What Is a Bank Statement Loan?

A bank statement loan is a type of loan that allows you to qualify based on your bank statements instead of traditional income verification methods like W2s and pay stubs. Bank statement loans are very common for small business owners or those who are self-employed. 

Instead of having to show net income on taxes or pay stubs, you are able to submit several months’ worth of bank statements which provide the lender with a history of your account balance and deposits. This makes getting qualified for a home loan a lot easier for consultants, freelancers, gig economy workers, and other self-employed individuals.

Are There Different Types of Bank Statement Loans Available? 

There are several different types of bank statement loans available that you can apply for depending on your financial situation. If you choose Griffin Funding as your mortgage lender, we offer two types of bank statement loans:

  • 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.

You will submit bank statements when you apply for a Hawaii bank statement loan.

Using a Bank Statement Loan: Who Can Own Land in Hawaii?

There are certain requirements that you must meet if you want to qualify for Hawaii home loans and buy land. This is because there are specific rules about who can own land in Hawaii. In Hawaii, there are land ownership laws, which dictates what land can be owned and what land can be leased. This can have an impact on how long you can have a property and what you can do with it.

Since there are strict rules with land ownership in Hawaii, it’s possible to get a leasehold, which more or less grants you the right to use land for a specific amount of time. The duration of time for your leasehold will be arranged with the entity that holds the property and it must be longer than the length of your mortgage.

There are also some opportunities to own Hawaiian land outright, which is known as fee simple property. When you buy this type of property, you will get full ownership of the property and can use it however you like.

When it comes to purchasing property, these are all important conditions to be aware of as you apply for a bank statement mortgage in Hawaii.

How Hard Is It to Get a Bank Statement Loan?

Qualifying for a bank statement loan is generally the same in every state. To qualify for a Hawaii bank statement loan, you need to:

  • Be self employed for at least two years (if less than two years you’ll need to prove that you’ve been in the same line of work for more than two years).
  • Have at least 10% down.
  • Have a credit score of at least 620.
  • Have four months of PITI reserves in the bank for loans under $1 million and six months for loans over $1 million.

With Griffin Funding, you can qualify for bank statement loans in HI with as little as twelve months of bank statements.  

Griffin Funding is a direct lender as well as a broker. Unlike most banks that only offer a few products, we partner with over 40 different banks, lenders, private equity funds, and investors nationwide and offer a large range of products. In addition to bank statement loans in Hawaii, we also offer VA loans, DSCR loans, Non-QM loans, and more.

What Documents Do You Need for a Bank Statement Loan?

To qualify for bank statement loans in Hawaii, you need to show proof of your income with bank statements. 

With traditional loans, borrowers need to show paystubs, tax returns, and W2s, however, those are not typically available for those who are self-employed. Bank statement loans in Hawaii open a door of opportunity that would otherwise exclude self-employed individuals, business owners, retirees, and more.

Areas We Serve 

At Griffin Funding, we serve borrowers throughout Hawaii, so you can access financing wherever you might reside. The areas in Hawaii that we serve include:

  • Hawaii
  • Lanai
  • Molokai
  • Honolulu
  • Maui
  • Oahu
  • Niihau
  • Kahoolawe

We serve both the mainland and the Hawaiian Islands, but for more information about the areas we serve, you can speak with a loan specialist.

Hawaii Bank Statement Loan Example

For example, Mark was a self-employed business owner who had many tax write-offs over the past few years against his gross income. On paper, it showed he only made a third of the income than what he actually made. Buying a second home in Hawaii was always a dream of his and his wife Cindy, but after countless failed attempts to secure a loan, they were starting to lose hope.

Mark and Cindy then came to Griffin Funding and we identified the perfect self-employed loan program, the 24-month business bank statement program. But, as the process moved forward, the team found recent credit events hiding in Mark and Cindy’s past. Like many homeowners that survived the 2008 crash, Mark and Cindy defaulted on their mortgage. Although 10 years had passed, the foreclosure wasn’t finalized until 2017, therefore impacting their credit report now instead of in 2008. Normally, when buying or refinancing a home after a foreclosure you have to wait at least two years (in some cases up to seven years), and it had only been one year since the reporting of the foreclosure. For Mark and Cindy, the dream of owning a second home in Maui seemed to be getting further away.

Luckily, Griffin Funding offers a large scale of loan products to match any person’s situation and was able to find a self-employed bank statement loan that allowed for 1-day out of foreclosure. This type of loan is also known as a Non-Qualified Mortgage, which is a loan that doesn’t comply with the Consumer Financial Protection Bureau’s existing rules on Qualified Mortgages.

In November of 2018, Griffin Funding successfully closed the loan, and Mark and Cindy flew to Maui, Hawaii to get the keys to their brand new home.

Secure Your HI Bank Statement Loan Now

For help with securing HI bank statement loans, apply with Griffin Funding today. Not only are we knowledgeable and dedicated to providing white-glove, five-star customer service, we’ll also help you get a personalized loan that is curated to your specific financial needs. We want to help you find a financing solution that best serves you and helps you in your homeownership journey.

To get the process started, call at (855) 394-8288, or you can apply online directly. We look forward to helping you secure your loan.