Buying a home using bank statements as income to qualify for a mortgage and what you need to know
By DDA Mortgage
25 Jul, 2022
The economy is changing, and with it, so are the borrowing trends for homeowners. One of the most significant changes that have happened recently is that more people are using bank statement loans to purchase a home. These loans are an excellent opportunity for the self-employed who have a lot of write-offs or may not have W2s. Bank statement loans mean that you can use your business’s bank statements to qualify for a mortgage to buy a home instead of tax returns and W2 income. These loans work by looking at the last 12 months of your business’s bank statements instead of W2 income and tax returns. You must be self-employed for 2 years, and your income is based on 50% of your average deposits over 12 months. You will still need to meet other qualifications such as down payment amount, credit score, and debt-to-income ratio (DTI). It is important to note that these loans vary by lender. Bank Statements vary by lender. They are not the same as traditional loans that must follow specific guidelines to be sold back to the government. If you are self-employed and have been for at least 2 years, then a bank statement loan may be a good option for your business. To learn more about qualifying, call one of our mortgage experts at (727) 784-5555. Or use the form below to ask a question.