Bank Statement Loans 

 December 18, 2021

By  Benjamin Borden

Getting a Mortgage can be hard for Self Employed Borrowers.

You're self-employed, and you need a mortgage to buy your dream home. But the banks won't lend you money because they don't believe that you make enough money to qualify for a loan. Often times you can not get a home loan if you need show proof of your income. Enter a Bank Statement Loan! Maybe you have a lot of assets but that does not reflect to the bottom of your 1040 tax return. Most people use their W-2's as proof of income, but that doesn't work for entrepreneurs, freelancers, small business owners or independent contractors.

With a bank statement home loan, the lender uses bank statements from your checking and savings accounts. Lenders look over the last 3 or 12 to 24 month period in order to determine the borrower's net income. This type of mortgage is perfect for self-employed individuals and small business owners. Those who do not receive regular payroll checks from employers but still need access to credit for major purchases such as real estate.

The good news is that more lenders are beginning to offer this type of home financing program because of its low-risk nature (the loans are backed by assets and larger down payments) and high approval rate with borrowers who meet the qualifications.

Bank Statement Loan Features

  • Bank statement loans are perfect when you're self employed or own your own business. This type of loan requires only the bank statements from the past 12 months to determine if you can produce sufficient income to warrant approval for a mortgage loan.
  • Through NEXA Mortgage most all of our investors loan up to at least $5 million. We have some that can go as high as $10 million too! There is never any PMI or Private Mortgage Insurance on our bank statement loans.
  • You can use bank statement loans to buy primary residences along with second homes, vacation homes, or investment properties.

All bank statement loans are not created equal so tread carefully. For instance, typical mortgage lenders like Rocket Mortgage do not offer Bank Statement loans, North American Savings Bank or NASB offers bank statement loans but they are higher down payments, require higher credit scores, only go to $1 million and have private mortgage insurance. Could you imagine the mortgage insurance cost on a $800,000 or $900,000 loan? So much for a low rate right? Add that cost in. Other lenders like Angel Oak have higher rates, high expense factors and do not lend on rural properties. 

If you want a one stop shop, one that represents over 160 lenders and investors, with the lowest bank statement mortgage rates and lowest down payment available and will know exactly who is the best fit for your specific situation look no further and apply today with NEXA Mortgage.

About the author

Benjamin Borden

Ben Borden is a visionary with over 30 years of real-world experience in the financial industry as a financial advisor at ANNUVA Financial and mortgage loan officer/branch manager with NEXA Mortgage throughout the Southeast. Ben has a strict focus on retirement income and strategies, he is committed to increasing an individual's and a retirees' income, assets, and overall economic well-being.

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