Bank Statement Loan – Lendexa Mortgage

Bank
Statement Loan

Great For Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers Self-Employed Buyers

Benefits

Designed specifically for individuals with non-traditional income
Simplified income verification process
Provides access to homeownership for those who might not qualify
Offers flexibility and options that are often not available with traditional mortgages

Eligibility

Are you self-employed? A freelancer or a business owner with an irregular income? If you’ve ever tried to secure a traditional mortgage, you probably know the uphill battle all too well. But what if there was an easier way, a lifeline in the choppy waters of home financing? Say hello to bank statement mortgage loans, your key to unlocking your homeownership dreams.

What is a Bank Statement Mortgage Loan?

A bank statement mortgage loan is a unique type of home loan designed to cater to those with non-traditional income sources. Instead of requiring W-2s or pay stubs, lenders use your bank statements to verify your income. It’s a simple and straightforward process that opens up the door to homeownership for many who might not qualify for traditional loans.

How Does a Bank Statement Mortgage Loan Work?

AT JVM Lending, we typically look at 12 to 24 months of your bank statements to determine your average monthly deposits, which we then use as your qualifying income for the loan. This approach makes these loans an excellent option for self-employed individuals, freelancers, and business owners.

Core Benefits of a Bank Statement Mortgage Loan

Bank statement mortgage loans offer several unique advantages:

Designed for the Self-Employed: These loans cater specifically to self-employed individuals, acknowledging their unique income streams and providing a feasible path to homeownership.
Reduced Mortgage Insurance: With this loan, mortgage insurance premiums are reduced from the full “coverage” amount typically required.
Access to Homeownership: It opens the door to homeownership for individuals who may not qualify for traditional mortgages due to their non-traditional income sources.
Flexibility: These loans offer a level of flexibility that is often lacking in traditional mortgages, making them an attractive option for many borrowers.

We encourage you to connect with a mortgage expert at Lendexa mortgage to receive your own personalized loan scenario and talk through your various options.

Eligibility Requirements for a Bank Statement Mortgage Loan

While bank statement mortgage loans offer a great opportunity, they come with certain eligibility requirements:

Proof of Self-Employment: You should be able to provide proof of self-employment for at least two years. This could include business licenses, tax returns, or other official documents.
Credit Score: A minimum credit score of 660 is generally required, but this can vary by lender. The higher your score, the better your chances of approval.
Debt-to-Income Ratio: Your debt-to-income ratio, which compares your monthly debt payments to your gross monthly income, should ideally be under 43%.
Reserves: Lenders often require borrowers to have reserves, or funds that could cover several months of mortgage payments. Typically, having three to six months’ worth of reserves is a common requirement.

Bank statement mortgage loans are designed with the unique financial situations of these individuals in mind, thus offering a tailored solution that could make your homeownership dreams a reality.

Bank Statement Mortgage Rates

While bank statement mortgage loans offer a lifeline to self-employed individuals, it’s important to understand that they generally come with higher interest rates compared to conventional loans. The specific rate can greatly vary and is contingent on factors like the lender you choose, your creditworthiness, among other conditions.

Frequently Asked Questions

What do lenders look for in my bank statements?

Lenders typically examine 12 to 24 months of your bank statements to determine your average monthly deposits. This average is then used as your qualifying income for the loan.

Do bank statement mortgage loans require a down payment?

Yes, bank statement mortgage loans often require a larger down payment than traditional loans. You can generally expect to put down at least 10% of the home’s purchase price.

Can I use a bank statement loan to buy any type of property?

Yes, bank statement loans can typically be used to buy a variety of properties, including primary residences, second homes, and investment properties. However, the terms and requirements may vary based on the property type and lender’s guidelines.

Do I need a high credit score to qualify for a bank statement mortgage loan?

While the exact credit score requirement can vary between lenders, a minimum score of 660 is generally required for a bank statement mortgage loan. The higher your score, the more likely you are to be approved and receive favorable loan terms.

What counts as proof of self-employment for a bank statement mortgage loan?

Proof of self-employment can be demonstrated through two years of business licenses, tax returns, or other official documents. The specific documents required may vary by lender.

What if my income fluctuates month to month?

Lenders understand that self-employed individuals may have income that varies from month to month. They will look at your bank statements over a period of 12 to 24 months to determine your average monthly deposits, which is used as your qualifying income.

What happens if I don’t have enough reserves?

Reserves are crucial as they are your safety net in case of financial difficulties. If you don’t have enough reserves, it may affect your loan approval. Lenders typically require three to six months’ worth of mortgage payments in reserves, but this can vary.

Take the Next Step with Lendexa Mortgage

At JVM Lending, we have a highly experienced team that specializes in diverse mortgage loan products, including bank statement loans. We are committed to offering competitive rates while ensuring a personalized service experience to each of our clients. We are equipped with the knowledge and skills to guide you through the complexities of the loan process and will be your trusted partner throughout your homeownership journey.

Our team at Lendexa mortgage is here to guide you every step of the way. Start your Lendexa mortgage loan application online or contact us today to discuss your home investment goals and learn more about how a bank statement mortgage loan could be the key to unlocking your homeownership dreams.