A bank statement loan is a creative loan program that requires borrowers to provide the last 12 months’ bank statements instead of tax returns. Lenders will use a percentage of the average monthly deposits as the monthly income on the loan application to qualify for the mortgage. Bank statement loans are the most common mortgage used by self-employed borrowers today.

With a bank statement loan you are going to qualify based upon the 12-24 month bank deposits (depending upon the lender) into your personal and/or business accounts. The bank statement lenders want to see a consistent flow of money sufficient to qualify you for the bank statement mortgage. These loans are for self-employed borrowers who typically have substantial tax write-offs that make it challenging to demonstrate the necessary income to prove their ability to repay the loan. Getting approved for a mortgage is much easier for self-employed borrowers now that bank statement loans are available.

Before applying for any loan, it is best to consult with a local San Diego home loans and refinance expert, like Olivia Guinn, that can help you determine the best financial option for you. To get started, contact Olivia today by calling 619.227.9173. You can also complete an application online to quickly find out which lending programs you may qualify for.