How Does a Bank Statement Loan Work in Massachusetts?

Similar to other states, a Massachusetts bank statement loan with Griffin Funding starts with an online application where you’ll provide basic personal and financial information. You’ll then supply 12-24 months’ worth of bank statements from either your personal or business checking accounts as proof of income. These bank statements should show that you’re making consistent deposits and earn enough to repay the loan amount you’re seeking out. 

Underwriters at Griffin Funding will analyze your bank statements and other financial metrics such as your credit score and DTI ratio to determine whether you qualify for a bank statement loan in MA. Once you’ve applied, you can lock in an interest rate and proceed with the home buying process. 

Types of Bank Statement Loans Available in Massachusetts

We offer several different types of bank statement loans in the New England area in order to cater to different borrowers’ needs.

Bank statement mortgages

With these non-QM mortgage loans, you are approved for financing using only your bank statements – no tax returns or pay stubs required. Griffin Funding provides three basic types of bank statement mortgages to best suit your needs:

  • Personal bank statement loans: With these loans, you are using only personal bank statements to qualify. 100% of your deposits count as income. These are a great option as a self-employed mortgage if you’re a sole proprietor or freelancer who uses your personal checking accounts for the bulk of your deposits.
  • Business bank statement loans: Use only your business bank statements to qualify for the loan. In most cases, 50% of your deposits count as income. These can be a good option if you use a dedicated business checking account to handle your income.
  • P&L loans: These use your business’s professionally prepared P&L (profit and loss statement) to qualify for the loan. These provide yet another avenue for you to demonstrate financial stability and income in a non-standard way.

Bank statement refinance loans

Bank statement cash-out refinance loans allow you to secure a loan exceeding your current mortgage balance (up to 80% of your property’s value). You then use these funds to pay off your existing mortgage and spend the remaining funds however you’d like. 

Bank statement home equity loans (HELOANS)

Bank statement home equity loans allow you to tap into your home’s equity without the need for the typical income verification. With this type of financing, all that’s needed to take out a second mortgage is the last 12 or 24 months of business or personal bank statements.

Massachusetts Bank Statement Loan Requirements

The bank statement loan program in Massachusetts is designed to assist those who have been a business owner or self-employed for at least two years or, in some cases, one year if you have more than two years of industry experience. If you’re retired, you may still qualify, as retirement income is often still considered regular, non-traditional income, so reach out to us if you are unsure. You can also download the Griffin Gold app to compare your financing options and take the first steps towards preparing for homeownership.

To qualify for a bank statement loan in MA, you’ll also need to provide at least 12 months of personal or business bank statements. Keep in mind that, though you are welcome to use more than one account to help qualify, they cannot be a combination of business and personal accounts.

Additionally, applicants will need a minimum credit score of 620 to qualify for a bank statement loan. Depending on your personal credit score, you will need to plan on making an initial down payment between 10% and 25% of the financed amount.

Bank statement loans in MA require a minimum loan amount of $100,000 and have a maximum loan amount of $5,000,000. Depending on the financed amount, your bank statements must show between three and twelve months’ worth of potential payments in reserve. 

Though this is typically all that’s needed upfront, we may occasionally request related documents to help build the strongest application and set you up for the best loan terms. 

Why Apply for a Bank Statement Loan in Massachusetts?

Just like making any other financial decision, you should be well informed before choosing to apply for a bank statement loan in Massachusetts. Bank statement loans are a fantastic option for those with non-traditional streams of income who may struggle to get approved for traditional home loans, but still show a strong income and financial stability through their bank deposits. You can even use Griffin Funding’s bank statement loan calculator to see how much you could qualify for.

There are some drawbacks, like any form of financing, including time-in-business criteria and potentially higher interest rates versus traditional loans. However there are several benefits that will no doubt appeal to many individuals:

  • Qualify for up to $5 million in financing using only your bank statements — no need for pay stubs or tax returns. 
  • Down payments as low as 10%.
  • Cash-out refinance up to 80% of your property’s value.
  • Fixed and adjustable-rate options available, as well as interest-only programs.
  • Qualify with a DTI ratio of up to 50%. 
  • Use bank statement loans to purchase second homes, investment properties, and primary residences. 

Areas We Serve

Whether you want to apply for a bank statement loan in Boston or Springfield, we offer mortgages all over the state of Massachusetts. So no matter where you’re at, we have the program to fit your needs. Here is just a small selection of the cities where you can get MA bank statement loans:

  • Boston
  • Salem
  • Worcester
  • Springfield
  • Cambridge
  • Quincy
  • Rockport
  • Stockbridge
  • Provincetown
  • Nantucket 

See If You Qualify for a Bank Statement Loan in MA

Griffin Funding makes it fast and simple to see if you qualify for a bank statement loan in MA. Our streamlined application process helps you quickly lock in your rate, secure a bank statement loan, and move forward in the mortgage process. 

Our knowledgeable staff will take it from there to get you the funding you need, with terms you’re comfortable with, without jumping through a bunch of hoops. We are very experienced when it comes to dealing with bank statement loans and we’ll provide you with excellent customer service throughout the process. 

Ready to get started? Fill out an online application to take the first step towards getting approved for a bank statement loan in Massachusetts. If you have any questions about this type of mortgage, don’t hesitate to reach out to us or download the Griffin Gold app to get personalized assistance from our mortgage professionals.