Curious about how Bank Statement Loans are calculated? We are a leading mortgage company specializing in bank statement mortgages. We understand that self-employed individuals, business owners, entrepreneurs, and investors often face challenges when it comes to proving their income without traditional pay stubs or tax returns that accurately reflect their true earnings.
- A bank statement loan allows you to use your bank statements to demonstrate loan repayment ability.
- When applying for this loan, experienced processors analyze total bank account deposits over 12 or 24 months.
- The total is divided by 12 or 24 to establish your average monthly income.
- Self-employed borrowers can choose between using 12 or 24 months of bank statements.
- Additional requirements include a minimum of two years of self-employment history, or one year in the same role or industry.
- How you pay yourself affects the deposits used to calculate income for a home loan.
- Transferring money from a business to personal accounts may count as 100% of qualifying income.
- Depositing money from a business to personal accounts typically accounts for around 50% of income.
It’s important to note that monthly deposits are not always required. If you have seasonal income, such as earning $100,000 in just three months, we will divide that amount by 12 (the number of months in a year) to calculate your average monthly income. As long as your bank statement deposits demonstrate that you earn enough to comfortably repay your loan balance each month, your income will help you qualify for a bank statement loan. If you’re unsure whether your bank statement deposits are sufficient, you can use our bank statement loan calculator or speak with one of our loan specialists to determine if you’re ready to apply for a mortgage.
We specialize in helping individuals with non-traditional income sources secure the financing they need. Contact us today to learn more about our bank statement loans and how we can assist you in achieving your homeownership goals.
