Bank Statement Loans: A Flexible Option for Small Business Owners

As a small business owner your income doesn’t fit into the boxes that traditional lenders require. That’s where bank statement loans come in – a flexible financing option for entrepreneurs and self-employed individuals.

What are Bank Statement Loans?

Bank statement loans are for borrowers who don’t have traditional income documentation like W-2s or tax returns. Instead, lenders look at deposits into your personal or business bank accounts. This makes it easier for small business owners to qualify for a mortgage without going through the hassle of traditional loan requirements.

Why Bank Statement Loans are Good for Small Business Owners?

1. Flexible Income Verification - Lenders rely on tax returns which can be limiting for business owners who write off expenses. Bank statement loans look at actual cash flow which reflects your true earning power.
2. Customizable Terms - Competitive rates and terms make them fit your financial situation and goals.
3. Preserves Tax Benefits - You can take advantage of tax deductions without worrying how it will affect your ability to qualify for a mortgage.

How Do They Work?

• Eligibility Requirements: Lenders will review 12-24 months of bank statements to determine your average monthly income.
• Credit Requirements: Guidelines vary but most lenders look for good credit and reasonable debt-to-income ratio.
• Loan Options: Bank statement loans can be used for purchase or refinance of your dream home.

Benefits of Working with a Specialist

Bank statement loans can be complicated but with the right lender it’s simple. At the Jason Waters Lending Team we specialize in helping small business owners achieve their homeownership goals with custom solutions.