Bank statement loans are a type of mortgage that uses bank statements instead of tax returns to qualify for a mortgage loan. Non-QM mortgages are like loans with an extra “risk sticker” on them for lenders.
Unlike regular mortgages, the government (through Fannie Mae and Freddie Mac) doesn’t guarantee these loans. This means if a borrower stops paying, the lender is stuck with the problem. Because of this extra risk, both the lender and the borrower might end up in a tougher situation.
Bank statement mortgages are not no income verification loans. No income verification mortgage loans are DSCR loans used to buy investment properties. Bank statement loans instead, allow self-employed borrowers to apply for a home loan without providing tax returns, pay stubs, and W-2s.
Some people may see bank statement loans as no income verification home loans, but in reality, the income is verified through deposits in bank statements, and the lender needs to determine if the borrower can produce sufficient income to cover the mortgage loan.
The borrower can provide non QM mortgage brokers as little as 12 months of personal bank statements that show regular deposits, and even business bank statements too.
Bank statement lenders can be a good option for people who:
| Credit Score | Minimum Down Payment |
|---|---|
| 640 to 659 | 25% |
| 660 to 679 | 20% |
| 680 to 699 | 20% |
| 700 to 719 | 15% |
| 720 or higher | 10% |
| Credit Score | Minimum Down Payment |
|---|---|
| 640 to 659 | + 2.375% |
| 660 to 679 | + 1.875% |
| 680 to 699 | + 1.125% |
| 700 to 719 | + 0.125% |
| 720 to 739 | + 0.125% |
| 740 or higher | 0 |
Get preapproved. Fill out the online loan application questionnaire. Bluecastle will not run your credit until we speak with you, but this will start the process of getting preapproved.
Upload your bank statements into our portal. Your online portal will be created, so you can easily upload your documentation.
We will submit your loan. The nature of these loans often results in loan denials. To avoid this, Bluecastle has a policy of submitting the loan to the best mortgage lender for you, who will ultimately fund the loan.
Start shopping for a house. Once we get the approval, we set up your portal with your loan options, payments, cash you will need, and you can confidently start shopping for a house!
For interest-rate reasons, it is better 24 months worth of bank statements as the rate will be lower. However, if your income average is not enough to qualify for the loan, you may have to do 12 months instead.
Yes, they are. You can’t make fake bank statements for loan as you will probably get caught near the end of the loan process and just before funding. Banks and mortgage lenders do have Quality Control departments, with some banks prosecuting mortgage fraud.
-The minimum loan amount is $100,000.00, and the maximum generally is $3,000,000.00. Higher loan amounts are on a case-by-case basis.
ess than 20% down.
Bank statement home loans can be used to purchase your next home or refinance your current mortgage. There are two types of refinancing options. Rate & term refinance is often used by homeowners to get a lower interest rate and more affordable monthly mortgage payments, or you can get a cash-out to refinance, which allows you to pull equity out of your home and convert it into cash.
If you have an income source that is challenging to document using conventional methods, yes you can however, requirements can vary among lenders. For example, if you can demonstrate a consistent and stable income through your bank statements, you may be eligible for a bank statement loan.
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