What Are Illinois Bank Statement Loans?
A bank statement loan doesn’t require you to go through traditional means to get qualified. Instead, your bank statements are used to prove your income. Bank statement loans are one of several self-employed mortgage products that use your 12- or 24-month bank statements to verify deposits and the ability to repay the loan.
Self-employed individuals, real estate investors, gig workers, business owners, and retirees all have complications when attempting to use tax returns because they are not accurate in reflecting real income. The deductions and write-offs on income tax forms are not a true representation of how much an individual earns in these cases, making it difficult for underwriters of conventional loans.
Griffin Funding alleviates those complications with non-QM loan products that verify income in non-traditional ways. By using bank statements to qualify, home loans are within reach for borrowers who would have been denied.
What Areas Are Illinois Bank Statement Loans Available in?
We offer Illinois bank statement loans across the state, in areas including:
- Arlington Heights
- Clarendon Hills
- Lincoln Park
- Gold Coast
No matter what area you wish to purchase, we can assist you in securing a mortgage.
Why Should You Consider a Bank Statement Loan in Illinois?
There are multiple benefits to securing a bank statement mortgage loan Illinois lenders offer. Here are just a few:
- Down payments as low as 10%.
- 12- or 24-month bank statement loan programs.
- The need for tax returns, bank statements, or W2s are alleviated.
- Allows higher debt-to-income (DTI) ratios. In some cases, this could be up to 55%.
- Adjustable and fixed-rate mortgages are an option.
Having access to a bank statement loan in Illinois solves the problem of not being able to meet traditional mortgage loan requirements. With verifiable income, you can still purchase a home.
What Are the Bank Statement Loan Requirements in Illinois?
Bank statement loan requirements in Illinois include having at least 10% down, four months of verifiable mortgage payments in the bank account for any loan under $1 million, being self-employed for at least two years, a credit score of 620, and business P&L statements.
How Much Do You Have to Put Down on a Bank Statement Loan?
Bank statement loan requirements vary based on the finances of the borrower and the amount of the home. 10% down usually qualifies borrowers if they meet all the other requirements. To reduce the monthly mortgage payment, a larger down payment is needed.
Other Non-QM Loans
Aside from Illinois bank statement loans, Griffin Funding offers multiple non-QM mortgage products, such as:
- Asset-based loans: These loans allow borrowers to leverage their current assets to secure a loan. For individuals who have substantial, verifiable assets, this is ideal. While these loans usually carry a high-interest rate, we have wholesale rates and competitive borrowing terms. Additionally, we do not require borrowers to pledge their assets.
- Interest-only home loans: We offer 30-year and 40-year interest-only fixed home loans, in addition to 7-Year5-Year, and 6-Month ARMs. Borrowers only pay the interest on the loan during the first 10 years. Throughout this initial period, no payments will be applied to the principal.
- Recent credit event loans: These loans are designed for individuals who have recently dealt with negative credit events like bankruptcy, short sale, or foreclosure. The longer since the credit event occurred, the better the options.
- FHA loans for first-time home buyers: These loans are available for first-time home buyers and those with less than perfect credit. The loan may be obtained with as little as 3.5% down, but PMI insurance is required.
- VA loans: Active-duty service members, surviving spouses, and veterans qualify for these loans, which are insured by the Department of Veteran Affairs. These loans are favorable because they have a no money down option, as well as lower interest rates.
How to Apply for an Illinois Bank Statement Loan
With Griffin Funding, purchasing your home is easier. Our flexible requirements for bank statement loan underwriting and our loan team work hard to get you what you need. Here’s how to apply:
- Have a 10% down payment. A larger amount will offset costs for a lower monthly mortgage payment.
- Obtain pre-approval. A pre-approval lets you know how much you can afford and can speed up the process. This is when your income is verified for qualification.
- Locate a house. An experienced realtor can assist in locating a house that meets your preferences in location, size, and price.
- Apply with Griffin Funding. You can apply over the phone or online to complete an application. Our loan team will help you with the process to make it simple, quick, and painless.
- Make an offer. Once you locate the house and have pre-approval and funding, your realtor will put an offer on the home. During this time, the seller decides if they want to accept and move forward with the sale.
- Close on the home. If the offer is accepted, the closing process begins. Once everything is completed, you’re a new homeowner!
Find Out if You Qualify for an Illinois Bank Statement Loan
Just because you may not qualify for a traditional loan doesn’t mean you’re out of options. Griffin Funding is one of the best options for obtaining a mortgage regardless of you being a retiree, small or mid-sized business owner, or self-employed.
The world and ways people do business are evolving and so are we. Are you ready to work with a dependable lender? Take the time to fill out our online application and one of our lending officers will help you begin the process.