Alabama Bank Statement Loans

Griffin Funding provides bank statement loans throughout the state of Alabama. So, whether you want to purchase property in lively cities or serene neighborhoods, we’re here to help you find the best financing solution. Here are just some of the cities where we provide bank statement loans in Alabama:

• Birmingham
• Montgomery
• Mobile
• Huntsville
• Tuscaloosa
• Hoover
• Auburn
• Decatur
• Dothan
• Florence
• And more!

Alabama bank statement loans are non-QM mortgage loans that work a bit differently than traditional mortgages. Instead of relying solely on W-2s, pay stubs, or tax returns to verify income, these loans use your bank statements.

With this self-employed home loan, lenders look at your bank statements over a certain period, usually 12-24 months, to assess your income.

To qualify, you typically need a solid history of deposits into your bank account. Lenders will analyze your deposits to determine your average monthly income. They’ll also consider your expenses to ensure you can afford the loan.

You’ll need to make a down payment, although the requirements vary depending on the lender and your financial situation.

Interest rates on bank statement loans may be slightly higher than conventional mortgages to offset the increased risk for lenders. However, mortgage interest rates can vary depending on credit score and down payment amount.

How much house can you buy with a bank statement loan in Alabama? Try out our bank statement loan calculator to estimate the maximum home price you might be able to qualify for.

Bank statement loans in Alabama offer numerous benefits for borrowers, providing an alternative financing solution for those who may not qualify for a conventional loan because of how they earn their income. Here are some advantages of these loans:

• Flexible income verification: Bank statement loans allow self-employed individuals and freelancers to qualify based on their bank statements rather than traditional income documents like tax returns.
• Expanded eligibility: These loans open doors for borrowers with non-traditional income sources or irregular earnings, making homeownership more accessible.
• Simplified application process: With fewer income verification requirements, the application process for bank statement loans is often quicker and more straightforward than traditional mortgages.
• Down payments as low as 10%: If you have a higher credit score, you may qualify for a down payment of just 10%, which can make homeownership more attainable for borrowers with limited savings.
• Higher DTIs accepted: DTI ratios of 50% can qualify, making it easier for those with more debt to qualify for a bank statement loan in Alabama.
• Fixed- and adjustable-rate options available: Choose the loan structure that’s best for you. With fixed-rate mortgages, you’ll enjoy the stability of consistent monthly payments. On the other hand, adjustable-rate mortgages (ARMs) offer initially lower interest rates and monthly payments, but those rates may fluctuate over time, potentially increasing your payments in the future.
• Interest-only option available: You can choose an interest-only bank statement loan in Alabama, allowing you to pay only the loan’s interest for a predetermined period. This option provides flexibility and affordability during the first several years of homeownership.

Griffin Funding offers a range of bank statement mortgage loans in Alabama tailored to your unique financial situation. Your options include:

• Standard bank statement mortgages: Our standard bank statement mortgages in Alabama are ideal for borrowers who need an alternative to traditional income verification methods. With these loans, you can qualify based on bank statements, offering more flexibility.
• Bank statement home equity loans (HELOANs): If you’re already a homeowner and looking to tap into your home’s equity for major expenses or investments, our bank statement home equity loans offer the same great benefits as traditional HELOANs. With flexible qualification criteria and competitive rates, you can access the equity in your home to fund home improvements, large expenses, debt consolidation, or other financial goals.
• Bank statement cash-out refinance loans: With a bank statement refinance loan, you can leverage the equity you’ve built up in your home to access cash. This loan replaces your home loan with a new, larger one, paying off your old loan and giving you access to cash you can use for everything from renovations to debt consolidation.

Eligibility criteria for a bank statement mortgage in Alabama vary by lender. In general, to qualify with Griffin Funding, you’ll need to meet the following requirements:

• Business ownership or self-employment: To be eligible for a bank statement loan, you must have a track record of business ownership or self-employment for at least two years. Alternatively, we also consider applicants with one year of experience as a business owner or self-employed professional, provided they have at least two years of experience within the same field.
• Down payment: The required down payment depends on your credit score. For instance, you can get a 10% down payment with a credit score of 720 or higher, but you’ll need to make a 25% down payment if you have a credit score of 620.
• Reserves: The required reserves depend on the loan amount. For example, loans under $1 million typically require three months of reserves, while those over $1.5 million may need reserves equivalent to twelve months of principal, interest, taxes, and insurance (PITI).
• Bank statements: Bank statements are the primary way your lender will calculate your income, so you’ll need to provide anywhere from 12 to 24 months’ worth to demonstrate your financial health and ability to repay the mortgage loan.
• Credit score: A minimum credit score of 620 is required to qualify for a bank statement loan in Alabama.

In addition to these requirements, you’ll need enough equity built up in your home to qualify for a HELOAN or cash-out refinance.

See if you qualify and manage your home loan throughout the entire process with the Griffin Gold app. Download the app today to manage your finances, upload documents, and streamline the mortgage process.

If traditional income verification methods are a barrier to securing a home loan, Alabama bank statement loans might be the right option for you. Our bank statement loans provide flexible options for self-employed individuals, gig workers, seasonal workers, and others.

With streamlined application processes and competitive rates, bank statement loans in AL make homeownership more attainable for a wider range of borrowers. Partner with a trusted mortgage lender in Alabama and apply for a mortgage today to see how much you might qualify for.