Bank statement home loans make it easy for homebuyers to fulfill their dream of having a home that could otherwise not possible with other home loan options. Also known as self-employed mortgages, bank statement home loans allow you to secure a mortgage without the documentation you would normally use to validate your income. It uses a different form of information to verify the income of the home buyer.

Bank Statement Home Loans in Houston may be the ideal option for you if you have a unique occupation of if you simply want to perk up the terms of your mortgage. Here, we have listed down a few situations when you can choose this home loan option. 

  • You are a self-employed person 

Self-employed home buyers are the ones, who benefit the most from this kind of home loan program. Not having typical income forms makes it difficult for a self-employed person to prove their income. Even using tax returns will have its own set of issues, but you will not face any problem when you opt for this loan program. This loan will allow you to prove months of financial data and show your ability to pay back loans. It will give the lender a good look as to how much a borrower can afford. The use of bank statements will ultimately allow you to completely use your income for the loan you need. 

  • You have seasonal jobs 

In case you have earned a good amount of money all through the year, but take a break during the winter, it can be difficult for you to get approval for a home loan program. Bank statement home loans will allow you to properly document how much you make. But for that, you will most likely need to have been on a seasonal job for at least two years. The mortgage lender will calculate your salary for the whole year and use this number to qualify for the loan. Moreover, these loans will allow you to use other income forms, including a side work that is provisional, to assist you in getting approved for a mortgage loan.

  • You earn a commission-based salary 

If you a commission-based individual, like a sales representative or an employee whose job is based on specific performance, but don’t have a particular amount coming in that typical salaried earners have, then also you can apply for this loan program. One month you can earn thousands of dollars and in the next couple of months; you may not earn even a few hundred dollars. It can make it difficult for you to get approval for a loan program. But by using bank statements home loans, you can prove your income and get affordable loans.

  • You are a retired person 

Retirement assets could be hard to use to qualify for a mortgage loan. In various mortgage applications, a borrower’s working income is used to get approved for a home loan. However, you don’t have a paycheck any longer. You can use retirement funds; however, there is a specific and limited process for using retirement accounts. Bank statement home loans can make qualifying for a loan easier, as long as you can use them to prove you have a regular income from several retirement accounts. In most cases, you have to prove that you have at least three years of income from your retirement account.

Besides, if you want to reduce interest rates or don’t want to make a large down payment, bank statement home loan will be the right choice for you. So, what to wait for? Apply for this loan program today. 

Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.

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