Bank statement loans are not your conventional mortgages. These are home loan plans that utilize bank statements to determine the debtor's income. These can be used in place of tax returns and W-2s in the vetting procedure. They are also perfectly adequate for self-employed people who have a certain amount of write-offs that make it difficult to portray the required amount of income proving that they can return the loan. The bank statement loan plans can use personal or business bank statements to determine the borrower’s income.
Bank Statement Program Requirements
Bank statement loans are different from conventional mortgages. The bank statement initiative utilizes the bank statement to estimate the income of the borrower.
This type of documentation is an alternative to utilizing W-2s and tax returns when checking for eligibility. This type of loan is meant for borrowers that are self-employed
that have significant tax write-offs that made it difficult to prove the required income and their ability to repay the loan. The bank statement loan initiative uses either a business or personal bank statement to make borrowers eligible.
Borrowers from the 1099 program can become eligible for a loan through a bank statement or 1099 earning statements.
Individuals that are unable to validate their tax returns can opt for this loan.
Ideally, recent statements of about one or two years are needed and a borrower is required to be employed for up to two years by a single employer.