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Bank Statement Program: A Solution for Self-Employed Borrowers

August 16, 2023

There has been a steady rise in the number of people who identify as self-employed in the United States – especially since the Covid-19 pandemic.

And a large segment of this population is now investing in homes and commercial properties. However, these individuals often have trouble qualifying for a traditional mortgage loan.

That’s where a Bank Statement Loan can help.

What is a Bank Statement Loan?
A Bank Statement loan is an alternative financing option for borrowers who can’t provide typical income docs generally required from traditional lenders. Instead, these borrowers can qualify for a mortgage by simply providing bank statements.

While lenders generally require borrowers to show proof of income through tax returns, W-2s, or pay stubs, this doesn’t necessarily provide a complete picture of financial history – particularly for self-employed borrowers. For these individuals, you can get a more accurate income picture by utilizing their bank statements. Through a bank statement solution, a full breakdown of what your clients are actually generating every month can be analyzed identifying the borrower’s income pattern.

The income is then considered for loan qualification purposes, taking into account any business expenses or deductions based on the self-employment questionnaire borrowers fill out. Here, the lender can determine the expense factor. While most bank statement solutions give a 50% expense factor, LendSure has a ratio as low as 10%. Analyzing bank statements is ultimately a better indicator of a borrower’s cash flow than what they would normally report to the IRS.

Who Benefits from a Bank Statement Solution?
These individuals are often small-business owners or self-employed (think freelancers, real estate agents, contractors, or even gig workers), and they’re taking over the workforce.

In fact, they’re the fastest-growing segment of our workforce. 36% of U.S. employees are categorized as gig workers, totaling 59 million people. For these types of borrowers, documenting income can be incredibly challenging due to their fluctuating profits and limited history of tax returns.

With a bank statement option, they have the flexibility to use their bank statements – usually over a period between 12 or 24 months –  to determine the qualifying income and to prove their ability to repay a loan.

Perhaps your client is a freelance writer who has irregular income patterns or maybe you’re working with a small-business owner who has a successful startup with positive cash flow, but limited operating history. Whatever the case, these types of borrowers do have the option to secure flexible financing with strong terms. You just have to show them the right solution.

That’s where LendSure can help you!

Closing Bank Statement Loans with LendSure
We understand that every borrower is different, and each requires a unique solution to fit their particular mortgage needs. That’s why at LendSure, there’s no “one size fits all” calculation.

Our Non-QM experts perform extensive, common-sense underwriting that considers your clients’ specific challenges. And the best part? Our pre-qualifications are performed usually within 24 hours, so you can deliver faster service to your clients. Paired with competitive rates and fast funding times, this is a go-to solution for brokers nationwide.

Here’s a quick look at our program highlights:

  • Loan amounts up to $3,000,000
  • LTV up to 90%
  • No tax returns required
  • Business bank statements and personal bank statements permitted
  • The borrower does not have to be 100% owner of the business
  • Multiple business bank accounts are acceptable
  • W-2 with bank statements combinations allowed
  • P&L statements are NOT required
  • Business expense ratio as low as 10%


The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers and ratios, and data to consider, but we know that behind every file, there’s an individual with unique circumstances seeking a loan.

We work hard to offer our commonsense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.

Are you ready to grow your business? Conforming loan approval guidelines can be restrictive, but we want to offer our mortgage broker partners the education, tools, support, and guidance they need to say “yes” to more of their clients. This ensures happy borrowers and opportunities for bottom-line growth. What are you waiting for? Let’s get started!

Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.

Contact Us: (888) 707-7811