Bank Statement Loan
For Self-Employed Borrowers.
• Qualification is based on bank statements.
• 10% Down Payment (700+ Credit, 250k+ Loan Amount)
20% Down Payment (680-699 Credit, 250k+ Loan Amount) OR (700+ Credit, 250k- Loan Amount)
25% Down Payment (660-679 Credit, 250k+ Loan Amount)
30% Down Payment if Condo
• 660 Minimum Credit Score, or 680 if First-Time-Homebuyer
• 6 Months Reserves of PITIA (Principal, Interest, Taxes, Insurance, Association)
• 43% Maximum Debt-to-Income (DTI), or 50% Max DTI with Compensating Factors (larger down payments, large cash reserves, very low debt-to-income ratios, 720+ credit score, minimal increase in housing payment)
• 12 Months of Personal Bank Statements (no expense ratio needed)
• 12 Months of Business Bank Statements (gross income is reduced by baseline expense ratio, expense statement/P & L, or letter from CPA/Licensed Tax Preparer stating the business’ expense ratio)
• If income trend is declining and/or irregular, additional documentation may be required, including an additional 12 months of bank statements.
• Must be self-employed at least 2 years in the same business.
• Proof of at least 25% business ownership is required.
• Loan Amounts $100,000 – $3M.