Bank Statement Features
First-time home buyers are allowed, restrictions may apply
Bank Statement FAQ
A Bank Statement loan is a home loan program designed for self-employed/ business owners. For qualification purposes, the lender uses the deposits made into the business owner’s account as the source of income for qualification purposes, instead of using the applicant’s tax returns.
Bank Statement loans are not subprime loans. Instead, it is a secondary market loan program for Non-QM loans that qualifies the applicant’s income; however, it uses alternative ways to qualify the applicant. Many Non-QM programs like Bank Statement Loans, are designed around the lending needs of a certain market segment. Bank Statement Loans are designed for the unique lending needs of Self-employed/ business owners.
The primary difference between these loan types is that the applicant qualifies based on the deposit income in the bank statements, rather than the applicant’s tax returns.