Bank Statement Loan

Eligibility:

1. Self-employed individuals or business owners.

2. Freelancers, gig workers, or contractors with irregular income.

3. Borrowers with a steady cash flow shown through bank statements.

Benefits:

1. No Tax Returns Needed: Great for borrowers with high deductions that lower their taxable income.

2. Flexible Income Verification: Uses actual cash flow instead of traditional paperwork.

3. Higher Borrowing Potential: Accounts for real income rather than adjusted taxable income.

4. Ideal for Self-Employed: Tailored for people with non-traditional jobs or fluctuating income.

5. Faster Approval: With fewer documentation requirements, the process is quicker than traditional loans.

Pros:

1. No need for tax returns or pay stubs.

2. Great for people with irregular or non-traditional income.

3. Helps self-employed borrowers qualify for loans more easily.

Cons:

1. Higher interest rates compared to traditional loans.

2. Requires a higher credit score in some cases.

3. May need a larger down payment or proof of consistent deposits.