A bank statement loan is a type of mortgage designed for self-employed individuals or those with non-traditional income sources who may not have the standard documentation required for traditional loans. Instead of providing tax returns and W-2s, borrowers can use their bank statements to verify income.
Bank statement loans can be a great option for those with non-traditional income streams looking to purchase or refinance their home.
Key Features of Bank Statement Loans
- Income Verification: Borrowers typically provide 12 to 24 months of personal or business bank statements to demonstrate their income. Lenders analyze deposits to calculate average monthly income.
- Flexible Qualification: These loans can be more accessible for self-employed individuals, freelancers, and gig economy workers who might not have consistent paychecks.
- Credit Requirements: While credit requirements can vary, borrowers usually need a good credit score to qualify.
- Higher Interest Rates: Due to the increased risk associated with these loans, interest rates may be higher than traditional mortgage products.
- Down Payment: A larger down payment may be required compared to conventional loans, often ranging from 10% to 20% minimum.
- Loan Types: Bank statement loans can come in various forms, including fixed-rate and adjustable-rate mortgages.
Pros:
- Easier for self-employed borrowers to qualify.
- Similar processing times to traditional financing.
- More flexible income verification methods.
Cons:
- Higher interest rates compared to conventional loans.
- Potentially larger down payment requirements.
- Limited availability, as not all lenders offer these loans.
BANK STATEMENT LOANS for Mustang, Tuttle, Newcastle, Blanchard, Norman, Moore, Choctaw, Deer Creek, OK & Beyond
A lot of documents are involved in the mortgage application process. But, depending on the type of job you have, you may not be able to provide all of the traditional documents that prove your income. That shouldn’t stand in the way of securing a mortgage that works for your finances, goals, and budget.
At Local Lending Oklahoma, our mortgage experts specialize in something called a bank statement loan, which is also known as an “alternative documentation” loan. These loans are especially helpful for people who are self-employed, own their own business, or have more than one employer. You can use bank statements and other personal documents to prove your income, as opposed to tax forms and W-2s from conventional jobs.
As long as you have the finances, our mortgage lenders can help you get on the right track with a bank statement loan. We encourage you to connect with us today to learn more about the bank statement loans we offer or to get started with a free quote! It is our pleasure to offer these bank statement loans to those throughout the Edmond, Piedmont, Yukon, Mustang, Tuttle, Newcastle, Blanchard, Norman, Moore, Choctaw, Deer Creek and Oklahoma City, OK area.