Minnesota Bank Statement Loans

In Minnesota, where diverse industries and economic activities are prevalent, bank statement loans are a viable option for securing a mortgage tailored to unique financial circumstances.

Whether you’re looking for a bank statement loan in Minneapolis or Duluth, we can help. Here are some major cities in Minnesota where Griffin Funding can assist with bank statement loans:

• Minneapolis
• Saint Paul
• Rochester
• Duluth
• Bloomington
• Brooklyn Park
• Plymouth
• Saint Cloud

No matter where you are in Minnesota, Griffin Funding is ready to help you navigate the mortgage process with ease.

A bank statement loan is a non-QM mortgage option that uses bank statements instead of traditional income verification methods like tax returns or pay stubs. They are particularly beneficial for self-employed individuals or those with non-traditional income sources who might have trouble documenting their income through regular means.

Here’s how a bank statement loan typically works:

1. Income verification: Instead of providing tax returns or W-2 forms, borrowers submit several months of personal or business bank statements. These statements are used to calculate average monthly deposits and determine the borrower’s income.
2. Credit considerations: While credit scores are still important, bank statement loans are more flexible with credit requirements compared to traditional mortgages.
3. Higher interest rates: Because bank statement loans are considered riskier by lenders, they may come with higher interest rates and fees.
4. Documentation: Borrowers still need to provide other documentation such as identification, proof of assets, and information about debts and liabilities.

Bank statement loans provide flexibility for borrowers whose income may vary month-to-month or who have difficulty documenting their income through traditional methods.

Here are some key benefits of bank statement loans:

• Flexible income verification: Ideal for self-employed individuals or those with non-traditional income sources who may have difficulty proving income through traditional methods.
• No tax returns required: Unlike conventional loans, bank statement loans typically do not require tax returns or traditional income documentation.
• Finance investment properties: Minnesota bank statement loans can be used to purchase primary residences, second homes, and investment properties in the state.
• Loan amounts of up to $20 million: Access substantial sums of money to purchase a home in a high-cost area or a multi-unit investment property.
• Down payment as low as 10%: Qualified candidates can secure a bank statement home loan in Minnesota with just a 10% down payment.
• Customized terms: Lenders may offer more flexible terms and conditions, accommodating borrowers’ unique financial situations and needs.

Griffin Funding provides several types of bank statement mortgage loans in Minnesota tailored to different financial needs:

• Standard bank statement mortgages: These are traditional bank statement loans where income is verified through personal or business bank statements over a specified period. They are suitable for purchasing a new home or refinancing an existing mortgage.
• Bank statement home equity loans (HELOANs): HELOANs allow homeowners to borrow against the equity in their home, using bank statements to verify income rather than traditional methods like pay stubs or tax returns. This option is ideal for accessing funds for home improvements, debt consolidation, or other major expenses.
• Bank statement cash-out refinance loans: This type of loan allows homeowners to refinance their existing mortgage for a higher amount than what they owe and receive the difference in cash. Bank statements are used to verify income, making it easier for borrowers to qualify for a cash-out refinance based on their current financial situation.

These bank statement mortgage loan options in Minnesota provide flexibility and accessibility for borrowers in the state who may have non-traditional income sources or complex financial situations, allowing them to achieve their homeownership and financial goals.

Qualifying for a bank statement mortgage in Minnesota typically involves meeting certain requirements. Here’s a list of the basic criteria:

• Self-employed: A key part of qualifying for a bank statement loan is that you must have at least two years of self-employment under your belt. In some cases, exceptions can be made if you’re self-employed for less than two years but have several years of experience in the same industry.
• Minimum credit score: While requirements may vary, a good credit score is generally needed to qualify. Borrowers should have a minimum 620 credit score to get a bank statement loan in Minnesota.
• Bank statements: Provide 12-24 months of personal or business bank statements to verify income.
• Debt-to-income ratio: Maintain a reasonable debt-to-income ratio (DTI), typically below 43%; however, this can vary based on the lender’s guidelines.
• PITI reserves: Borrowers are required to have three to six months of PITI reserves for loan amounts under $1.5 million, and six to 12 months of PITI reserves for loan amounts over $3 million.
• Down payment: You must be able to put down at least 10% to 30% of the home’s purchase price when taking out a bank statement loan in Minnesota.

Meeting these qualifications can help borrowers secure a bank statement mortgage in Minnesota, providing an alternative path to homeownership for those with non-traditional income sources.

Considering a bank statement loan in Minnesota? Griffin Funding offers specialized mortgage solutions such as bank statement loans, DSCR loans, and more, which are tailored to your unique financial situation. Whether you’re self-employed, have irregular income, or need flexibility in income verification, our bank statement loans provide a pathway to homeownership.

With Griffin Funding, you’ll benefit from personalized guidance, competitive rates, and the convenience of managing your application through the Griffin Gold app. You can also use our free bank statement loan calculator to see what this type of financing might look like based on your unique situation.

Discover if a bank statement loan is right for you and apply now with Griffin Funding to start your journey towards owning a home in Minnesota.