What Is a Bank Statement Loan?
During the application for a traditional loan, lenders will examine tax returns and financial statements to determine whether a borrower can pay back the loan. Bank statement loans in Oregon, on the other hand, use bank statement information and further related details to verify income.
A bank statement loan helps individuals and businesses because the process uses the applicant’s bank statements, which is an alternative form of income as opposed to the net income shown on a tax return. Net income is calculated after expenses and deductions. These loans are particularly useful for self-employed applicants and small business owners.
How Does an Oregon Bank Statement Mortgage Work?
The application process for an Oregon bank statement loan mortgage or loan starts with the application when the lender examines the applicant’s bank statements to calculate income. Individuals and small businesses can use these loans, but the process is also helpful for 1099 income earners.
The applicant should have 12 to 24 months of bank statements available for examination by the lender. An Oregon bank statement mortgage is available for purchasing homes, cash-out refinance, or rate-term refinance. After the borrower submits their bank statements, the lender will reach out to the borrower’s bank to confirm and verify the information in the bank statements.
What Are the Benefits of an Oregon Bank Statement Loan?
The best part about a bank statement loan in Oregon is that it allows anyone who might not get approved for a loan based on their net income to qualify for it based on their bank statements. Anyone who isn’t a traditional W2 employee with a simple and straightforward tax return may benefit from the alternative income verification process of OR bank statement loans.
In addition to the alternative income verification process, an additional advantage is the ability to secure an Oregon bank statement mortgage with as little as 10 percent down. You may also borrow up to $5 million and purchase a home or obtain a cash-out refinance of up to 85 percent of the property value. The minimum credit score is just 620, and you may select fixed or adjustable-rate loans.
With some bank statement loan lenders, applicants can have a higher debt-to-income ratio and still qualify for the loan. For other applicants, a bank statement loan is the best option for obtaining a second home or making an investment property purchase. Sometimes, lenders will allow applicants to use gift funds.
Most lenders have slightly different application requirements, so it’s helpful to investigate those requirements before submitting an application.
Types of Bank Statement Loans Available in Oregon
Applicants may select one of two types of bank statement loans in Oregon. Options include the personal bank statement loan or the business bank statement loan. For personal bank statement loans, the application process allows for 100 percent of bank deposits to count as income. For business bank statement loans, 50 percent of deposits count as income.
If you operate as a sole proprietor, you might not have a business bank account or an account that separates your business income from other deposits. You can still make a choice to apply for a business or personal Oregon bank statement mortgage or loan.
How to Apply for a Bank Statement Loan in Oregon
Applying for a bank statement loan in Oregon is simpler than you might think. All it takes is the application and a number of personal or business records. Once you have your documentation ready and have a clear picture of your credit health, it’s time to fill out an application with Griffin Funding.
What Documents are Needed for a Bank Statement Loan?
You may find it simpler to apply for a bank statement loan versus a traditional loan because the process requires less documentation. The main piece of documentation to gather before the application process is one or two years of bank statements, whether you’re applying as a business or as an individual.
Bear in mind that you may need to also provide personal bank statements when your business and personal bank accounts aren’t kept separate during the normal course of business. Sole proprietors and independent contractors often fall under this designation. It’s also important to check your credit score to ensure it is high enough to gain approval.
Areas We Serve
Griffin Funding works with Oregon bank statement loan applicants across the state and in the following areas:
- Williamette Valley
- Coos Bay
- And more
Contact us to see if we can help you get an Oregon bank statement loan for your new house.
Apply for a Bank Statement Loan
If the idea of a bank statement loan intrigues you, we encourage you to get in touch to begin the application process. We’ll help you through the entire process and keep you informed at every step.
We’ll let you know whether your best option is an Oregon bank statement mortgage or if we have another option—such as an asset-based loan or interest-only loan—to suit your needs better. Get your financial details ready, apply now, and make the call today to Griffin Funding.