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What is a bank statement loan?

A bank statement mortgage is a non-QM loan program that utilizes bank statements for calculating a borrower’s income. Unlike traditional mortgages that rely on tax returns and W-2 forms, bank statement loans offer alternative documentation options. Primarily designed for self-employed individuals who often face challenges in proving their ability to repay due to significant tax write-offs, bank statement mortgage programs evaluate applicants using personal or business bank statements.

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Some of the key benefits of bank
statement loans include: 

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  • Qualify using bank statements: The main benefit of this type of financing is that you can qualify using 12 or 24-month bank statements rather than pay stubs or tax returns. This makes it easier for small business owners and self-employed individuals to qualify for home financing. You may use your business bank statements or personal bank statements to qualify. 

  • No tax returns needed: When underwriting a bank statement loan, lenders don’t necessarily need to look at your tax returns, which may not accurately represent how much income you actually earn. 

  • Down payments as low as 10%: You can get a bank statement loan with a minimum down payment of 10%. 

  • Cash-out refinance up to 80% of property value: A cash-out refinance loan can provide you with funds needed for big purchases, home improvements, emergency expenses, and more. 

  • Loan amounts of up to $5 million: High loan amounts make it possible to widen the scope of your home search and purchase high-value properties. 

  • DTI ratios of up to 50% can qualify: Flexible DTI ratio requirements make qualifying for a bank statement loan easier. 

  • Fixed- and adjustable-rate options available: Choose from a fixed-rate bank statement loan or opt for an adjustable rate. 

  • Interest-only option available

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Terms and conditions expressed in this website can be changed without prior notice and are examples of what may be possible, we make no promise or guarantee that the borrower will receive these terms and conditions. Each loan stands on it's own merits or lack there of. 

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