A bank statement loan is an alternative to traditional mortgage products. These loans make it possible to gauge a buyer’s ability to repay a loan based on their bank statements and banking history in place of income that’s reported on W-2’s, pay stubs or tax returns.
Some creditworthy borrowers who don’t qualify for other types of loans can qualify for a bank statement loan instead. This type of loan can be a great backup mortgage option for self employed clients.
Good candidates for bank statement loans include small business owners and self-employed individuals.