What is a bank statement loan?

• Provide 12 -24 months of bank statements.
• Provide a profit and loss statement for the business.
• Have a 10% down payment. Maximum 90% loan to value (LTV).
• Proof of business ownership. Business licenses, organizational documents and other related paperwork.
• Have a minimum of 6 months reserves to cover principal, interest, taxes, insurance, and HOA payments if applicable. For a cash-out refinance the cash-out may be used as reserves.
• Have a minimum credit score of 620. Typically, lenders want a 640-credit score or better.
• Have a debt-to-income ratio (DTI) of 45% or less. Most lenders will go as high as 50-55% DTI based on compensating factors such as reserves and LTV.