In a traditional mortgage, borrowers can qualify for financing based on various factors including employment and income. For most borrowers applying for a traditional mortgage, a W-2 and tax returns are required documentation to verify these qualifications. However, this can pose a challenge for borrowers who may not have steady income, are self-employed, or are investors. Fortunately, there is an alternative — The Bank Statement Qualifier Mortgage.

What are Bank Statement Loans?

Bank statement loans are mortgages that allow the borrower to use the statements from their deposit bank accounts to qualify for the new loan. In other words, W-2s and tax returns are not required and instead, the borrower can show their bank statements to the lender as a way of verifying their financial ability to repay the loan.

Not every lender offers bank statement loans. At Luxury Mortgage, we are proud to offer this powerful financing tool as a flexible alternative to traditional mortgage financing.

See related post, “Is the Bank Statement Qualifier Mortgage a Good Fit for Me?”

What are the Qualification Guidelines for Bank Statement Loans?

Different lenders may have different qualification guidelines for their bank statement loans. At Luxury Mortgage, borrowers can use either business or personal bank statements to qualify for our Bank Statement Qualifier Loan.

If using a personal bank account, documentation may be used as follows:

  • Most recent 12 or 24 months of personal bank statements and most recent 3 months of business statements
  • Utilize 100% of deposits into personal accounts as income
  • Deposits must be sourced
  • More than one account may be used

If using a business bank account, documentation may be used in the following manner:

  • Most recent 12 or 24 months of business account statements
  • To find dollar amount multiply all eligible deposits by 50% and again by borrower’s ownership percentage in the business
  • Eligible deposits are those that can be sourced as business income
  • More than one account may be used

Guidelines May Be Subject to Change

Borrowers are urged to remember that the eligibility and qualification guidelines for any mortgage program are subject to change. Please contact your lender for the most accurate and up-to-date loan guidelines.

Ready to Learn More?

The Bank Statement Qualifier Mortgage from Luxury Mortgage Corp® may be an ideal solution for borrowers without the ability to traditionally document their income or employment. Connect with us today to learn more about this unique program and receive a free, no-obligation rate quote.

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