A personal bank statement mortgage is a type of loan designed for individuals who may not have traditional proof of income, such as pay stubs or W-2s, but have sufficient income demonstrated through their bank statements. These mortgages are particularly popular among self-employed individuals, freelancers, contractors, or business owners.
Personal Bank Statement Loans in LA, Orange County and Surrounding Areas – No W-2s or Tax Returns Needed
How Personal Bank Statement Mortgages Work
- Income Verification Through Bank Statements:
Instead of relying on tax returns or pay stubs, lenders assess the borrower’s income based on deposits shown in personal or business bank statements over a specified period, usually 12 to 24 months. - Evaluation of Consistent Cash Flow:
Lenders analyze the statements to determine if the borrower has a stable and adequate cash flow to cover mortgage payments and other obligations.
Who Can Benefit from Bank Statement Mortgages?
- Self-Employed Individuals: Entrepreneurs, freelancers, and gig workers who may have fluctuating or unconventional income.
- Business Owners: Those whose taxable income might be lower due to business deductions but show strong revenue in bank deposits.
- Commission-Based Workers: Salespeople or others whose income depends on commissions or bonuses.
- Investors: People with non-traditional income sources like rental property earnings.
Advantages of Bank Statement Mortgages
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