How Bank Statement Loans Work

Instead of relying on your tax returns, Bank Statement Loans use your monthly bank statements to calculate income. Lenders typically require 12 to 24 months of bank statements to determine an average monthly deposit, which is used to assess your ability to repay the loan. This alternative method of income verification helps self-employed borrowers demonstrate financial stability and secure mortgage approval.

Eligibility Requirements for Bank Statement Loans

To qualify for a Bank Statement Loan, you’ll need to show that your business or income streams are stable. Lenders generally require you to have a solid credit history, a good down payment (usually around 20% or more), and sufficient savings. At Savvy Mortgage Service, we help you navigate the requirements to ensure you meet the necessary criteria for loan approval.

Benefits of Bank Statements Loan

One of the primary benefits of Bank Statement Loans is the flexibility they offer for self-employed individuals and business owners. These loans allow you to qualify for a mortgage even if your tax returns don’t fully reflect your income. Since lenders use bank statements, it’s easier for many self-employed individuals to demonstrate their true earning potential.

Loan Terms and Rates

Bank Statement Loans can have slightly higher interest rates compared to traditional loans, as they represent a higher risk for lenders. However, Savvy Mortgage Service works hard to offer competitive rates and loan terms that match your financial goals. We provide flexible repayment options, allowing you to choose the loan structure that best suits your needs.

Documentation and Application Process

While the documentation for Bank Statement Loans is simpler than that for traditional loans, you’ll still need to provide at least 12 to 24 months of personal or business bank statements. Additionally, you’ll need to submit some basic documentation, such as proof of identity, property details, and employment information. Our team at Savvy Mortgage Service helps streamline this process to make it as simple and efficient as possible.

Why Choose Savvy Mortgage Service for Your Bank Statement Loan

At Savvy Mortgage Service, we understand the challenges self-employed individuals face when securing a mortgage. Our team has extensive experience working with business owners, freelancers, and independent contractors to secure Bank Statement Loans. We take the time to understand your unique financial situation and offer personalized support throughout the entire process.