Bank Statement Home Mortgage Loans

12 or 24-month Bank Statement Loan –

Primary Residence

10% down (90LTV). 680 minimum score. 

15% down (85LTV). 660 minimum score. 

 Lower credit scores are allowed with more down payment. We can also do refinances with bank statements.

Second Home and Rental Properties require 20% down minimum

Typically, at least 3 months of the new payment amount must be in your bank, retirement or stock account as “reserves” at close of escrow. Higher loan amounts require more reserves.

Maximum DTI (debt to income ratio) 50%, or up to 55% with “compensating factors”, such as extra reserves, your new payment is no more than 10% higher than current payment/rent, 3 years or more with current employer, high credit scores.

Full Interior / Exterior appraisal required.

12 months housing history is required or or rent free letter is required when a 12 month housing history is not applicable

Gift funds are allowed for funds to close, although Applicant must have 5% of their own money.
100% Gift Funds are allowed with a maximum LTV/CLTV of 75%. Borrower(s) must meet the reserves requirements.

The business must have a minimum two-year operating history with one of the following; a letter from either the businesses tax professional, regulatory agency or licensing bureau, certifying two-years of self-employment in same business.

Verify that the business is active and operating with either a phone listing and/or business address using directory assistance or internet search e.g. Facebook (Independent Contractors with income reported on 1099s exempt from requirement).

Borrowers must own a minimum of 25% of business to be considered Self-Employed, for use of personal bank statements.

Typically, you should own at least 50% of a business to use business bank statements.

Self Employed/Wage Earner Combination – A Co-Applicant who is a W2 employee may be on the loan with a self-employed borrower.

Property Types: Eligible: Single Family Residences, 1-4 Units, PUDs, Townhouses, Condominiums.

Ineligible: • Acreage greater than 10 acres (appraisal must include total acreage) • Agricultural zoned property • Condo hotel • Co-ops • Hobby Farms • Income producing properties with acreage • Leaseholds • Log Homes • Manufactured housing • Mixed use properties • Modular homes

Loans with just one-year of tax return loans are also available with 15% down and a 680 score. 20% down with a 660 score.

This is NOT a “stated income” loan. You must prove that you can afford the payment using bank statements to show good cash flow.