What Are North Carolina Bank Statement Loans?
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 reviews the money entering an account and determines whether the income is enough to qualify for a mortgage. 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. It is also ideal for people who use their personal accounts to invest their business.
What Areas Are North Carolina Bank Statement Loans Available in?
If you’re a business owner or a self-employed person who cannot qualify for a traditional mortgage, a North Carolina bank mortgage that is based on your bank statements might be the right loan for you.
At Griffin Funding, we offer mortgage loans across the state of North Carolina. Some of the areas we serve include:
- High Point
Why Should You Consider a Bank Statement Loan in North Carolina?
Bank statement loans can be a great option for anyone who has trouble qualifying for a traditional mortgage due to difficulties proving their income. A common example is a self-employed person who does not receive pay stubs or a W-2 like one would receive at a traditional job, but can show a steady history of deposits into their bank account.
What Are the Bank Statement Loan Requirements in North Carolina?
Because of 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. When processing a bank statement mortgage, the lender will review a potential borrower’s finances and determine if the loan is the right decision for the lender. Be aware that it is usually necessary to show at least one year worth of income as a business owner.
Borrowers who are interested in a bank statement loan 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 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 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.
Be aware that the minimum mortgage amount for these loans is $100,000 and the maximum loan is $5,000,000. 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?
The down payment on a bank statement loan will depend on a number of factors, including the amount of money that a borrower wants to get a loan for, the value of the property, the credit score of the borrower, and the amount and length of the borrower’s income.
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.
Other Non-QM Loans
In addition to offering traditional mortgages such as FHA loans, we offer a number of Non-QM loans that provide alternative routes of financing for borrowers. Some of the Non-QM loans we offer at Griffin Funding include:
- Jumbo loans with 10% down: Available for qualified borrowers. These loans are the purchase of large properties, but they require the same type of credit and income checks as traditional loans.
- Asset-based loans: These are mortgages that use other assets, such as a business or other properties, as collateral. These loans are usually ideal for property investors and business owners who have property and assets of great value.
- DSCR loans: These are mortgages that use rental income instead of W2s or tax returns to qualify. A minimum of 20% down-payment is required along with a minimum credit score.
Non-QM loans can be beneficial products for anyone who does not have regular wages, but does have the income necessary to pay a mortgage.
How to Apply for a North Carolina Bank Statement Loan
If you have read through all of the qualification requirements and believe you may be a good fit for this type of loan, feel free to apply online. At Griffin Funding, we will work with you every step of the way to make sure you don’t miss a step in applying for a North Carolina bank statement mortgage.
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 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. Fill out an application today or contact Griffin Funding to learn more about our process and how you could qualify for a bank statement mortgage loan in North Carolina.