Bank Statement Loans

A Bank Statement Loan is a type of mortgage loan that allows borrowers to qualify based on their bank statements rather than traditional income documentation, such as pay stubs or tax returns. This loan is typically used by self-employed individuals, freelancers, or business owners who may not have regular salaried income but still have a steady cash flow. Lenders review personal or business bank statements (usually for the past 12-24 months) to assess income by looking at deposits and overall cash flow. This type of loan offers more flexibility for borrowers who have difficulty proving their income through traditional means but may come with higher interest rates or stricter terms due to the increased risk for lenders.