Before bank statement loans were introduced, self-employed borrowers were often denied for traditional home loans because of this tricky income verification factor. That means that even though a borrower had sufficient income and had a good credit score, they were still being denied because traditional methods for verifying income did not work out.
Luckily, bank statement loans solved this problem so that self-employed borrowers can more easily get accepted for a home loan in Georgia. Learn more about Georgia bank statement mortgages and how you can apply with Griffin Funding.
What is a Georgia Bank Statement Home Loan?
Georgia bank statement mortgage loans verify income with bank statements instead of W2s and tax returns.
By allowing income verification through bank statements, lenders have opened the door to more opportunities for self-employed people, business owners, and retirees who don’t qualify for conventional loans.
Who Qualifies for a Bank Statement Loan?
If you’re currently self-employed or retired, you know that without W2 income, it can be difficult to prove your actual income. This is because net income reflected on your taxes is lower than the income you actually brought in over the year due to deductions. This discrepancy can significantly impact the amount of income reported and leave you below the requirement for a home loan. However, that’s not the case with bank statement loans.
Bank statement loans are designed for individuals who don’t work standard jobs and are often their own employers. Some examples of the types of individuals who may qualify for a bank statement loan include:
- Business owners
- Freelancers, consultants, and independent contractors
- Gig Workers (Uber and Grubhub drivers)
Georgia Bank Statement Loans from Griffin Funding
Griffin funding offers non-QM loans like Georgia bank statement mortgages to provide more borrowers with opportunities to purchase their dream homes in the Peach State. Some of the areas we service include:
- Johns Creek
- Sandy Springs
- And more!
Don’t see your city on our list? Don’t worry! We operate within the entire state of Georgia so that no matter where the home is located, we’ll be able to help you with your statement-only home loan.
Benefits of Georgia Bank Statement Loans
There are several unique benefits to bank statement loans:
- No need to use tax returns for income verification
- Can be approved based on 12 or 24 months’ worth of bank statements
- Only a 10% down payment is required
- A higher debt-to-income (DTI) ratio is typically accepted, depending on your lender
- You can choose between a fixed-rate mortgage or an adjustable mortgage
Our Bank Statement Loan Solutions
We currently offer two main options for our bank statement mortgage loans in Georgia:
- Personal Bank Statements: Qualify on 12 or 24 months bank statements. We count 100% of deposits as income.
- Business Bank Statements: Qualify on 12 or 24 months bank statements. We count 50% of the deposits as income.
Depending on your circumstances, you may also be able to qualify for one of our bank statement loans in Georgia with three month’s worth of bank statements.
Eligibility Criteria for Bank Statement Loans
Your Georgia bank statement home loan eligibility depends on a number of factors. Here is a short list of some of the requirements for our Georgia bank statement mortgages:
- Must provide proof that you’ve been self-employed for at least two years. Some lenders will allow you to be self-employed for one year if you previously worked in the same field before becoming self-employed.
- Must be able to put at least 10% down.
- Must have four months of mortgage payments in your bank account for home loan amounts under $1 million.
- A credit score of at least 620.
- Profit and Loss (PL) statement for the period.
Frequently Asked Questions
Do you have to be self-employed to qualify for bank statement loans?
Retirees also qualify for bank statement loans. However, you must be either self-employed or a retiree to qualify for this program. If you have W2 income along with self-employment income, you may qualify for other home loans.
Can I finance investment property?
Yes, you can use your bank statement home loan to invest in properties or even purchase another home other than your primary residence.
Can I use personal bank statements for a bank statement loan?
Yes, you can use your personal bank statements to qualify for a bank statement loan as long as they are able to prove your income.
Are There Other Types of Home Loans for Self-Employed Borrowers in Georgia?
There are other loans that self-employed individuals may qualify for based on their unique circumstances, including:
- Asset Based Loans: Asset-based loans don’t require income verification because your assets are used as collateral.
- FHA Loans for First-Time Homebuyers: If you’re a first-time homebuyer, you may be able to qualify for this loan that only requires a 3.5% down payment.
- VA Home Loans: Active duty service members and veterans can apply for a VA loan that provides them with benefits through the Department of Veteran Affairs, including the ability to qualify without a down payment.
Apply for a Bank Statement Loan in Georgia
In the past, you might have had to worry about income verification if you’re self-employed or a retiree who wants to purchase a house. Now, with Griffin Funding’s bank statement loan program, you can qualify for a loan through alternative methods, making applying and securing a mortgage much easier.
Ready to apply for a Georgia bank statement loan? Begin the application online today.