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Bank statement loan requirements
A clear list of what lenders usually review, written so you can start gathering documents today.
Requirements vary by program, but most look at six things: credit, self-employment history, the statements themselves, reserves, the property and any past credit events. Select programs start from credit scores in the 600s.
Ranges below are general and describe select programs. They are not a promise that you will qualify.
The six areas a file is judged on
| Area | What lenders commonly review |
|---|---|
| Credit | Score, payment history, recent inquiries and open balances. Select programs start from scores in the 600s, and stronger credit opens more choices |
| Self-employment history | Often about two years. Select programs may accept one year with proof. See the proof guide |
| Statements | A full, unbroken series for the window, with every page, from accounts that are in your name |
| Reserves | Savings left after closing, often counted in months of housing payments. Larger loans may need more |
| Property | Type, condition, use and location. Appraisal and title review apply |
| Credit events | Past foreclosure, short sale, bankruptcy or similar events usually require a waiting period that varies by event and program, often between one and four years |
Documents to start collecting
- Government photo ID
- 12 or 24 months of statements for each account that holds income
- A letter from a CPA, enrolled agent or licensed tax preparer, if your program uses one
- Proof of business ownership and active status
- Asset statements for funds to close and reserves
- A list of your current debts
- A purchase contract, or your current mortgage statement for a refinance
Questions lenders may raise about your statements
- Non-sufficient funds items, which can be reviewed and in some cases tolerated in small numbers.
- Large deposits that do not match your line of work.
- Frequent transfers between your own accounts.
- Recent changes in how clients pay you.
Why requirements shift
Different lenders fund different programs, and each has its own guidelines. A scenario that does not fit one program can fit another, which is why the right first step is a conversation, not a guess.
Related
Check your file against real programs
A loan officer can tell you where you stand today.
Frequently asked questions
Can I qualify after a bankruptcy or foreclosure?
Possibly, after a waiting period that varies by the event and the program. The longer you wait, the more programs tend to be open to you.
How much cash will I need?
That depends on the property, the program and the loan structure. A loan officer can outline cash needs for your scenario without you guessing.
Do I need a high credit score?
No single score decides everything. Select programs begin in the 600s, and stronger scores generally open more options.