North Carolina Bank Statement Loans Made Simple.

Bank statement mortgages are often the only way a person without regular income can qualify for a North Carolina mortgage. While these loans do not require traditional income verification, they will require a person to use their bank statement or other documents to show that they are qualified to make payments.

Whether you’re looking to get a bank statement loan in Charlotte, NC, or elsewhere in the state, Griffin Funding can help.

Areas We Serve

At Griffin Funding, we offer mortgage loans across the state of North Carolina. Some of the areas we serve include:

From self-employed loans in Charlotte, NC, to investment property loans in Durham, we offer a wide range of mortgage solutions for buyers seeking out flexible terms. 

What Are Bank Statement Loans and How Do They Work in North Carolina?

Unlike a traditional loan where a borrower has to prove his or her income using pay stubs or a W-2, a bank statement loan will use the eligible deposits shown on a bank statement to determine loan eligibility. 

This makes a bank statement mortgage beneficial for anyone who has erratic income from their business or doesn’t receive a W-2 like most people working traditional jobs.

With a bank statement loan, the lender assesses the applicant’s deposits over a 12-24 month period to determine their average monthly income and financial stability. This is often a better way of evaluating creditworthiness for self-employed individuals who may have high amounts of income coming in, but don’t receive pay stubs or a W-2.

Why Get a Bank Statement Loan in North Carolina?

Bank statement loans are a great option for individuals with non-traditional income, like self-employed professionals, freelancers, or business owners who might not qualify for a conventional loan.

Here are some of the main benefits of bank statement loans in North Carolina:

• No traditional income documentation: Unlike conventional loans, bank statement loans don’t require W-2s or tax returns. Instead, lenders review income using 12 to 24 months of personal or business bank statements, which is ideal for self-employed individuals.
• Flexible qualification requirements: Bank statement loans are tailored for borrowers who may not meet the strict criteria of traditional mortgages. This flexibility allows those with fluctuating income or write-offs to qualify more easily.
• Qualify with as little as 10% down: Depending on the lender, bank statement loans may require as little as 10% down, making them a more accessible option for borrowers who want to preserve cash flow.
• Use for various property types: These loans can finance primary residences, investment properties, or vacation homes, providing versatility to meet different goals.
• Quick approval process: With less emphasis on traditional documentation, the approval process for bank statement loans can be faster and more streamlined.

Bank Statement Loan Requirements in North Carolina

Due to their unique nature, each bank statement loan has to be individually considered. Because of this, these loans have some degree of flexibility when it comes to eligibility. Be aware that it is usually necessary to show at least one year’s worth of income as a business owner.

Borrowers who are interested in a bank statement mortgage loan in North Carolina must also:

• Have been a business owner or self-employed for at least two years. This can be documented by showing income through your bank statements. A business license, an active company with the secretary of state, or a letter from a CPA may be required.
• Have at least 10% down. Be aware that this is the minimum for highly qualified borrowers. It is possible to qualify for a mortgage with a 35% down payment with just three months of bank statements.
• Have PITI reserves prepared. Have four months of PITI reserves in the bank for loan amounts under $1 million. Six months of PITI reserves are required for loan amounts over $1 million.
• Have a credit score of 620 or above. A higher credit score can lead to better rates and terms when applying for a bank statement loan in North Carolina.

Be aware that the minimum mortgage amount for these loans is $100,000 and the maximum loan amount is $20,000,000. If you need a loan beyond these limits, give us a call to discuss additional documentation requirements.

How Much Do You Have to Put Down on a Bank Statement Loan?

Bank statement loans typically require a minimum down payment of 10%. 

The exact down payment required on a bank statement loan will depend on a number of factors, including:

• The loan amount 
• The borrower’s credit score 
• The strength of the borrower’s financial profile

This means that it is possible to find a bank statement mortgage with as little as 10% of the total purchase price of the home. It is also possible to refinance with a bank statement loan for 85% of the total value of the property.

Bank Statement Loan Alternatives

If you’re not sure whether a bank statement loan in North Carolina is right for you, here are some alternatives to consider:

• FHA loans: FHA loans are ideal for first-time home buyers or borrowers with lower credit scores, offering lenient qualification criteria and a down payment as low as 3.5%. These government-backed loans can be used to buy a home and also offer streamlined refinance and cash-out refinance options.
• VA loans: VA loans in North Carolina provide unmatched benefits for eligible veterans, active-duty service members, and their families, including no down payment and no private mortgage insurance (PMI). In addition to VA purchase loans, we offer VA streamline refinance and VA cash-out refinance loans.
• Jumbo loans with 10% down: Available for qualified borrowers. Jumbo loans in North Carolina are geared to help individuals with the purchase of large properties, but they require the same type of credit and income checks as traditional loans.
• Asset-based loans: An asset-based mortgage allows a borrower to leverage their liquid assets as income when applying for a home loan. Asset-based loans in North Carolina can be a good option if you have significant liquid assets but a low or inconsistent income stream.
• DSCR loans: These are mortgages that use rental income instead of W-2s or tax returns to qualify. For DSCR loans in North Carolina, a minimum of 20% down payment is required, along with a minimum credit score.

Depending on your needs, you may also consider other financing options like self-employed refinance loans or bank statement home equity loans, both of which we are proud to offer.

How to Apply for a North Carolina Bank Statement Loan

Follow these basic steps to apply for your North Carolina bank statement loan:

• Gather your documents: Prepare 12 to 24 months of personal or business bank statements to verify your income. If it makes sense for your financial situation, you might consider exploring other loan options, like P&L loans, for additional ways to verify your income.
• Apply online or contact a specialist: Begin your application online or contact one of our specialists. We can help guide you through the initial application so you can get pre-approved for a loan.
• House hunting: If you don’t already have a property in mind, this is the time to tour homes with a pre-approval letter in hand. Once you submit an offer on a home that is accepted, you will move on to the next step.
• Underwriting process: During the underwriting process, we will take a deeper look into your financial profile and verify your documentation.
• Closing: The final step of the lending process is closing, when the house is signed over to you and funds are transferred.

You can simplify the application process by downloading the Griffin Gold app. Through the app, you can manage your application, upload documents, and track progress conveniently from your device.

Find Out If You Qualify for a North Carolina Bank Statement Loan

If you’re a business owner or a self-employed person who does not receive regular wages, a North Carolina bank statement mortgage may be the right option for you. With just a few months of bank statements, it is possible to get a mortgage for a primary residence, second home, or investment property.

Want to know what a bank statement loan would look like for you? Take advantage of our bank statement loan calculator to estimate potential loan terms, monthly payments, and affordability. This tool can help you better understand your financial options before applying.

Contact Griffin Funding to learn more about our process and how you could qualify for a bank statement mortgage loan in North Carolina. Take the first step towards homeownership today!