American Dream Home Mortgage provides a loan program designed specifically for entrepreneurs, contractors, or other self-employed individuals whose employment history and tax returns may not reflect a traditional viability for a mortgage.
Through our Bank Statement Loan (BSL) Program, we help individuals qualify for a home loan based on income listed on their bank statements rather than through traditional loan programs. BSLs are set as 30 year term loans with a current market fixed-rate interest. There is no penalty for early pay off or additional payments to your principal balance.
Bank Statement Loan Program Borrower Requirements
- The last two years of personal bank statements are required for income qualification – no tax returns needed!
- A 20% down payment is required at closing
- Borrowers must have a debt-to-income ratio of 50% or better
- Preferred FICO score of 680 or better
Bank Statement Loan Program Details
- Property location can be primary residences, secondary homes, and investment properties, including non-warrantable condominiums
- BSLs are offered as 30-year fixed rate loans with no prepayment penalty
- Loans are available for up to 80% of the value of the home
Bank Statement Loans are not government insured but rather lender provided, so the risk for such a loan is solely absorbed by the lender should the borrower ever default. This is why a down payment and higher credit score are required.
Bank Statement Loans are perfect for non-traditional workers who may not be able to qualify for other home loan options because of the type of self-employed work that they do. If you can show us that you have had a steady income for the last two years through your line of work, we can help you get a loan for up to 80% of your desired home’s value. This loan only works if qualifying borrowers are able to provide at least 20% down at closing.
Other loan options may be available for individuals who cannot meet the 20% down requirement; contact our office to discuss your specific situation and see how we may be able to help.