Bank Statement Mortgage Loans
Not everyone fits in the small box of the old traditional mortgage loans. With many different types of people, you need many different types of mortgages. Some hopeful borrowers have a solid history of financial responsibility and a strong credit rating but haven’t been able to get traditional home financing due to income or self-employed status — that’s why we offer CCM’s Signature Expanded Bank Statement Mortgage Loan.
What is a bank statement mortgage loan?
Our Signature Expanded Bank Statement Loan is exactly what it sounds like. Self-employed workers are still workers who still earn a living. You may not have the documentation, but all you need is a bank statement, and you can get qualify for a home loan with CCM, whether you’re purchasing or refinancing.
It’s an alternative way to qualify when others simply say no. Just because your finances may seem complicated, we offer a simple solution. With just an average of your deposits over a 12- or 24-month period, you can be eligible. Want to see if you qualify?
Non-QM loans
Some people looking for a mortgage have unique financial situations — more unique than others. So they struggle to qualify for a loan. A perfect example is a self-employed worker who doesn’t have W-2s to show at the time of application. In the past, mortgage lenders wouldn’t approve such an applicant because there’s no viable proof that they have the funds and ability to repay the loan.
But times are different at CCM. Here, the borrower is not out of opportunities to get approved. With Non-Qualified Mortgage loans (Non-QM), we offer borrowers loan products for those who don’t fit the profile for a typical mortgage. From self-employment and foreign investors to retirees and divorcees, we find a loan to fit nearly any borrower.
How do bank statement loans work?
A bank statement loan gives you the chance to get approved for a mortgage using your bank statement instead of tax returns, pay stubs, or even W-2s.
Here’s how it works: with this type of loan, it’s not required that you prove your income through employer verification — rather, you provide CrossCountry Mortgage with your personal or business bank statements. A larger down payment may be necessary, and you may also need further documentation, including:
- 2+ years of self-employment history
- Credit score
- Debt-to-income ratio (DTI)
- Proof of liquid assets
- 12–24 months of bank statements
Who are bank statement loans for?
Bank statement loans are great options for people who are self-employed, independent contractors, gig workers, consultants, freelancers, small business owners, doctors, lawyers, or even full-time real estate investors who may qualify based on the revenue earned from their properties alone.
Bank statement loan requirements
Here are the following requirements when applying for a bank statement loan.
- Personal bank statements (12-24 months)
- No tax returns required
- Borrow up to 90% of the value of the home
- Debt-to-income ratio up to 50%
- Loans up to $3 million
- For primary and secondary homes and investment properties
- Non-warrantable condominiums
Pros and cons of bank statement loans
Bank statement loans are designed for self-employed individuals, freelancers, and business owners who may not qualify for traditional mortgages due to non-W2 income. These loans offer flexibility but also come with specific requirements.
Pros of bank statement loans
- Alternative to traditional mortgages – Ideal for those whose tax returns don’t always tell the whole story.
- Bank statements only – Income verification is based on bank deposits, not tax returns.
- No PMI – Private mortgage insurance is typically not required.
- High DTI allowed – Debt-to-income ratios up to 50% may be considered.
Cons of bank statement loans
- Business history required – Generally, you must be self-employed or in business for at least two years.
- Higher interest rates – Rates are generally 1%–3% higher than those of conventional loans.
- Larger down payments – Expect to put down 10%–20%, with higher requirements possible for lower credit scores.
- Limited availability – Not all lenders offer bank statement loan programs.
How to get a bank statement loan
Depending on your credit score, loan-to-value (LTV) ratio, and down payment ability, you could qualify for financing without having to prove regular income with W-2s and other traditional documentation. You don’t have to have perfect credit with CCM. We work with you to see you have the best chance possible for approval.
While your LTV ratio assesses your lending risk — the higher it is, usually the higher risk you are as a borrower. But you can still qualify for a bank statement loan with a high LTV ratio. All you have to do is talk to your CCM loan officer to see if you’re a good candidate — and we take care of the rest.
Alternatives to bank statement loans
Bank statement loans can be a great option for self-employed individuals or those with non-traditional income, but they’re not the only solution. Whether you’re facing stricter requirements, higher interest rates, or limited lender availability, it’s important to know that other financing options may better suit your needs. Below are several alternative loan types that can provide flexible approval criteria and help you secure the funding you need — without relying on traditional income documentation.
- Profit and Loss (P&L) Statement Loans
- Asset-Based Loans
- Full Doc Loans
- DSCR Loans (Debt Service Coverage Ratio Loans)
- 1099 Income Loans
