Empowering Self-Employed Investors

Bank Statement Mortgage Loan Highlights

• Self-employed investors: Bank statement loans are designed for self-employed borrowers, including sole proprietors, partnerships, and LLCs, who are purchasing or refinancing investment properties.
• Income verification: These loans use the borrower's personal or business bank statements to verify income, instead of W-2s or tax returns.
• Loan amount: Bank statement loans can offer loan amounts up to $5 million, making them ideal for higher-end investment properties.
• Loan terms: Typically available with 15- or 30-year terms, with fixed or adjustable rate options.
• Underwriting requirements: Requires a thorough underwriting process, which considers the borrower's bank statements, credit score, and debt-to-income ratio.

When to Use a Bank Statement Loan vs. a DSCR Loan

While both are excellent tools for real estate investors, they serve different scenarios. A DSCR loan is perfect when the rental property's income can cover the mortgage payments (a DSCR ratio of 1.0 or higher). However, if a property is vacant, needs renovations, or the rents don't yet cover the full payment, a Bank Statement Loan is the ideal solution. It allows you to use your strong personal or business cash flow from other sources to qualify for the purchase, giving you the flexibility to acquire properties with upside potential that other investors might overlook.