Bank Statement Loan Archives - Stonebriar Mortgage

Your Questions About Bank Statement Loans Answered

If you are unable to complete the traditional full documentation loan process or you are looking for a streamlined alternative, you may be interested in our bank statement loan program.

With a bank statement loan, you do not need to prove your income using a W-2 or pay stubs. You furnish bank statements instead to demonstrate that you are financially viable.

Have questions about bank statement loans? Below, you can read through a brief bank statement loan FAQ for answers.

Q: Who can use a bank statement loan?

A: Anyone who is unable to apply for a loan with the traditional income paperwork is welcome to apply for a bank statement loan. That could include business owners, entrepreneurs, freelancers, and self-employed persons.

Investors of all stripes can also apply for bank statement loans. Doing so may be particularly useful if you invest in real estate, as you not only can get around the traditional paperwork, but also close more rapidly through the streamlined process.

Q: What do I need for a bank statement loan?

A: When applying for a bank statement loan, you do not need W-2 forms or pay stubs.

What you do need is a bank statement. Usually, this should cover 12-24 months. This becomes your proof of income.

Along with the bank statement, you need to provide verification of your identity. So, bring your social security card, driver’s license, or other identification card.

Something else you may want to bring is proof of any assets you own which could improve your borrower profile.

Finally, your credit score will be considered alongside your income and DTI ratio. So, make sure that your score is polished before you apply.

Q: Does it take longer to apply for a bank statement loan?

A: No. Actually, oftentimes, the reverse is true. It can take less time to apply for a bank statement loan since there is less paperwork to process.

Q: Is a bank statement loan different from a stated income loan?

A: A “stated income loan” typically refers to a bank statement loan. Lenders always are going to want to see some kind of proof of income, even if it isn’t with the traditional paperwork.

Q: Are bank statement loans safe and responsible?

A: Nowadays, bank statement loans are very safe. Again, the days of lenders not looking at proof of income at all are behind us. So long as a lender checks your income and you also carefully evaluate whether you can afford a mortgage, you should be good to go.

Apply for a Bank Statement Loan in Dallas Now

You probably have additional questions about bank statement loans which we may not have answered here. If that is the case, we would love to give you detailed answers during your bank statement loan consultation.

To get started, please give us a call now at (214) 669-3307. We look forward to meeting you during your consultation and walking you through the bank statement loan process.

Obtaining Approval for an Investment Property Loan

Many real estate investors or self-employed may not be able to show income to qualify for a conventional loan. Despite this, many can maintain a good credit score and financial stability, which can get them approved for other types of financing. Some conventional loans or bank statement loans may still be available to you. As you go to obtain approval for a mortgage, seek out an Investment Property Loan that can use variety of documents to prove your ability to pay the mortgage.

“No Income” Mortgages

With a “no income” mortgage, the underwriters will have to prove that you have other financial assets to pay a loan and calculate how much you can afford. Therefore, your documentation must be able to show that cash flow and funds from assets or interest will generate enough funds. Often, they will determine how much you can afford to pay on a mortgage from dividends, profit and loss statements, etc. Alternatively, you may have a hefty sum of cash to put a down payment, and so less financing is needed. There are many commercial programs for multi-unit properties that use Investment Property Loans.

Bank Statement Loans

One great way to obtain approval for an investment property loan is through a bank statement loan, these programs will include:

Ability to secure a loan for a high-value home, with high limits;

Ability to secure a loan without providing W2s or tax returns;

Ability to show a debt-to-income ratio that can sometimes reach up to 50%;

Ability to secure decent rates, with some investors securing loans in the 5% range;

Ability to use equity-based financing;

Ability to get rental, vacation, or owner-occupied homes;

Ability to use personal or business bank statements; and

Ability to secure flexible financing terms (fixed or adjustable rate).

As long as you’re able to show thorough accounting, you can apply for investment properties. Stonebriar Mortgage is here to show you more benefits to using other Investment Property Loans, contact our staff today and get started making great investments in the Dallas, TX and California Markets.