What Is an Arizona Bank Statement Loan?
A bank statement loan is a non-qualified home mortgage loan (non-QM loan), also known as a stated income loan, that allows borrowers to demonstrate their ability to pay back their loan through the information included on their bank statements. Generally, borrowers need 12 or 24 months of bank statement information to show their lenders as well as a decent credit score. However, in some cases, fewer bank statements are required.
Bank statement loans tend to be well suited for consultants, independent contractors, realtors, online influencers, content creators, and the like. These loans also tend to be a flexible option for retirees who don’t have a steady income to show they can afford a loan.
What Types of Bank Statement Loans Are Available?
We currently offer two loan options for self-employed borrowers in Arizona:
- Personal Bank Statements: qualify on 12 or 24 months bank statements. We count 100 percent of deposits as income.
- Business Bank Statements: qualify on 12 or 24 months bank statements. We count 50 percent of the deposits as income.
It is possible for borrowers to use stated income loans in Arizona as purchase loans as well as refinancing. Through certain refinancing options, self-employed borrowers can then use the cash they get for up to 85% of the value of their home to use towards paying off their debt.
Where Are Bank Statement Loans Available in Arizona?
Looking for a bank statement loan in Arizona? We operate in:
If you don’t see your city on the list, that doesn’t mean we can’t assist you. Griffin Funding provides bank statement loan options across Arizona as well as in surrounding states such as California and Colorado.
What Are the Requirements for a Bank Statement Loan?
In order to qualify for a bank statement loan, prospective borrowers must have:
- Owned their business or been self-employed for at least two years and have at least 10% down.
- A Credit score of at least 620
- Four months of PITI reserves in the bank for loans under $1 million and six months for loans more than $1 million.
Note that for bank statement loans, the minimum loan amount is $100,000 and the maximum loan is $5,000,000.
Advantages of Arizona Bank Statement Loans
The main advantage of bank statement loans in Arizona is that self-employed workers and business owners have a more flexible loan option that’s designed to help them secure a loan. Self-employed workers and business owners don’t need their tax returns, pay stubs or W-2s to get approved for these types of loans. Instead of being limited to income verification through tax returns, you can show proof that you make monthly income deposits to your bank.
However, there are a variety of other benefits that AZ bank statement loans offer to borrowers including:
- Potential to secure a loan with as little as 10% down—with a credit score of 660 or higher.
- Ability to borrow up to $5 million.
- Various loan options including interest-only and fixed- or adjustable-rate mortgages.
- Ability to qualify with a debt-to-income ratio of up to 55%.
- The option to use a cash-out refinance of up to 85% of the property value.
Think a bank statement loan in Arizona might be a good fit for you? Complete our online application today to get the process started.
Who Should Get a Bank Statement Loan in AZ?
Bank statement loans in Arizona are often a favorable option for business owners and self-employed professionals looking to purchase a new home or refinance their current mortgage loan.
It’s common for gig workers, retirees, freelancers, and consultants to seek bank statement loans in AZ because it’s a more convenient way for these borrowers to showcase their income and secure approval for the home loan. Borrowers whose income is adjusted for deductions and other business write-offs might find that a bank statement loan is the most effective way to accurately portray their ability to pay off a loan.
What Other Types of Loans Are Available for Self-Employed Borrowers?
Griffin funding can help borrowers in Arizona find the right mortgage option even if they don’t qualify for a bank statement loan. Here are some other loan programs we offer that might be better suited to your circumstances:
- Asset-based loans: With asset-based loans, your assets are used to show that the loan can be repaid.
- DSCR loans: With debt service coverage ratio loans, approval is based on a property’s cash flow instead of the borrower’s income. We will calculate the DSCR of the property to determine whether you are eligible for the loan—the higher the DSCR, the better the loan terms.
- VA loans: VA loans are backed by the federal government but issued through private lenders. These programs are aimed at providing active and veteran service personnel and their families with Arizona home loan options.
Not sure which loan option is best for you? Speak with one of our knowledgeable loan specialists who can help you through the process today.
Why Choose Griffin Funding for Your AZ Bank Statement Loan?
Griffin Funding is proud to offer a wide variety of flexible loan options for self-employed borrowers, including our Arizona bank statement loans. We strive to provide white-glove, five-star customer service, all while making the lending process as smooth as possible, so you can get the funds you need to move forward with your purchase or refinance.
Apply for Bank Statement Loan in AZ Now
The team at Griffin Funding is dedicated to helping more self-employed borrowers and business owners in Arizona find the right mortgage loan for their needs. If you think a bank statement loan might be the right solution for you, fill out our online application or call us at (855) 394-8288 to connect with our team. Our experts can help you secure a bank statement mortgage loan in Arizona quickly and efficiently.