BLOGBlog posted On March 13, 2025
Are you a small business owner? Worried about taking on a mortgage as a self-employed borrower? Don’t be! There are a number of home loans oriented towards entrepreneurs like yourself. We have alternative solutions for those whose tax returns don’t adequately reflect their income. Even if you don’t run your own business but you’re looking for more self-employed loan options, you’ll find this information helpful.
Qualifying with Bank Statements
A bank statement loan allows you to qualify for a mortgage without paystubs, W-2s, or tax returns. You can instead use your most recent bank statements to validate your income.
When you apply for this kind of loan, you’ll provide us with bank statements as far back as two years, including statements for personal and business accounts. So make sure you’re prepared with at least 12-24 months.
Now, let’s take a look at the different qualifications for specific bank statement loans below since we’ll be evaluating things like loan-to-value (LTV) ratio, maximum loan amount, and minimum credit score.
Types of Bank Statement Loans*
|
|
MAX LTV |
MAX LOAN AMOUNT |
MIN CREDIT SCORE |
|
Prime Bank Statement |
90% |
$3 million |
600 |
|
Edge Bank Statement |
90% |
$3.5 million |
660 |
|
Sharp Standard |
85% |
$2 million |
660 |
|
Edge Standard |
80% |
$3 million |
640 |
|
Horizon Standard |
90% |
$3.5 million |
640 |
*These products may have higher interest rates, more points, or more fees than other products requiring documentation.
This is just a small sampling of what we offer, so please reach out if you want to look at an even greater list of bank statement loans!
Benefits of Bank Statement Loans
Admittedly, bank statement loans do typically ask for higher down payments. Often, you will be required to put down 10-20%, so the requirements are higher than some conventional mortgages.
Good Candidates for Bank Statement Mortgages
Are you ready to invest in your future as a homeowner, much like you’ve invested in your business? We’re here to help trailblazers like yourself who don’t fit into the conventional financing box. Reach out to explore your home loan options, whether you want to take a look at our bank statement loans or our other Non-QM offerings.
Source: Bankrate, Investopedia
