Securing a Mortgage as a Self-Employed Individual: Understanding Bank Statement Mortgages

Being self-employed has its perks, but it can also come with its share of challenges. One of the biggest challenges faced by self-employed individuals is securing a mortgage. Traditional mortgages require proof of steady income, which is not always easy to provide when you are self-employed. Fortunately, there is a solution: the bank statement mortgage.

A bank statement mortgage is a type of mortgage that allows self-employed individuals to use their bank statements as proof of income. Instead of providing tax returns or pay stubs, you can submit bank statements from the past 12-24 months to show your income. This can be especially helpful if you have fluctuating income or irregular payment schedules.

To get a bank statement mortgage, you will need to provide several months of bank statements, as well as other documentation like your business license, profit and loss statements, and balance sheets. You will also need to have a good credit score and a healthy down payment.

While a bank statement mortgage may have higher interest rates and stricter requirements than traditional mortgages, it can be a great option for self-employed individuals who are struggling to secure a mortgage. If you are self-employed and in the market for a mortgage, consider exploring the bank statement mortgage option.