases.
- Low Rates. Bank statement mortgage loans typically offer lower interest rates than conventional loans. This makes them a more affordable option for self-employed individuals.
- Variety of Loan Types. In addition to the more traditional loan types, banks offer a variety of other loan types that are tailored to self-employed individuals. These include loans with no income verification, loans with no down payment, and loans with no closing costs.
Conclusion
All in all, bank statement mortgage loans are great for any self-employed individuals thanks to the benefits it offers. However, one must still take time to look for the right lender and also compare options from different lenders. This way, one can get the best mortgage solution that they need to finally own their dream home.
Get In Touch With Your Mortgage Expert Today!
America’s Mortgage Solutions is your home loan expert, dedicated to helping you enjoy a smooth and successful home purchase and refinance experience. If you are looking for a home loan in North Palm Beach, call us today at (561) 316-6800 to schedule a consultation!
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