Bank statement loans allow borrowers without traditional income sources to obtain mortgages.

From Yahoo Finance: 2025-05-06 14:26:00

Are you self-employed or have a non-traditional income source? Traditional mortgages require W-2s, but some mortgage lenders offer bank statement loans for borrowers without traditional income sources, like self-employed individuals or gig workers. Bank statement loans rely on business bank statements to determine income and expenditures. These loans are part of non-qualifying mortgages, meaning they don’t meet standards set by the CFPB. While they offer flexibility, bank statement loans have higher interest rates, require a 10% down payment, and may have unusual loan features. Borrowers must still demonstrate financial soundness, including a good credit score and sufficient income history.



Read more at Yahoo Finance: What are bank statement loans?