Bank Statement Loans in Tennessee
Tennessee bank statement loans can help self-employed individuals, business owners, and others with non-traditional employment circumstances apply for a home loan. By using a bank statement loan to verify your ability to repay your balance, Griffin Funding makes home loans accessible and attainable for a variety of borrowers.
Table of Contents
Featured In:
Areas We Serve
We provide bank statement mortgages in Tennessee across the entire state. From the bustling streets of Nashville to the scenic mountains of Gatlinburg, our lending services are available wherever you call home. Some of the major areas we serve include:- Nashville
- Memphis
- Knoxville
- Chattanooga
- Murfreesboro
- Franklin
- Johnson City
- Clarksville
- Jackson
- Cleveland
- Oak Ridge
Think you qualify for a loan? Contact us today to find out!
Contact UsWhat Is a Bank Statement Loan?
A bank statement loan is designed specifically for self-employed borrowers who might not qualify for traditional mortgages. Instead of requiring tax returns, pay stubs, or W-2s, these loans use your bank statements to verify your income. We’ll review 12-24 months of your bank statements to calculate your average monthly income. This approach gives us a clear picture of your actual cash flow, which is often more relevant than tax returns that might show lower income due to business deductions. Use our bank statement loan calculator to get a rough idea of what you might qualify for before starting the application process.Benefits of Bank Statement Loans
For many self-employed individuals, bank statement loans in Tennessee offer several unique advantages:- Flexible income verification: Lenders won’t require traditional tax returns or W-2s to verify income for these self-employed mortgages in Tennessee.
- Higher approval chances: Some lenders don’t know how to work with self-employed borrowers and their unique income situations. With bank statement loans in Tennessee, you may have better approval odds.
- Competitive rates: While rates may be slightly higher than conventional loans, they reflect these loans’ unique flexibility. Many borrowers find the slight premium well worth the ability to qualify based on their actual income rather than tax returns.
- Quick processing: Bank statement loans often move through underwriting faster because the income verification process is streamlined.
- Various property types: These loans aren’t just for primary homes — you can use them to purchase or refinance primary residents, second homes, and investment properties.
Think you qualify for a loan? Contact us today to find out!
See if you QualifyTennessee Bank Statement Loan Requirements
To be eligible for a bank statement home loan in Tennessee, you must typically meet the following criteria:- Minimum credit score: Lenders generally require a credit score of 620 or higher to qualify. This demonstrates your history of managing credit responsibly and helps secure better loan terms.
- Down payment requirements: You’ll need to prepare a down payment of at least 10-20% of the purchase price, depending on your specific loan program and qualifications. While this is higher than some conventional loans, it helps offset the flexible income verification process.
- Bank statement history: Lenders will review 12-24 months of your bank statements. These statements should show a consistent pattern of deposits and strong cash flow that supports your ability to make monthly payments.
- Business history documentation: Most programs require at least two years of self-employment history, though some may consider shorter timeframes for borrowers with strong financial profiles and previous industry experience.
- Debt-to-income ratio: Most lenders prefer that your total monthly debt payments stay below 43% of your monthly income. This ensures you have enough cash flow to comfortably manage your mortgage payments alongside other obligations.
Alternatives to Bank Statement Loans
While Tennessee bank statement loans are excellent options for many borrowers, you might also consider these alternatives:- Asset-based loans: Instead of using income to qualify, these loans look at your total assets as the basis for approval. Lenders will consider liquid assets like savings accounts, CDs, retirement accounts, and investment portfolios. They typically use a portion of your total assets to calculate a theoretical monthly income, making these loans particularly attractive for borrowers with significant savings but lower documented income.
- FHA loans: These loans offer more flexible qualification requirements and lower down payment options (as little as 3.5% down). While they still require income verification, FHA loans often have more forgiving credit requirements.
- VA loans: Available exclusively to veterans, active duty service members, and eligible spouses, VA loans offer some of the best terms in the industry. These loans require no down payment, have competitive interest rates, and don’t require private mortgage insurance. While income verification is still needed, the VA’s flexible guidelines often make qualification easier.
- DSCR loans: Debt service coverage ratio (DSCR) loans are specifically designed for investment properties. Instead of focusing on your personal income, these loans qualify you based on the property’s potential rental income. If the expected rent covers the mortgage payment plus a buffer, you may qualify regardless of your personal income situation.