When you are looking to take out a home loan, there are a number of documents that are required. A few of them are W-2s and tax returns. But what if these documents are not available to you? There is another way with which you can get a loan which is through Bank Statement Mortgage Loans. These are types of loans that allow you to get a mortgage without the documents that most loans need to prove your income.
These loans can be used if you work for yourself or own a business. These are also helpful if you do not have a steady income or work as a freelancer or have more than one employer who can prove your salary.
Let us learn more about bank statement home loans and how they work.
How Do Bank Statement Loans Work?
Bank statement loans don’t require your tax returns, W-2s, or employment verification forms. You can use your personal bank accounts, or business bank accounts, to prove your cash flow. The lender may require more than normal paperwork as a part of the loan process. You may have to fill out more forms and documents than required in a conventional loan as you need to prove your income.
Things that you may need for a bank statement loan are:
- 1 to 2 years of personal or business bank statements.
- You need to show your two years of self-employment history.
- A good credit score (the required score will depend on your lender).
- To cover several months of your mortgage payments, you need to have enough or other liquid funds.
- Proof of liquid assets, such as a 401(k).
- In case you have a business then your business license.
- Complete accounting details to prove your business expenses and state the fact that you file your tax returns as an independent contractor.
For Whom Is a Bank Statement Loan Good?
These loans are mostly preferred by people who don’t have a steady cash flow. They are good as the person might not be able to get proof of income from an employer. The type of people who might go for these types of loans are:
- Consultants
- Freelancers
- Small business owners
- Doctors
- Lawyers
- Real estate investors and agents
In the above professions, you might not get a normal loan, because the income on your tax returns is often adjusted. It might not reflect the true amount of income that you earn.
To Sum Up
If you are looking for a Bank Statement Mortgage Loan then Home Spring Mortgage has the answer to all your queries. We find possible adjustments to mortgage applications that enable all to get loans from us rather than being turned away as is done by larger lenders. We have made it our goal to provide loans to non-traditional borrowers by finding solutions that prove beneficial to all. Visit us for more information!
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