When you’re self-employed, proving your income can be difficult, especially when it comes to securing any type of loan. Not having a W2 income can make getting approved difficult, no matter how good your credit score is. Luckily, Maryland bank statement mortgage lenders like Griffin Funding have tailored loan offerings for those in your situation.
Our Maryland Bank Statement Loan program allows self-employed borrowers to get approved for a home loan without showing net income on taxes or the need for pay stubs. Instead, we look at your bank statements to verify your income, making securing a loan easier for self-employed borrowers.
Learn more about how Maryland bank statement loans work and how you can qualify for one.
What is a Maryland Bank Statement Loan?
Bank statement loans have different underwriting guidelines than traditional stated income loans. They are an alternative solution for borrowers who can’t verify their income with tax returns and pay stubs. Also known as non-qualified mortgage loans (or non-QM loans), these nontraditional loans expand the loan criteria to allow for other forms of documentation to show a borrower’s ability to repay.
Who Can Benefit From a Bank Statement Loan?
Anyone who can’t verify their income in the traditional way can benefit from a bank statement loan. These individuals include:
- Business owners
- Freelancers and consultants
- Independent contractors
- Gig workers
While individuals in these circumstances may not be able to qualify for a traditional loan because the net income claimed on their tax returns is not the true net income they make due to things like business deductions. Bank statement loans provide a solution to this problem.
All a borrower has to do is provide the lender with 12 to 24 months of bank statements to show regular deposits. However, in some cases, Griffin Funding can qualify borrowers with as little as a 31-month bank statement.
Bank Statement Loans from Griffin Funding
Griffin Funding partners with local banks, lenders, and investors to offer a range of loan products to fit your budget and unique situation. We can help borrowers throughout Maryland, including these areas:
- Ocean City
- Bel Air
- And more
Benefits of Bank Statement Loans In Maryland
Some of the most notable benefits of applying for a Maryland bank statement mortgage include:
- No need for tax returns
- Income statements are made up of monthly income deposits
- The lender can look at 12 months or 24 months of bank statements
- You can put down as little as 10%
- You can borrow up to $5 million
- Most lenders accept a debt-to-income (DTI) ratio of 55% or lower
- Options for a fixed-rate mortgage or adjustable mortgage
Our Bank Statement Loan Solutions
We currently offer two main bank statement home loan programs for self-employed and retired individuals:
- 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.
You may also be able to qualify for a three-month bank statement loan depending on your circumstances.
Eligibility Criteria for Bank Statement Loans
The eligibility for bank statement loan programs will vary depending on your lender. However, you should expect them to verify the following criteria:
- Must prove that you have been self-employed for at least two years.
- Must have at least 10% down.
- Must have four months of PITI (principal, interest, taxes, and insurance) reserves in your bank account for home loan amounts under $1 million and six months PITI reserves for one-month bank statements.
- A credit score of 620 or above.
- Minimum loan amount of $100,000.
- Profit and Loss (PL) statements.
Bank Statement Loan Application Process
To apply for a bank statement loan, all you have to do is contact us and provide us with the last 12 or 24month’s worth of bank statements. Bank statement loans are processed using our manual underwriting process and are reviewed and verified by real people. Closing a bank statement loan mortgage can take up to 30 days or more.
Frequently Asked Questions
Do you have to be self-employed to qualify for bank statement loans?
You or your co-borrower must be self-employed for at least two years before you can qualify for a bank statement loan. Retirees can also qualify for bank statement home loans in Maryland because they are not receiving the traditional stream of income. If you are employed by someone else, then you qualify for traditional loans such as an FHA loan, VA loan, or conventional loan, but you do not qualify for a bank statement loan.
Can I finance investment property?
Yes, you can use bank statement loans for an investment or a second home.
Can I use personal bank statements for a bank statement loan?
Yes, you may choose to use business statements or personal statements to qualify for a bank statement loan.
Can I still qualify with a low credit score?
Yes, you can qualify for a bank statement loan from Griffin Funding with a credit score as low as 620.
Are there other types of home loans for self-employed borrowers?
Bank statement loans are typically the best option for self-employed borrowers. However, if you have other sources of income like a full-time job in addition to self-employment, then you may be able to qualify for other loans in Maryland, such as:
- Asset Based Loans: Another type of non-QM loan, asset-based loans, use assets as collateral instead of reported income.
- FHA Loans for First-Time Homebuyers: If you or your co-borrower has a full-time job and you are purchasing your first house, you may be able to qualify for an FHA loan with as little as 3.5% down.
- USDA Loans: If you purchase a home in a qualified rural area, you can qualify for a USDA loan with no down payment.
Griffin Funding provides loans in Maryland for all types of borrowers, no matter how they make their incomes. Our loan officers can help you find the best loan for your situation and guide you through the process. Ready to apply for a bank statement loan? Begin the application online today.