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Bank Statement Loan
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A Bank Statement Loan is a type of loan in the USA designed for people who don’t have regular paychecks, like self-employed individuals, freelancers, or small business owners. Instead of using tax returns or W-2 forms to show income, lenders look at your bank statements (typically the last 12–24 months) to see how much money you make.
Eligibility:
Self-employed individuals or business owners.
Freelancers, gig workers, or contractors with irregular income.
Borrowers with a steady cash flow shown through bank statements.
Benefits:
No Tax Returns Needed: Great for borrowers with high deductions that lower their taxable income.
Flexible Income Verification: Uses actual cash flow instead of traditional paperwork.
Higher Borrowing Potential: Accounts for real income rather than adjusted taxable income.
Ideal for Self-Employed: Tailored for people with non-traditional jobs or fluctuating income.
Faster Approval: With fewer documentation requirements, the process is quicker than traditional loans.
Pros:
No need for tax returns or pay stubs.
Great for people with irregular or non-traditional income.
Helps self-employed borrowers qualify for loans more easily.
Cons:
Higher interest rates compared to traditional loans.
Requires a higher credit score in some cases.
May need a larger down payment or proof of consistent deposits.
If you’re self-employed and your tax returns don’t reflect your actual income due to write-offs or deductions, a bank statement loan can help you qualify for the funding you need—whether it’s for buying a home or another purpose.
This loan is flexible and made for modern workers with unique income sources!
Get a free instant rate quote
Take a first step towards your dream home
Free & non binding
No documents required
No impact on credit score
No hidden costs
Take your first step towards your home loan journey
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