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City Edge Financial

Bank Statement Loans

Non-QM loans like bank statement loans open up more opportunities for qualified borrowers who may not have W-2s or tax returns that qualify them for a loan. City Edge Financial works with many lenders that offer non-QM loans to open up more doors for you.

What is a Bank Statement Loan?

A bank statement loan allows borrowers to qualify for a mortgage based on their bank statements, not their tax returns. Your bank statements must prove you have the income to qualify for a loan, even if your tax returns don’t.

Your bank statements should show regular receipt of income from a stable resource to qualify you, such as your business or a job you work based on commission.

Why do Borrowers Need Bank Statement Loans?

Many borrowers need bank statement loans because they have a lot of write-offs on their tax returns. When you have a lot of write-offs, it lowers your adjusted gross income, which conventional lenders must use for qualifying.

On the other hand, bank statement loans are portfolio loans that lenders keep on their books. This allows them to make their own rules and approve loans for borrowers that don’t have the income on paper. Keep in mind, though, you still must prove you can afford the loan payments.

How to Qualify for Bank Statement Loans

Each lender has different guidelines for bank statement loans, but here’s what to expect on average.

Once eligible, you must prove you can afford the loan using these guidelines:

An above-average credit score

Enough cash reserves to cover a few months of mortgage payments

12 to 24 months of bank statements to prove your income

Proof of employment, such as a letter from your CPA and/or a business license

Enough income to cover your mortgage and other debts and have disposable income

How to Get Started

Contact us to get a bank statement loan, and we’ll get started. We’ll discuss your employment situation and look at your income to determine if you are a good candidate for the program. We work closely with many lenders that offer bank statement loans and can help you get matched with the right lender.