Bank Statement Loan

Bank statement loans allow self-employed borrowers to apply for a home loan without having to provide pay stubs and W-2's from the past two years of employment.  Lenders look at the borrower's bank statements to determine if they can produce sufficient income to warrant approval for a mortgage loan.  Here's a blog that can explain more.

Interest rates for Bank Statement Loans are dependent on the borrowers’ credit score, income, down payment, and reserves. Call us today to obtain a rate quote based on your circumstances.

Like a traditional mortgage loan, you should maintain a good credit score (660 and up) to be approved for a bank statement loan.

With bank statement loans, the lender uses bank statements to analyze a borrower's income instead of using standard documentation. Lenders that offer bank statement loan programs will look at a borrower's bank over a 12 to 24 month time period to determine the borrower's net income, which is the amount of money earned after the borrower has paid taxes and business-related expenses.  Here’s a blog that helps explain this more.

NASB requires a minimum of two years of self-employment, 12 months of consecutive bank statements from the same account, up to 90% max LTV, and the borrower must have a 45% maximum debt-to-income ratio. The maximum loan amount is $1,250,000.

The qualifications for a bank statement loan may vary by lender. But in general, a borrower is required to have at least two years of self-employed income and business experience. Once a lender has determined income, they will decide the maximum loan amount allowed. This is based on the borrower’s debt-to-income ratio, a percentage of the monthly income that goes towards paying any debt they may have, including a mortgage.

A minimum loan amount of $175,000 is required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes.