What Is A Bank Statement Mortgage Program

MARCH 1, 2022


Many entrepreneurs can have irregular income depending on the seasons or the year and may not have a stable, traditional income in which lenders are able to accurately asset for their mortgage. 

Many self-employed individuals do not have a typical income stream when compared to an individual that has a full-time position in a company earning a monthly salary. The Bank Statement mortgage targets individuals who have enough income to purchase a home over the course of 12-24 months, but is not a conventional income stream.

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How Does It Work?

Instead of relying on their W-2’s or pay stubs to verify their income, lenders rely on monthly bank statements to get a better understanding of an entrepreneur’s financials and their ability to pay a mortgage.

Due to this, borrower qualification requirements for lenders can be more flexible than for traditional mortgages such as conventional or FHA, but they do vary from lender to lender.

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How Many Months Of Bank Statements Do You Need To Provide?

Depending on the lender, you may be required to provide 12 or 24 months of bank statements. This is largely dependent on the borrower’s financial profile and credit score. Many individuals can qualify with only 12 months of bank statements, but to get better rates, they may be required to provide 24 months of bank statements. 

The reason why 24 months get borrowers better interest rates is because the lender has a better understanding of a borrower’s financial profile with a longer bank history.

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Requirements For A Bank Statement Mortgage

Bank statement mortgages are not included in the typical category of qualified mortgages. Due to this, mortgage lenders can have their own qualification guidelines that better suit their needs. 

Traditional mortgages have a set form of requirements that lenders need to meet in order to qualify a borrower, which is not the case with 12 month bank statement mortgages. Many lenders who specialize in 12-24 month bank statement mortgages have their own qualification guidelines. Lenders can request additional documents or apply different guidelines in regards to credit scores or down payments.

Depending on the lender, you may be required to provide personal statements, business statements, and in some cases both, as every lender has their own guidelines they follow.

For example, some business owners do not have strong personal bank statements as they do not pay themselves from their business. Instead, all of the profit generated from the business is kept in business accounts, in which case the lender may ask for both personal and business statements, but will only qualify you based on your business’s statements. 

The program is also beneficial to individuals who do not receive a scheduled paycheck but earn enough income to purchase a home.

Best Tip:

To get the best rates in a bank statement mortgage program, it is preferred to provide 24 months bank statement.


There may be better options for borrowers than a Bank Statement Mortgage. With mortgages, every borrower is a unique case. FHA or Conventional might be a better option. In some situations, borrowers might think that they won’t be eligible for an FHA or Conventional loan, but on the other hand, we might be able to help by using for example (overtime, Social Security, Pension, Alimony, or any other source of income as a qualified income). A mortgage loan officer is the best resource to find the best option for you and can help you decide on the best course of action.

You Still Have Questions or Want to Find out More?

At Best Mortgage, we always strive to give our borrowers the best solutions with our extensive network of lenders and devoted loan officers. We make the application process as easy as possible and our team is dedicated to helping our borrowers in achieving their dream of homeownership. Our loan officers are always ready to help you navigate the mortgage preapproval process. For more information call (734) 519-1827.


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