How Bank Statement Loans Work in Washington, D.C.

District of Columbia bank statement loans work by using your checking account balances to verify income instead of solely relying on pay stubs and tax returns like conventional mortgages. Because of this, bank statement mortgage loans in D.C. tend to have much more flexible credit-grading criteria, making it easier for people–even those with challenged credit profiles–to get approved.

To verify your income, you will need to provide checking account statements received in the last 12 or 24 months. Upon applying, the team at Griffin Funding will also consider your credit score, DTI (debt-to-income) ratio, and other factors to find a loan structure that best suits your needs and financial situation.

Once approved and locked in, you can begin shopping for your new home! Feel free to try our bank statement loan calculator to see what you could qualify for.

Benefits of Bank Statement Loans

The ability to use a bank statement for verifying income is just one of the many benefits of bank statement loans in Washington, D.C. Here are some other reasons why they may be a great fit for you:

  • Qualify using bank statements: If you’re struggling to get approved for a conventional mortgage because you aren’t a W-2 worker, are retired, or are receiving income from another non-traditional source, this may be the answer.
  • Loan amounts of up to $5 million: You can get approved to borrow up to $5 million, increasing your purchasing power to invest in the home of your dreams.
  • Flexible DTI ratio requirements: Most conventional mortgage lenders want to see a relatively low DTI ratio. A Washington D.C. bank statement loan offers more flexibility, usually allowing for a DTI of up to 50%.
  • Down payments as low as 10%: Depending on your credit score, DTI, and bank statements, you can qualify for a down payment as low as 10%, which is right on par with the requirements of typical mortgage loans.
  • Fixed- and adjustable-rate loans: Choose a rate option that best fits your budget and plans for the future. There is even an interest-only option available.

Types of Bank Statement Mortgages Available in Washington, D.C.

Once you’ve decided that a non-QM mortgage is the right fit for you, there are a few great options to help finance whatever loan you need.

  • Standard bank statement mortgage loanTo qualify for a mortgage loan, you must use your checking account statements to verify income instead of pay stubs or tax returns.
  • Bank statement home equity loan (HELOAN): You can borrow against your existing home’s equity, using only the last one or two years’ worth of checking account statements to verify income.
  • Bank statement refinance loan: You can borrow up to 80% of your property value to use as cash for home improvements, unforeseen bills, or to pay off an existing mortgage. This cash-out refinance plan allows you to use the cash however you’d like.

Whether you’re a first-time home buyer in D.C. or are looking to pull some equity out of your existing property, we have you covered.

How to Qualify for a Bank Statement Loan in the District of Columbia

One of the greatest benefits of District of Columbia bank statement loans is the more relaxed qualifying criteria. Here’s how to qualify for a bank statement loan in Washington, D.C.:

  • Time in business: Applicants must prove they’ve been in business for at least two years. Sometimes, you may only need one year in business with at least two years of industry experience. If you are officially retired, you may be able to use your retirement income to meet this criteria.
  • Credit score: To qualify for a Washington, D.C. bank statement loan, you will need a credit score of at least 620. While that is the minimum, keep in mind that the higher the score, the better your approval terms may be. In addition to credit score, your debt-to-income ratio should be 50% or less.
  • Bank statements: In most cases, you’ll need to provide the last 12 to 24 months’ worth of checking account statements. You can use multiple checking accounts to show your financial strength; however, all accounts must be either all business or all personal.
  • Loan amount: The loan amounts for bank statement loans in Washington, D.C. range from $100k to $5 million. Your bank statements will be a deciding factor in this total approval amount.

If you want to begin planning for an application, download the Griffin Gold app to monitor your credit report, analyze your financial needs, and learn more about the application process for a District of Columbia bank statement mortgage.

Is it hard to get a bank statement loan?

Getting approved for Washington, D.C. bank statement loans is relatively straightforward, provided you meet the basic requirements and can provide bank statements. In fact, the scoring criteria are often more flexible than conventional mortgages, especially for business owners, retirees, freelancers, and so forth.

See If You Qualify for a Bank Statement Mortgage in Washington, D.C.

If you’re new to Washington, D.C. bank statement mortgage loans, that’s okay. Griffin Funding is an experienced lender that offers a streamlined application process and a team of loan officers who will walk you through the process and make you feel at ease. We understand that not everyone fits into the standard criteria set by traditional mortgage loans. We take pride in offering an alternative way for everyone to realize their dream of owning a home.