Bank Statements
Loan Program
Loan Program
Call Me TODAY: +1 (954) 552 2959
Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS1561169
Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS1561169
Bank Statements Loan Program
Our 12 or 24 Month Bank Statements Loan programs are perfect non-standard loan options for self-employed individuals who are unable to document their income with tax returns. To qualify for this loan, you'll provide the 12 or 24 most recent consecutive months of Business or Personal Bank Statements.
What is a Bank Statements Loan Program?
Bank Statements Loan Program is a type of loan program where we use bank statements instead of traditional income documentation (such as tax returns or W-2 forms) to assess your income and determine your eligibility for a loan. This type of program is great for self-employed individuals who may not have consistent pay stubs or tax documentation to verify their income.
In a Bank Statements Loan, you will provide 12 or 24 months of bank statements to us, and we will analyze your income and expenses. We will look at factors such as average monthly deposits, recurring expenses, and overall account activity to assess your financial stability and ability to repay the loan.
This program is very beneficial for individuals who have sufficient income but may not meet the traditional requirements for income documentation. However, it also comes with a higher interest rate as it poses higher risk for the lender due to the lack of traditional income verification.
In a Bank Statements Loan, you will provide 12 or 24 months of bank statements to us, and we will analyze your income and expenses. We will look at factors such as average monthly deposits, recurring expenses, and overall account activity to assess your financial stability and ability to repay the loan.
This program is very beneficial for individuals who have sufficient income but may not meet the traditional requirements for income documentation. However, it also comes with a higher interest rate as it poses higher risk for the lender due to the lack of traditional income verification.
What are Bank Statements Loan Program Requirements?
- Program designed for Primary, Second Home, and Investment occupancy for up to 4 units
- Condominiums with Recreational Lease and Condotels are allowed (restrictions apply)
- Minimum down payment is as low as 10% (restrictions apply)
- Credit score as low as 599 (restrictions apply)
- Full two years of business history is required (self-employment if 1099)
- 12 and 24 most recent consecutive months of Business and Personal bank statements are required for the income calculation
- Gift funds allowed (restrictions apply)
- The borrower will be required to demonstrate 3 months reserves (future all-in monthly payment for the property he/she will be buying X 3)
- No prepayment penalty on Primary Residence and Second Home Occupancies
- Closing costs (bank services, title company services, government fees, transfer tax, appraisal, prepaid home insurance, and home tax) will add up anywhere around 5-7%
- Cash-out refinance available with this program.
What documents are needed for a Bank Statements Loan pre-approval?
- Copy of Driver License & Social Security Cards
- Copy of both sides of the Green Card/Work Authorization Card
- Most recent consecutive 12 or 24 months Business or Personal Bank Statements
- Letter from CPA or Licensed Tax preparer stating the nature of the business, years in the business, and expense ratio %
- Two most recent 12 or 24 Bank Statements to document available funds for the down payment, reserves, and closing costs
What are Bank Statements Program Loan Limits?
The loan amount for our Bank Statement Loan Program ranges from a minimum of $100,000 up to $4 million (restrictions apply). This allows for flexibility in financing options, catering to a wide range of property values and borrower needs. Whether you're seeking a smaller loan for your primary residence or a larger investment loan for multiple units, our program is designed to accommodate various financial scenarios
What are Bank Statements Loan Rates?
Bank Statement Loan rates can vary depending on several factors, including your credit score, loan-to-value ratio, loan amount, and current market conditions.
Typically, Bank Statement Loan rates may be 1%-1.5% higher than rates for standard loan programs as they involve a higher level of risk for the lender due to the alternative income verification method. However, it's essential to note that rates are subject to change and may fluctuate until the loan is locked
Typically, Bank Statement Loan rates may be 1%-1.5% higher than rates for standard loan programs as they involve a higher level of risk for the lender due to the alternative income verification method. However, it's essential to note that rates are subject to change and may fluctuate until the loan is locked
Conventional Loan vs Bank Statements Loan?
Conventional Loans and Bank Statements Loans are two mortgage options with differing characteristics and eligibility criteria.
Conventional Loan:
Bank Statements Loan:
In summary, Conventional Loans offer more flexibility in terms of credit score requirements and property eligibility but may require higher credit scores and possibly PMI. Bank Statements Loans, on the other hand, are suitable for borrowers with non-traditional income sources but come with higher interest rates. The choice between Conventional and Bank Statements Loans depends on factors such as credit score, income documentation availability, and individual financial circumstances.
Conventional Loan:
- Offered by private lenders without government backing
- Generally requires a higher credit score, typically around 620 or higher
- May require private mortgage insurance (PMI) if the down payment is less than 20% of the home's purchase price
- Offers various loan amounts and repayment periods for borrower flexibility
- Interest rates can vary based on market conditions and borrower creditworthiness
Bank Statements Loan:
- Designed for borrowers with non-traditional income sources or lower credit scores
- Requires providing 12 or 24 months of business or personal bank statements instead of traditional income documentation like tax returns
- Offers flexibility for self-employed individuals who may not have consistent pay stubs or tax documentation
- Comes with higher interest rates compared to Conventional Loans due to the increased risk for the lender
In summary, Conventional Loans offer more flexibility in terms of credit score requirements and property eligibility but may require higher credit scores and possibly PMI. Bank Statements Loans, on the other hand, are suitable for borrowers with non-traditional income sources but come with higher interest rates. The choice between Conventional and Bank Statements Loans depends on factors such as credit score, income documentation availability, and individual financial circumstances.
Conventional Loan Rates vs Bank Statements Loan Rates?
Conventional Loan Rates and Bank Statements Loan Rates refer to the interest rates associated with two distinct types of mortgage loans.
Conventional Loan Rates:
Bank Statements Loan Rates:
Conventional Loan Rates:
- The interest rates for Conventional Loans can fluctuate based on various factors such as the borrower's credit score, loan amount, and prevailing market conditions
- These rates are influenced by broader economic factors like inflation rates and decisions made by the Federal Reserve
Bank Statements Loan Rates:
- The interest rates for Bank Statements Loans tend to be higher compared to Conventional Loans due to the increased risk for the lender.
- These rates may vary depending on factors such as the borrower's creditworthiness and the lender's assessment of risk.
Why choose my team & I?
- #1. Transparency is paramount in your home buying journey. I ensure a clear understanding of the entire process, from application to closing, while Lending Capital Group INC guarantees straightforward communication, no hidden fees, and no surprises. You'll be well-informed and confident at every stage.
- #2. Your dream home is within reach with our Low Down Payment Programs starting at 3%. I understand the importance of affordability, offering options that make securing your first home easier without straining your budget.
- #3. Your financial well-being matters to me. At Lending Capital Group INC, we secure competitive interest rates, ensuring that you get the best possible terms and save money over the life of your mortgage.
Ready to turn your homeownership dreams into reality?
Contact me TODAY, and let me be your trusted partner as you take the exciting step into homeownership. Welcome home!
Contact Me
Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS 1561169
+1 (954) 552 2959
opalmer@lcgloans.com
Sr. Loan Officer NMLS 1561169
+1 (954) 552 2959
opalmer@lcgloans.com
