What is a Bank Statement Loan Program?

A bank statement mortgage program allows you to verify your income on a mortgage application using documented bank deposits instead of tax forms.

Traditional mortgage loans use tax returns, W2s, and pay stubs to verify monthly income.

The higher your monthly income, the lower your debt-to-income ratio (DTI), and a lower DTI can justify a higher loan amount.

But providing those traditional employment documents will be impossible for people who don’t have full-time employers. Instead, mortgage applicants may opt for a bank statement loan program.

Loan Qualifications

We require a minimum of 12 months of bank statements. Keep in mind that applicants who can provide 24 months of statements may qualify for better rates and terms.

• Loans up to $3 million
• Two years of seasoning are required for foreclosure, short sale, bankruptcy or deed-in-lieu
• Available for purchase, cash-out or rate-term refinance
• Primary, second home, or investment properties
• Single-family, townhomes, or condos
• 12 or 24 months of business or personal bank statement submissions
• Additional documentation will be required for qualifying income and loan approval
• 1099 income option available
• Non-warrantable condos allowed
• 40-year fixed interest-only available

A bank statement mortgage allows eligible self-employed borrowers to use bank statements to help verify income instead of tax returns. A lender will use these statements to analyze income to prove the ability to repay a loan.