12 Month Bank Statement Program

For both residential and commercial loan applications, borrowers are often required to provide their tax returns for the last few years as well as other documents to verify their income. Generally, the tax returns may need to be accompanied by all W-2s the applicant has received for the last few years and recent paystubs. As a self-employed worker, however, you may have taken advantage of the many deductions and write-offs that you are legally permitted to take. As a result, your income may not be properly reflected on your tax returns. Plus, you may not have paystubs. How can you get approved for the mortgage that you need in this type of situation? MortgageDepot has helped many people in similar situations get approved for the financing they need. One option available to you is a 12-month bank statement program.

Income Documented Through Bank Statements
With a 12-month bank statement program, you may still be required to provide your tax returns for the last few years, but the underwriter will not analyze your income from them. Instead, the underwriter will determine your monthly income based on a review of your bank statements for the last 12 months.

Other Important Details About the 12-Month Bank Statement Program
The 12-month bank statement program may also require you to provide a business profit and loss statement and other information related to your business’s financials. In addition, this loan program may have:

• A stricter credit score requirement
• A higher liquidity reserve requirement
• A higher interest rate
• FICO 580
• Up to 90% CLTV
• Loan amounts up to $4 million
• Max cash in hand $1 million, no limit for CLTV < 55%​
• 3 months reserves​
• 12 months from bankruptcy or foreclosure​
• Mortgage history 0 x 60 x 12​
• Combination of business and personal bank statements allowed​
• Condo and condotels allowed
• Cryptocurrencies accepted for reserves, down payments and closing costs

These are only a few of the many differences that you may notice between the bank statement program and other mortgage loan programs. Our lending experts at MortgageDepot are always happy to answer our clients’ questions, and we will assist you with locating the right loan program for your specific situation. To inquire about this program and any other programs that could be suitable for your loan scenario, please contact the MortgageDepot lending team for assistance.

Get in touch with one of our loan consultants for more information.