What Is a Bank Statement Loan?
As the name suggests, a bank statement loan is a type of loan based on your bank statement deposits. The lender will review your qualified deposits to understand your revenue. They will then use this information to determine how much money they are willing to lend you.
One of the main benefits of a bank statement loan is that it can be easier to qualify for than a traditional loan. This is because the lender is basing their decision on your actual business revenue rather than just your credit score.
Your business’s bank statements are also a good way to show the lender how you have been managing your finances. This can be helpful if you have had some financial difficulties in the past.
Pros and Cons of a New Jersey Bank Statement Loan
There are both advantages and disadvantages to taking out a New Jersey bank statement loan. Before you decide if this type of loan is right for your business, it’s important to understand both the pros and cons.
How to Get a Bank Statement Loan in New Jersey
These loans are based on your average monthly revenue, as well as your credit score and other factors. To qualify, you must have been in business for at least two years and have a credit score of 620 or above. You’ll also need to have at least 10% down for a loan under $1 million, and more down for a loan of over $1 million.
In addition, you’ll need four months of principal, interest, taxes, and insurance (PITI) reserves in the bank.
The minimum loan amount is $100,000, and the maximum loan amount is $5,000,000. If you meet all of these criteria, you could be eligible for a bank statement loan in New Jersey.
What is the Minimum Credit Score for a New Jersey Bank Statement Mortgage?
The minimum credit score for a New Jersey bank statement mortgage is 620. However, the criteria listed above are just the minimum requirements. Your actual loan terms will be determined by your credit score, as well as other factors such as your down payment and income. And, of course, the better your credit score is, the more favorable your loan terms will be.
Areas We Serve
Griffin Funding serves all of New Jersey, including the following cities:
- Jersey City
- Little Silver
- Morris Plains
Other Non-QM Loans from Griffin Funding
Besides bank statement loans, Griffin Funding offers other types of non-QM loans. These include:
- Asset-Based Loans: You can use your assets, such as stocks and bonds, to qualify for a loan. The amount you can borrow will be based on the value of your assets.
- Interest-Only Loans: These loans allow you to make interest-only payments for a certain period of time. This can help you lower your monthly payments if you’re going through a tough financial period. Even though you’re only paying interest, the loan principal will still be accruing. So, you’ll need to make sure you can afford the full loan payment when the interest-only period ends.
- Jumbo Loans: You can qualify for a jumbo loan with as little as 10% down. This can be helpful if you don’t have a lot of equity in your home. With a jumbo loan, you can borrow up to $5 million with a higher down payment.
- DSCR Loans: These real estate investor loans are based on your debt service coverage ratio. This is the ratio of your rental income to your monthly mortgage payment. If you have a high DSCR, you may be able to qualify for a higher loan amount.
Apply for a Bank Statement Loan in New Jersey
If you’re looking for a loan based on your business’s revenue, Griffin Funding offers New Jersey mortgage loans for businesses that have been in operation for at least two years.
You can use your bank statements to show the lender how you have been managing your finances. And, you may be able to qualify for a loan even if you have bad credit. To learn more about bank statement loans in New Jersey, contact us today or fill out our online application form.