A bank statement loan is a mortgage program designed for self-employed borrowers, business owners, freelancers, and independent contractors who do not have the traditional W-2 income documentation that conventional loan programs require. Instead of using tax returns to verify income, a bank statement loan uses 12 to 24 months of personal or business bank statements to calculate qualifying income based on actual cash flow.
For many successful self-employed professionals in Central Arkansas, tax returns significantly understate their actual income because of deductions and write-offs that are standard business practice. A bank statement loan solves that problem by looking at what is actually deposited into your accounts rather than what is reported on a tax return. If you run your own business in Benton or anywhere across Arkansas and you have been told you do not qualify for a conventional loan, a bank statement loan may be exactly what you need.
For self-employed borrowers whose tax returns do not reflect their true earning power, this is the most significant benefit. Income is calculated based on your bank deposits, which often paints a more accurate picture of your financial strength.
Bank statement loans focus on what you actually earn and deposit rather than what your taxable income shows after deductions. This is a fairer measure for many business owners who are financially strong but appear lower income on paper.
Bank statement loans can accommodate a range of loan amounts, making them suitable for purchasing primary residences, second homes, and investment properties across Central Arkansas.
These loans can be used for a variety of property types including single-family homes, multi-family properties, and in some cases commercial real estate, giving self-employed buyers in Arkansas a wide range of options.
Submit your application at jakearey.com. Our Benton based team reviews your file the same day and begins the pre-approval process once your bank statements and supporting documents are received.
Our team reviews your bank statements, typically 12 to 24 months, and calculates your qualifying income based on your average monthly deposits. For business accounts, a percentage of deposits is typically used to account for business expenses.
Once income is calculated and your overall financial profile is reviewed, we issue your pre-approval. This tells you exactly what you qualify for and puts you in a position to make offers on homes in Central Arkansas with confidence.
Our in-house team handles all processing while an appraisal is ordered. Your file then moves through underwriting for final approval. We keep you informed throughout so there are no surprises.
Once you receive your clear to close, closing day is scheduled. Our team makes sure everything is in order so the process finishes smoothly.
A bank statement loan is the right fit for self-employed borrowers, business owners, freelancers, real estate investors, consultants, and anyone else whose income is earned outside of a traditional W-2 employment arrangement. If you have strong revenue flowing through your bank accounts but your tax returns do not reflect it accurately, this program gives you a viable path to homeownership in Central Arkansas.
It is also a strong option for buyers who have experienced income growth in recent years and want their current earning potential to be the basis for loan qualification rather than a historical average that does not reflect where their business is today.
Most bank statement loan programs require 12 to 24 months of statements. The longer the history, the more data the lender has to calculate a reliable average monthly income. Our team will let you know exactly what is needed during the application process.
Yes. Many borrowers use business bank statements, in which case a percentage of the deposits is used to calculate income after accounting for typical business expenses. Our team will walk you through how this calculation works for your specific situation.
Bank statement loans are considered non-QM products and typically carry slightly higher interest rates than conventional loans. However, for self-employed borrowers who cannot qualify conventionally, the rate difference is often well worth the access to financing that would otherwise not be available.
Self-employed borrowers need a lender who understands how their income works and knows how to present a loan file effectively. Our team has experience with bank statement loans across Central Arkansas and we handle everything in-house so the process moves efficiently from start to finish.
We communicate clearly, move quickly, and take your business seriously. If you have been turned away by other lenders because your tax returns do not tell the full story, our team will take the time to understand your situation and find the right path forward.
Whether you own a business in Benton, work as an independent contractor in Saline County, or earn your income in any other self-employed capacity across Arkansas, our team is ready to help. Apply online at jakearey.com and we will be in touch the same day.
If you are self-employed and ready to purchase a home in Central Arkansas, a bank statement loan may be the solution you have been looking for. Submit your application today and let our team get to work finding the right program for your situation.
.svg)
.png)
