What Are Bank Statement Loans?
Bank statement loans are mortgage loans that lenders issue based on a borrower’s bank statement information and personal information instead of using their tax returns or financial statements which are common income verification methods. Many business owners and self-employed professionals benefit from being able to use bank statement loans because this information is often a more accurate depiction of their finances whereas their tax information only shows net income. In turn, this makes getting a mortgage more accessible to these types of borrowers.
Can I Get a Personal Loan with Bank Statements?
It is possible to get both personal loans and business loans with bank statements and we currently offer both types of bank statement mortgages in Colorado. When applying for a personal bank statement loan, your credit score, outstanding debts, and other factors can also impact your eligibility, but the main factor of eligibility will be your bank statements that should show you make regular deposits and maintain a balance that proves you can handle monthly mortgage payments.
Types of Bank Statement Loans Available in Colorado
We currently offer two loan options for self-employed borrowers:
- 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.
In Colorado, a 12-month bank statement loan allows borrowers to qualify with just 12 months of bank statements—and most importantly, without tax returns. A bank statement loan in Colorado can be used for your main residence as well as investment properties and second homes.
If a bank statement loan doesn’t sound like the right mortgage program for you, we have a variety of other options including asset-based loans, DSCR loans and VA loans.
How Do CO Bank Statement Loans Work?
The lending process for bank statement loans in Colorado is similar to other states in that it starts with an initial discovery meeting where our team assesses your eligibility based on your bank statements, credit score, and other aspects of your finances.
We can complete your loan application with you over the phone to ensure accuracy or online for your convenience. We’ll strive to get you the most competitive interest rate, which you can then lock in. Once underwriting, inspections, and loan finalization are all complete, we’ll release your funding so you can purchase your home.
If you’re ready to secure your mortgage, get started with Griffin Funding today. Our team of experts specializes in self-employed loans and can help you find the best rate and guide you through each step of the process.
Colorado Bank Statement Loan Example
Let’s get a closer look at how bank statement loans in CO work with a real-world example:
In Denver, Colorado, Mitch ran a gas station for more than five years, but because inventory is difficult to track, getting a loan based on financial statements wasn’t an option. Mitch wanted to provide a home for his growing family and was relieved to find Griffin Funding’s Colorado bank statement loan program.
Griffin Funding took two years of Mitch’s bank statements and was able to count 100 percent of deposits as income. With this great new option for a desirable Colorado home loan, Mitch bought a new home just in time for the new addition to the family.
What Are the Advantages of Bank Statement Loans in Colorado?
One of the greatest benefits of bank statement loans for self-employed professionals and business owners in Colorado is that it gives them the opportunity to more accurately demonstrate their income.
Here are some of the main advantages to consider for CO bank statement loans:
- You can qualify with 12 or 24 months’ worth of bank statements that show you make regular deposits.
- You can secure a bank statement loan with as little as 10% down.
- Credit scores as low as 620 are accepted.
- You can use a CO bank statement loan to purchase a home or for a cash-out refinance of up to 85% of the property value.
- You can borrow up to $5 million.
- Bank statement mortgages are available as fixed- or adjustable-rate loans.
To find out if a bank statement loan is the right mortgage solution for you, speak with one of our loan specialists today.
Areas We Serve
We serve borrowers across the state of Colorado, including the following areas:
- Colorado Springs
- Fort Collins
We encourage anyone interested in a personal or business bank statement loan to reach out so that we can help you secure a home loan that’s right for your circumstances.
Considering other states of residence as well? We also offer loans for borrowers in many states across the U.S., including AZ, CA, CO, CT, FL, GA, HI, ID, MD, MI, MT, NV, NM, NC, OR, SC, TN, TX, VA, and WA. (Pending in IL, UT)
Who Qualifies for a Bank Statement Loan in Colorado?
These loans are specifically designed for self-employed individuals, business owners, and retirees in mind to provide a more flexible option that allows them to secure funding when they otherwise wouldn’t be able to with a traditional loan.
To qualify for a bank statement loan in Colorado, prospective borrowers should provide at least 12 months of bank statements made up of monthly deposits. You must have a credit score of 620 or higher and a debt ratio below 55%.
If you’re unsure whether you qualify, one of our loan specialists can help you complete your application over the phone and present you with your mortgage options.
Apply for a Colorado Bank Statement Loan Today
Griffin Funding specializes in bank statement loans as well as other self-employed loan programs. We are happy to help walk you through the loan application process and find the most suitable rate based on your financial situation. For more information about securing a bank statement loan in Colorado, please call our team of experts at 855-698-1098 or complete our loan application to get the process started.