What is a Bank Statement Mortgage?
For self-employed professionals, freelancers, and small business owners in Urbandale, IA, securing a traditional mortgage can sometimes be challenging. That is where a bank statement mortgage comes in handy. Instead of relying on tax returns that might show significant tax write-offs, lenders use your personal or business bank statements to verify your income.
At The Tyler Osby Team at Fairway Independent Mortgage, we specialize in helping Iowa residents navigate these alternative home loan options. Typically, lenders will look at either 12-month or 24-month bank statements to calculate your qualifying income. A 12-month review is great for businesses with steady, recent cash flow, while a 24-month review can smooth out seasonal fluctuations in your income.
If you have been turned down by a traditional bank before, do not worry. We are experts at providing second opinions on bank statement loans. Often, pairing this approach with a self-employed alternative doc mortgage opens up entirely new pathways to homeownership.
Exploring Asset-Based and DSCR Loan Options
Beyond the standard bank statement mortgage, real estate investors and high-net-worth individuals have other fantastic avenues to secure funding. Two of the most popular non-qualified mortgage (Non-QM) solutions are Asset-Based Loans and DSCR Loans.
- Asset-Based Loans: This unique program allows borrowers to qualify based on their liquid assets rather than their monthly income. If you have significant savings, retirement funds, or investment accounts, those assets can be divided over the loan term to demonstrate your ability to repay the debt.
- DSCR Loans: The Debt Service Coverage Ratio (DSCR) loan is perfect for property investors. Instead of looking at your personal income, the lender evaluates the cash flow of the investment property itself. If the rental income covers the monthly mortgage payment, you can often qualify without showing personal income documents.
These flexible and innovative solutions are part of a broader category of portfolio in-house underwritten mortgages. Our dedicated team in Urbandale is ready to help you find the exact fit for your specific financial scenario.
| Loan Type | Best For | Income Verification Method |
|---|---|---|
| Bank Statement Mortgage | Self-Employed & Business Owners | 12 to 24 months of bank deposits |
| Asset-Based Loan | Retirees & High-Net-Worth Individuals | Total liquid assets divided by loan term |
| DSCR Loan | Real Estate Investors | Property rental income vs. mortgage payment |
Why Choose The Tyler Osby Team for Your Iowa Mortgage
When you are looking for a bank statement mortgage in Iowa, working with a trusted local expert makes all the difference. Tyler Osby is the most recommended mortgage lender in Iowa, boasting over 1,300 five-star Google reviews. We pride ourselves on clear communication, weekly updates, and finding the absolute best loan for your unique situation.
Whether you need a primary residence in Urbandale or an investment property across the state, our team at Fairway Independent Mortgage provides unparalleled service. We know that every borrower has a different story, which is why we are experts at providing second opinions on bank statement loans. If another lender said no, let us take a fresh look at your financials.
Legal Licensing Information: Fairway Independent Mortgage Corporation, NMLS #2289. Tyler Osby, NMLS #8668, State of Iowa License #19545.
Q1: What is a bank statement mortgage?
A bank statement mortgage is a home loan that allows self-employed borrowers to verify their income using 12 or 24 months of personal or business bank statements instead of traditional tax returns.
Q2: Do I need 12 or 24 months of bank statements to qualify?
It depends on your specific business and the lender requirements. A 12-month statement review is common for steady income, while a 24-month review helps average out seasonal business fluctuations.
Q3: Can I use a bank statement loan for an investment property?
Yes, you can use these alternative documentation loans for investment properties. Real estate investors might also consider a DSCR loan, which qualifies based on the property rental income.
Q4: What credit score is needed for a bank statement loan in Iowa?
While requirements vary, most bank statement mortgages require a minimum credit score around 620 to 660. Higher scores often result in better interest rates and terms.
Q5: How do I get a second opinion on my mortgage application?
If you were denied a loan or offered unfavorable terms, contact The Tyler Osby Team. We are experts at providing second opinions on bank statement loans and can often find solutions other lenders miss.
Apply Online with The Tyler Osby Team
Or call us directly at 1-515-991-7102 for a no-obligation consultation!