What is a Bank Statement Loan?
A bank statement loan is one of many types of non-QM loans that don’t require the use of traditional proof of income to qualify for a mortgage. They’re called non-qualifying mortgages because they don’t follow the lending guidelines as laid out by the Consumer Financial Protection Bureau’s (CFPB) requirements to be termed a traditional mortgage. Non-QM loans are just as valid as a QM loan, and lenders make sure to follow lending laws and guidelines from start to finish. That means non-qualifying mortgages for self employed in Oklahoma are what they seem, and there are no underhanded practices used in their creation.
Other types of loans that are similar to bank statement loans for self employed in Oklahoma include asset-based loans and debt service coverage ratio loans, or DSCR loans. These types of loans don’t require proving income for the purpose of underwriting, but do give borrowers access to resources to help them make a large purchase such as a home or investment property.
Types of Bank Statement Loans
There are different types of bank statement loans in Oklahoma, chiefly personal and business bank statement loans. Getting a home loan with a personal bank statement is processed in the same way as a mortgage using business bank statements, but there are differences when it comes to qualifying.
Personal bank statement loans
Personal bank statement loans in Oklahoma require showing anywhere from 12 or 24 months of bank statements to the lender. All deposits, regardless of their source, count as 100% income for the purpose of determining how much you can borrow. A personal bank statement loan can be obtained for use toward paying off personal debt or to obtain a mortgage.
Business bank statement loans
A business bank statement loan also requires 12 or 24 months of bank statements for qualifying, but only counts 50% of deposits as income. However, Griffin uses a sliding scale for expense ratios based on the type of business that you own.
A loan expert at Griffin Funding will guide you through the application process. They’ll let you know how many months of bank statements you’ll need, along with how much you can borrow.
How do Bank Statement Loans Work in Oklahoma?
Mortgages for self employed in Oklahoma follow a process that’s similar to getting a traditional loan. The process for getting a bank statement loan from Griffin Funding goes as follows.
This meeting takes place in-person, over the phone, or online with a mortgage strategist. The Griffin Funding mortgage strategist asks you questions and assesses your eligibility for different types of mortgage. For example, you may be looking for a bank statement loan, but you may qualify for the FHA loans for first-time home buyers program.
We work with you to complete the application for bank statement loans for self employed in Oklahoma. This can be done online or over the phone.
Locking in the rate
The interest rate is locked in over the phone with your approval, and at the lowest rate possible.
Application and disclosures
The application and disclosures is a packet of digital paperwork that includes your application and all the disclosures required by law regarding your loan.
Supporting documentation for financing
You’ll receive a checklist of the documents that are required for the loan and give you instructions for their submission.
Your application and supporting documents are sent to the loan processors for review and to look for potential issues that can affect your application and eligibility.
Griffin Funding orders an appraisal of the home to make sure that the house is in good shape and appraises for its purchase price. This is to ensure you pay the right price for the home and not more than it’s actually worth.
Once the mortgage strategist gets notified that your loan is approved, they’ll contact you and let you know of any further documents that are needed for finalizing the loan.
After your loan has been approved, you’ll go through the final leg of the lending process that includes meeting with a mobile notary, and recording the funding after documents are signed, enabling you to close on your home.
Who is Eligible for a Bank Statement Loan in Oklahoma?
Just about anyone who can show proof of income through a bank statement is eligible for bank statement loans for self employed in Oklahoma, but anyone who can show sufficient income is eligible. Sole proprietors, people working in the gig economy, consultants, contractors, retirees, and even realtors are eligible for a bank statement loan.
The criteria to qualify for a bank statement loan in Oklahoma includes:
- Self-employed income or business owner for at least two years
- Minimum of 12 months of bank statements
- Minimum credit score of 620
- Debt-to-income ratio is under 55%
- Have four months of PITI reserves in the bank
- Have 10% down for a 90% loan-to-value ratio
A bank statement loan works on the principle that not everyone has steady income throughout the course of a year, yet still earns an average income all the same. You can have one source of income or multiple sources. What matters is that you can show proof of income through your bank statements.
Advantages of Bank Statement Loans in Oklahoma
The advantages of a bank statement loan in Oklahoma for self-employed individuals are many. They include:
- Tax returns are not required
- 12 to 24 months of bank statements are looked at
- Only requires 10% down
- Can do a cash-out refinance up to 85% of the value of the property
- Maximum borrowing amount is $5 million
- Options for an interest-only, fixed-rate, 40yr term, or adjustable mortgage
Apply for a Bank Statement Loan in Oklahoma Today
Griffin Funding specializes in mortgages for those who are self-employed in Oklahoma, but we also offer other types of loan products for residents of the state. Our mortgage specialists are ready to help you secure a loan that meets your needs and with the best possible interest rate. Contact us today to learn more about how we can make Oklahoma bank statement loans work for you.