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