Bank Statement Home Loans
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Bank Statement Home Mortgages
Welcome to Capital Home Mortgage, where we strive to provide Self Employed homebuyers and homeowners alternative options to purchase, refinance, or cash out home loans. Non-QM Bank Statement Loans are specialized mortgage products designed for self-employed borrowers, independent contractors, or business owners who may not have traditional income documentation like W-2s or tax returns. Instead, these loans rely on bank statements to verify income, making them a key solution for individuals with non-traditional income profiles.
Capital Home Mortgage can guide purchasers through this non-traditional mortgage path, offering individualized solutions. Our extensive experience and dedication to customer service make us a dependable option for Non-QM loans.
Call today (800) 804-5181 to speak to a Bank Statement Mortgage Specialist.
Bank Statement Mortgage Rates
Interests rates are calculated using several factors. Depending on the type of mortgage you are looking at and the impact of the items below can determine the interest rates.
- Demand for Mortgage Securities
- Property Securing the Mortgage
- Occupancy of the Property
- Loan to Value of the Property
- Borrower’s Credit Worthiness
Bank Statement Mortgage Loans
A bank statement loan is a type of mortgage that allows self-employed borrowers to verify their income based on their personal or business bank statements, rather than traditional methods like tax returns, W-2s, or paystubs. Bank statement loans are generally used by self-employed individuals, small business owners, or independent contractors. Borrowers do not have to own 100% of the business. Our Bank Statement program provides a loan solution to help underserved credit-worthy self-employed borrowers who otherwise would not qualify for a home loan.
Bank Statement Key Points
- Purchase, Rate & Term, Cash-Out
- Primary, Secondary and Investment
- Minimum Credit 640
- Maximum LTV 90%
- 12 or 24 Months Business or Personal Bank Statements
- Most loans will be qualified on an expense factor of 50%
- Rates are 30-year fixed
- Interest Only Options
- Two Year Seasoning Foreclosures / Bankruptcy
- Minimum Loan 150K / Maximum Loan 3M
Key Features of Bank Statement Home Loans
Benefits of Bank Statements Loans
- Income Flexibility: Perfect for self-employed borrowers who take significant tax deductions, resulting in lower reported taxable income.
- No Tax Return Requirements: Eliminates reliance on adjusted gross income (AGI) reported on tax returns.
- Higher Loan Amounts: Allows borrowers to qualify for larger loan amounts compared to traditional DTI-based loans.
- Wide Range of Eligible Properties: Can be used for primary residences, second homes, or investment properties.
- Flexible Qualification: Lenders evaluate the borrower’s cash flow rather than strict debt-to-income (DTI) ratios.
Downside of Bank Statement Home Loans
- Higher Interest Rates: California Bank Statement Mortgage Rates are priced higher than conventional or FHA loans.
- Larger Down Payments: Higher LTVs often come with stricter qualification criteria.
- Limited Lender Options: Not all lenders offer non-QM loans, which can limit competition and choice.
- Prepayment Penalties: Some programs may include prepayment penalties for early payoff.
Qualifying Bank Statement Home Loans
- Bank Statement Requirements: Provide 6-24 months of personal or business bank statements.
- Business owners may need to demonstrate expense ratios (e.g., 50-80% of deposits considered income).
- Reserves: Lenders may require 3-12 months of reserves (e.g., mortgage payments) in savings.
- Credit Profile: Higher credit scores and solid payment history improve terms.
Who Should Consider Bank Statement Home Loans
- Borrowers who struggle to qualify for traditional mortgages due to complex income profiles.
- Investors or individuals seeking flexibility in documentation.
- Those looking to finance high-value properties with alternative qualification methods.
- Self employed Borrower who work for varies companies
Bank Statement Home Loans FAQs
What is a bank statement home loan and how does it work?
- A bank statement home loan allows borrowers to qualify for a mortgage using personal or business bank statements instead of tax returns or W-2s. Lenders review 12 to 24 months of deposits to calculate average income, making it ideal for self-employed borrowers or business owners with non-traditional income documentation.
Who is a good candidate for a bank statement mortgage?
- Bank statement loans are best suited for self-employed professionals, freelancers, independent contractors, gig workers, and small business owners who show strong cash flow but have large tax deductions. It’s a flexible option for anyone with consistent deposits that don’t fit traditional underwriting standards.
What types of bank statements can be used to qualify?
- Borrowers can typically use either personal or business bank statements. Personal statements show individual income deposits, while business statements reflect company cash flow. Lenders may analyze 12 or 24 months of statements and apply expense ratios depending on your business type.
How do bank statement loans differ from traditional mortgages?
- Traditional loans require tax returns, W-2s, and pay stubs to verify income. Bank statement mortgages, on the other hand, qualify borrowers based on deposits rather than taxable income—offering more flexibility to entrepreneurs and self-employed borrowers whose tax filings may not reflect true earnings.
What credit score and down payment are required for a bank statement loan?
- Most bank statement loan programs require a minimum credit score around 600–660 and a down payment between 10–20%, depending on the lender and borrower profile. Strong reserves, low debt, and higher credit scores can help secure better rates and terms.
Can I use a bank statement loan to buy an investment property or second home?
- Yes. Many bank statement loan programs allow financing for primary residences, second homes, and investment properties. Investors and self-employed borrowers often use these loans to purchase or refinance real estate without the strict income verification of conventional loans.
How can Capital Home Mortgage help me qualify for a bank statement mortgage?
- Capital Home Mortgage offers nationwide Bank Statement Loan programs with flexible underwriting, competitive rates, and personalized guidance. Our Non-QM specialists review your statements, business structure, and financial goals to match you with the best-fit program for your situation.
Why Home owners Choose Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Competitive Rates & Fees
Direct Lender with Complete Mortgage Programs
Exceptional Service
Customer Support Application to Final Payment
Why Home owners Choose Capital Home Mortgage
Close On Time
Complete Control from Application to Funding
Competitive Rates & Fees
Direct Lender with Complete Mortgage Programs
Exceptional Service
Customer Support Application to Final Payment
Capital Home Mortgage Company Reviews
Home Mortgage Programs
Home Purchase Loans
Looking to Purchase a Home?
Looking to Purchase a Home? We have the loan program for you… Call today to speak with a loan officer to discuss your personal mortgage options.
- Primary, 2nd Home, Investment
- Competitive Rates & Fees, No fee Options
- FHA, VA, USDA, Native American
- Conventional, Jumbo & Renovation
- Manufactured, Construction, Reverse
Renovation Home Loans
Looking to Rehab a Home?
Want the Charm of an Older Neighborhood? But want a new place or a fresh look? Why not a renovation loan? Purchase the Perfect Home and make it your own.
- Remodel, Renovate or Repairs
- FHA 203K Streamline
- FHA Full Documentation Rehab
- Fannie Mae Homestyle Reno
- Freddie Mac Home Choice Reno
FHA Home Loans
Great 1st Time Homebuyers
FHA Home Loans are great for first time home buyers, buyers with less than perfect credit, or buyers needing less out of pocket. Call today to get started.
- Smaller Down Payments
- Flexible Underwriting Guidelines
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Down Payment Gifts Allowed
VA Home Loans
100% Financing for Vets
Proudly Serving Active Duty servicemen and women, as well as, retired and disabled veterans. Call today to speak with a VA loan officer.
- No Mortgage Loan Limits
- Simple Qualifying
- Higher Debt to Income Allowed
- Lower Credit Scores – Down to 500
- Manual Underwriting Allowed
Conventional Home Loans
Flexibility for Homebuyers
Conventional Home Loans are the best option for flexibility of property types and for mortgage loan terms. Call today to get speak to a loan officer.
- Primary, 2nd Home, Investment
- Single and Multi-Family Properties
- Variable Mortgage Insurance Options
- Low Rates & a Variety of Terms
- Renovation Programs Available
Jumbo Home Loans
Non-Conforming Home Loans
Jumbo Home Loans also called Non Conforming Home Loans are great options for buyers needing financing outside of agency limits. Call today.
- Primary & 2nd Homes
- Variety of Mortgage Programs
- Simple Qualifying for Veterans
- Investor Specific Guidelines
- Credit Score Minimums
USDA Home Loans
100% Rural Home Loans
USDA Loans are a great option for families wanting to live outside of the city. Call today to speak with a loan officer to discuss your personal loan options.
- Primary Residences
- No Down Payment Required
- New Manufactured Homes Allowed
- Closing Costs / Repairs Rolled In
- Geographic and Income Limits Apply
Native American Home Loans
Hud 184 Home Loans
HUD 184 Home Loans are solely for Native American and offer a variety of benefits. Call today to speak with a loan officer to find out more.
- Primary Residence Only
- Manual Underwriting for All Loans
- No Credit Score Requirements
- Tribal Grants Allowed
- Purchase, Refinance, and Renovation
Manufactured Home Loans
Great Alternative Housing
Manufactured Home Loans offer options to purchase an existing residence or build your dream home on your own land. Call today to speak to a Loan Officer.
- Existing Purchase or Refinance
- New Construction
- One Time Close Land/Home Combo
- Lock at Contract
- FHA, VA, USDA, Native American
Reverse Mortgage Loans
Your Home at Work
Reverse Mortgage Loans offer seniors options to use their home’s equity for cash or to eliminate payments. Call today to get speak to a Reverse Loan Officer.
- Primary Residence Only
- Simple Qualifying – Equity Based
- No Credit Score Requirements
- Minimum Age 62
- Purchase, Refinance, and Cash-Out
Non QM Home Loans
Making Mortgages Possible
Looking for Non Traditional Home Mortgage Loan? Contact a Loan Officer Today to discuss the alternative mortgage options currently available.
- Purchase, Refinance & Cash-out
- Primary, Secondary, Investment
- Full Doc Programs
- Alt Doc Programs
- Corporations OK
One Time Close Home Loans
Build Your Dream Home
Want to Build? But unsure of what the future looks like? Remove the risk with a One Time Close Construction Loan. Call today to see how a OTC loan works.
- Primary Residences Only
- One Time Close
- Lock Rate at Closing
- Traditional Final Mortgages
- No Payments During Construction
Refinance Mortgage Loans
Rate & Term Refinance
Refinancing can be a hard decision and may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor for details.
- Lower Monthly Payment
- Shorten Mortgage Term
- Streamline Options Available
- Appraisal Waivers Allowed
- VA IRRRL’s
Cashout Mortgage Loans
Equity Mortgage Loans
Cash-Out Mortgage Loans make use of the equity in your home. Refinancing may result in finance charges that may be higher over the life of the loan. Consult with your loan advisor.
- Debt Consolidation
- Investment Opportunities
- Home Improvement
- Dream Vacation
- Higher Education
State Specific Mortgage Information