Bank statement Loans are a type of home loan designed for self-employed individuals who may not have traditional income documentation, such as W-2 forms or tax returns, to demonstrate their ability to repay a mortgage. These loans are especially useful for small business owners, freelancers, and others whose income fluctuates or is not easily verifiable through traditional means. Here are some key features and considerations for Bank Statment loans:
- Contract Duration: Typically 21 to 25 days from offer acceptance to closing, offering a relatively quick turnaround.
- Credit Score Requirements: Minimum 680, best for 740 and above.
- Down Payment: as low as 5% down payment, more favorable rates with higher down payment. 20% down payment is recommended.
- Income Calculation: Requires 12 or 24 months of business or personal bank statement.
- Compensation: Both lender and Borrower paid compensation