How to Apply for a Mortgage Using Bank Statements

Nontraditional Mortgages
Need a mortgage that doesn't rely on tax returns or W-2s? This Non-QM product will help.
Published on
July 27, 2023
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If you’re self-employed, you may have trouble getting a mortgage through traditional methods. The same goes for investors who rely on investment income to make payments on their homes. Bank statement mortgages can help both groups qualify for new home loans or refinances using only personal and business bank statements instead of tax returns.

You may be able to qualify for a mortgage with a bank statement loan.

Bank statement loans are a type of mortgage that uses your income and expenses as reported on bank statements to qualify you for a home loan. Banks use these types of loans because they're quick, easy and cheap to administer, so if you want to buy a home but don't want to wait for the traditional process (mortgage preapproval), this could be an option for you.

Bank statement mortgages are available only from some lenders--not all banks offer them. Just send in copies of your latest three months' worth of monthly statements showing all deposits (including cash) and withdrawals made during that period along with other documents required by your lender.

These mortgages are designed for self-employed borrowers or investors.

The lender will use this information to determine how much money you earn annually, as well as how much money you can afford to pay each month on your mortgage loan (your monthly payment).

They’re sometimes called non-QM loans because they don’t require standard documentation such as a W-2 or pay stubs.

In the mortgage industry, bank statement mortgages are also called non-QM loans because they don't require standard documentation such as a W-2 or pay stubs. They're a good alternative to traditional mortgage documentation for borrowers who have had trouble getting approved for other types of loans due to their current financial situation.

Here’s how bank statement mortgages work.

In order for your application to be approved, the lender will need to see several months' worth of statements from all of your accounts that show regular deposits into them (and nothing else). It's also helpful if there are no large withdrawals during this time period--though some lenders may still accept applications even if they see large withdrawals on their end date if they're able to verify that those funds were used toward paying down debt instead of being spent on something that will increase your debt

Bank statement home loans offer self-employed borrowers an alternative to traditional mortgage documentation.

Bank statement mortgages are a type of non-traditional mortgage. These loans do not require standard documentation such as a W-2 or pay stubs, which is why they're sometimes called non-QM loans.

This type of loan also requires additional information on expenses and asset values such as vehicles or property owned by the borrower.

Investors can use these mortgages for the same purpose.

Investors would be interested in a non-owner occupied non-QM loan because they don't need to occupy the property to meet the loan requirements. They can also purchase properties that are not eligible for traditional financing (like short sales) or fix up houses with little cash down by using the money from their bank statements as collateral for the mortgage loan

Bank Statement Mortgages help self employed business owners and investors

Bank Statement Mortgages help self employed business owners and investors qualify for a new home loan or refinance an existing mortgage using personal and business bank statements instead of tax returns.

Bank Statement Mortgages are a good option if you:

  • Are self-employed
  • Are an investor who needs a flexible non-owner occupied non-QM loan.

A bank statement mortgage is a great option for self-employed borrowers or investors who want to buy a home or refinance an existing one. It can also help you get approved faster than traditional mortgages because you don't have to provide as much documentation or wait for it to be processed by third parties. The best part about these loans is that they're available from Amres, reach out today.

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