The Bank Statement Home Loan

As far as I know this loan no longer exists.

This is an alternative way to prove your income. With a bank statement loan, deposits are averaged over a 12 to 24 month period.

If you are using your personal bank statements to do your loan the lender will typically allow 100% of the deposits to be used as income.

If you are using business bank statement loans to prove you income. The lender will typically allow you to use 70% of the deposits to be used as income.

The bank statement loan works well if one of the borrowers has poor credit. The only catch here is that if the both borrowers checks are direct deposited it will not work.  This will tip off the lender that the income is coming from two separate sources.

If you are self employed the bank statement loan is also a great way to prove income since most self employed people write off a large chunk of their income on their taxes.

Do not get copies of your bank statements unless this is the type of loan you are planning on using. Bank statements can cost up to $5 a piece. So this can get expensive quickly.