Bank Statement Mortgage
Helping self-employed or non-traditional income borrowers access mortgages using bank statements.
King Mortgage Group, LLC provides clear guidance and responsible support for unique financial situations.
Explain What a Bank Statement Mortgage is
A non-QM (non-qualified mortgage) option where income is verified using 12–24 months of personal or business bank statements. Common for self-employed borrowers, freelancers, and small business owners. Offered by select lenders (not government-backed).
Help Determine If It’s a Good Fit
Explain that tax returns may not reflect true cash flow due to write-offs, higher interest rates than conventional loans, and larger down payments (often 10–20%+) and that strong credit and cash reserves help.
Help Them Prepare Early
Encourage pre-planning: Keep consistent, documented deposits; separate business and personal accounts; avoid unexplained large cash deposits; and maintain reserves for closing and post-closing. Focus on organization and transparency.
Explain the Process Simply
Pre-qualification with a lender experienced in bank statement loans, averaging monthly deposits over 12–24 months, applying expense factors if needed, and completing appraisal, underwriting, and closing similar to other mortgages.
Explain Pros & Cons Clearly
Pros: qualify without tax returns or W-2s, better reflects real cash flow for business owners, and flexible compared to conventional loans.
Cons: higher rates and fees, fewer lenders, not ideal if a borrower can qualify conventionally.
Help Avoid Common Mistakes
Avoid mixing business and personal finances, changing banks mid-process, assuming all deposits count as income, and waiting until the last minute to organize statements.
Connect to the Right Resources
Lenders who specialize in non-QM loans, mortgage professionals experienced with self-employed borrowers, financial counselors, or CPAs for income planning (ethical and legal).