Bank Statement Mortgage Loans
Not everyone fits in the small box of the old traditional mortgage loans. With many different types of people, you need many different types of mortgages. Some hopeful borrowers have a solid history of financial responsibility and a strong credit rating but haven’t been able to get traditional home financing due to income or self-employed status that’s why we offer Ignite Mortgage Bank Statement Mortgage Loan.
What is a bank statement mortgage loan?
Our Bank Statement Loan is exactly what it sounds like. Self-employed workers are still workers who still earn a living. You may not have the documentation, but all you need is a bank statement, and you can get qualify for a home loan with Ignite Mortgage, whether you’re purchasing or refinancing.
It’s an alternative way to qualify when others simply say no. Just because your finances may seem complicated, we offer a simple solution. With just an average of your deposits over a 12- or 24-month period, you can be eligible. Want to see if you qualify?
Non-QM loans
Some people looking for a mortgage have unique financial situations — more unique than others. So they struggle to qualify for a loan. A perfect example is a self-employed worker who doesn’t have W-2s to show at the time of application. In the past, mortgage lenders wouldn’t approve such an applicant because there’s no viable proof that they have the funds and ability to repay the loan.
But times are different at Ignite Mortgage. Here, the borrower is not out of opportunities to get approved. With Non-Qualified Mortgage loans (Non-QM), we offer borrowers loan products for those who don’t fit the profile for a typical mortgage. From self-employment and foreign investors to retirees and divorcees, we find a loan to fit nearly any borrower.
Pros and Cons of bank statement loans
To help you decide if a fixed-rate mortgage is right for you, here are some benefits and drawbacks. Bank statement loans are designed for self-employed individuals, freelancers, and business owners who may not qualify for traditional mortgages due to non-W2 income. These loans offer flexibility but also come with specific requirements..
Pros
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Alternative to traditional mortgages, Ideal for those whose tax returns don’t always tell the whole story.
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Bank statements only, Income verification is based on bank deposits, not tax returns.
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No PMI, Private mortgage insurance is typically not required.
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High DTI allowed, Debt-to-income ratios up to 50% may be considered.
Cons
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Business history required, Generally, you must be self-employed or in business for at least two years.
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Higher interest rates, Rates are generally 1%–3% higher than those of conventional loans.
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Larger down payments, Expect to put down 10%–20%, with higher requirements possible for lower credit scores.
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Limited availability, Not all lenders offer bank statement loan programs
