A Bank Statement Mortgage is a unique product created for self-employed borrowers. This type of mortgage uses the borrowers bank statements to help determine their income. Some businesses operate with high expense ratios and even if their gross income is high, after deducting expenses their net income may not be enough to qualify for their desired mortgage loan.

When net income is not sufficient, a self employed borrower’s bank statements can be utilized. Bank deposits are counted as income with this type of loan. In some cases only 3 months of bank statements are required but in most cases 12-24 months of bank statements are needed to qualify for a mortgage. This type of mortgage is also called a Non Qualified mortgage in the securitization world.

This type of mortgage is reserved for Self Employed persons only. For this unique mortgage loan,  a W2 is not an acceptable income source. Also of importance, conventional loan limits do not apply since they are not regulated by the FHFA.

• Typically 12-24 Months of Bank Statements Needed
• No W-2 or Paystubs allowed
• Must Be Self-Employed
• 30 year fixed mortgages
• 5 and 10 year fixed Adjustable Mortgages

The professionals at Integrated Lending Group are highly experienced at analyzing the unique situation of each self-employed borrower in California and identifying the best mortgage for them.

Bank Statement Mortgages typically carry a higher interest rate due to the nature of the program and the extra layer of risk the investors of these types of loans feel they carry.  If you are self-employed and turned down for a traditional mortgage, you could have a good chance of qualifying for a bank statement mortgage.