Bank Statement Loan

Bank statement loan programs are a type of mortgage loan that is designed for self-employed individuals or business owners who have difficulty qualifying for a traditional mortgage due to their variable income. Instead of using tax returns or pay stubs to verify income, bank statement loan programs use bank statements from the past 12-24 months to determine income eligibility.

Pros:

1:  Flexibility: These loan programs offer more flexibility than traditional mortgage loans, making it easier for self-employed individuals or business owners to qualify for a mortgage.
2:  Reduced paperwork: Since bank statement loan programs rely on bank statements instead of tax returns or pay stubs, there is less paperwork involved in the application process.
3:  Higher loan amounts: Some bank statement loan programs offer higher loan amounts than traditional mortgage loans, making it easier to finance larger homes or properties.
4:  Faster approval process: Bank statement loan programs can often be approved faster than traditional mortgage loans, since they rely on bank statements instead of more complex financial documents.
5:  Increased privacy: Bank statement loan programs offer increased privacy, since they do not require the borrower to provide as much personal financial information.

Cons:

1:  Higher interest rates: Bank statement loan programs may have higher interest rates than traditional mortgage loans, which can result in higher monthly payments.
2:  Shorter repayment terms: Some bank statement loan programs may have shorter repayment terms than traditional mortgage loans, which can also result in higher monthly payments.
3:  Limited availability: Bank statement loan programs may not be available from all lenders, which can make it more difficult to find a loan that meets your needs.
4:  Limited options: Some bank statement loan programs may offer fewer options than traditional mortgage loans, such as fewer loan types or repayment options.
5:  Higher fees: Bank statement loan programs may have higher fees than traditional mortgage loans, such as higher origination fees or prepayment penalties.

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Fairway Mortgage, LLC
NMLS #2767473

Office: (541) 654-8285
Cell: (541) 513-9000
Email: contact@fairwaymortgagellc.com
350 West 5th Avenue
Eugene, OR 97401

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