Bank statement mortgage loans offer a flexible financing solution for self-employed individuals and others with non-traditional income sources. Instead of relying on traditional income verification methods like W-2s or tax returns, these loans use bank statements to assess a borrower’s financial stability.
To apply for a bank statement mortgage, you’ll need to provide the following:
* Business Description Letter
A handwritten letter detailing the nature of your business, the income it generates, and an explanation of your expenses, including the expense factor.
* Verification of Self-Employment Business Documentation
If you’re self-employed or own a business, you may need to provide business licenses, articles of incorporation, or partnership agreements to verify your business’s existence and ownership.
A letter from a Certified Public Accountant (CPA), tax preparer, or licensing bureau confirming at least two years of self-employment.
* Bank Statements:
Personal and/or business bank statements covering the last 12 to 24 months, depending on the lender’s requirements.
* Form SS-89
A completed and wet-signed SS-89 form is required.
* Proof of Identity
A valid form of identification, such as a driver’s license, passport, or government-issued ID.
* Proof of Physical Address
Documents like utility bills, lease agreements, or bank statements that show your name and current address.
* Additional Income Documentation (supplement Ability to Repay)
While bank statements are primary, some lenders may request supplementary documents like tax returns, profit and loss statements, or 1099 forms to support your income claims.
* Asset Documentation
Statements from bank accounts, investment accounts, or property ownership documents to demonstrate financial stability.
* Credit Information
Lenders may request your credit report or authorization to obtain it to assess your creditworthiness.
Why Choose a Bank Statement Mortgage?
Bank statement mortgages are ideal for:
Self-Employed Borrowers, Business owners, freelancers, and independent contractors who may not have traditional income documentation.
Individuals with Non-Traditional Income
Those whose income comes from various sources or fluctuates monthly.
Borrowers Seeking Flexibility
Those who prefer a loan process that considers their actual cash flow over standard documentation.
Cornerstone Mortgage Group
By focusing on your bank statements, lenders can assess your financial health more holistically, offering a path to homeownership that aligns with your unique financial situation.
Available in the Following States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Utah, Virginia, and Washington.