Bank Statement Programs

Bank statement program loans are a type of mortgage loan designed for self-employed individuals or business owners who may not have traditional income documentation, such as W-2 forms or pay stubs, to qualify for a conventional mortgage. Instead of relying on traditional income verification methods, these loans allow borrowers to use their personal or business bank statements to demonstrate their income and repayment ability.

Bank statement program loans provide an opportunity for self-employed individuals or business owners to access mortgage financing, even if they cannot provide conventional income documentation. However, borrowers should carefully consider the terms, costs, and risks associated with these loans before proceeding. It's essential to work with a reputable lender, understand the specific terms of the loan, and ensure that the loan aligns with the borrower's long-term financial goals.

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Frequently Asked Questions

Mortgages are typically offered by financial institutions, such as banks and credit unions. Mortgages can also be obtained from other sources, including private lenders and government agencies.Mortgage rates vary depending on the borrower’s credit history, income level, loan-to-value ratio, type of property being purchased and other factors.

When should I refinance?

There are a lot of reasons to get a new loan. We only look at the cost of getting a lower interest rate. We don't look at how much you'll save on your payments, which can change the results because you're frequently borrowing less money. Then, we figure out how long it might take to get those costs back. In many cases, you, the borrower, won't have to pay any or very little of the costs. Even a slight change in rate can save you money. We also look at the remaining time on your mortgage. How much money you could save, and what you plan to do with the money you save from lower rates.

What are the points?

The no points, or based on paying 1 point, are references to a percentage of the total amount that can be borrowed. Since one point is equal to one percent of the loan, 1 point on a $100,000 loan would amount to $1,000. 1 point on a loan of 1.5% would be equal to $1,500.

Should I pay points to lower my interest rate?

Paying discount points to cut loan rates can be effective. Even if you anticipate staying in the property for a long time, the points may not be worth paying unless they provide a cost-effective return depending on the duration it takes to recover the costs. Points can often cut payments or increase borrower power.