Bank Statement MortgagesBank Statement Loans are considered alternative income documentation and therefore falls into the Non-QM mortgage category and Alt Doc sub-category. These are documents that serve as paperwork to help a reasonable underwriter substantiate the approval while at the same time meeting the standard requirements of what is the Ability-to-Repay Rule.
Bank Statement Mortgage provide self-employed borrowers (C corporations, S corporations, LLC, 1099 sole proprietors) and W-2 commission business professionals) a practical means to buy a home or refinance an existing mortgage without producing the traditional income documents. Documents that include personal tax returns, business tax returns, profit & loss statements, W-2's, paycheck stubs, award letters, rental agreements, Schedule C's, etc.
Bank statement purchase loans are designed to increase the buying power of the under-served, self-employed borrower by utilizing multiple business and or personal account statements to reflect your TRUE business "income"/revenue. Alt Doc provide a solution to the real estate finance dilemma and the answer to the impracticable Full Doc expectations put upon self-employed people.