Bank Statements Loan
Bank Statement loans allow for Self-Employed borrowers to still purchase a home or investment property simply using their bank statement income to qualify.
This Non-QM mortgage product typically uses a factor of a percentage of your annual deposits over a 12 or 24 month period to determine the borrower’s Net Income. This value is then used for debt to income ratios and further qualifying.
DTI (Debt to Income) = Income (from Bank Statements x % Factor) / Monthly Debt Service