Using Business Bank Statements to qualify for a mortgage
12-month business bank statement loans" typically refer to a type of loan program where a borrower's income is determined based on their business bank statements rather than traditional income documentation such as tax returns or pay stubs. This type of loan is often categorized as a Non-Qualified Mortgage (Non-QM) because it doesn't meet the criteria set by the Qualified Mortgage (QM) rule.
In these types of loans, lenders may look at the business bank statements for the past 12 months to assess the borrower's income and ability to repay the loan. This can be advantageous for self-employed…
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