Have you heard of a “bank statement mortgage?” If not, keep reading! A bank statement mortgage is something that is not incredibly well known as the majority of people do not go this route. If you do not earn a traditional paycheck via a W2, proving your income as a contractor or freelancer, etc. will not be as easy a “regular’ employee. The way to do this is by proving your income from showing a minimum of two years of regular deposits in your bank account.
Your income needs to be proved – this includes debts, savings, investments, etc. With being self employed, someone may have $1,000 worth of write-offs in a month which would decrease their income by $1,000 for the month. This may reduce your budget for what you can afford to purchase a home.
Bank statement loans have become more popular with an increase of people working from home and not working a traditional job. Getting a loan should not be a problem except for the fact that you will need to show one to two years worth of income while being self employed. The amount of money you receive will have to be substantial as well. A bank statement loan is not difficult to be approved for, again, as long as you are able to document regular monthly deposits.
Each situation is a little different so it will depend on the lender as far as what you qualify for and for the amount of time you have to provide bank statements for. Depending on the situation, a lender may want you to provide a profit and loss statement as well. This would be for a business owner specifically.
This type of situation may require some different requirements as well. For example, your down payment and credit score may be more than a more conventional loan.
If you would like to talk further about this, let us know. We would love to help you get approved!