Bank Statments loans 12 months or 24 months

A "12 months bank statements mortgage" is a type of mortgage loan program that allows borrowers to qualify for a mortgage based on their bank statements from the past 12 months instead of traditional income documentation such as pay stubs or tax returns. This type of mortgage is also known as a bank statement mortgage or a self-employed mortgage.Typically, self-employed individuals, freelancers, gig workers, or those with variable income might find it challenging to qualify for a conventional mortgage using standard income verification methods. In such cases, lenders may offer 12 months bank statements mortgage as an alternative option.Here's how it generally works:

Income Calculation: Instead of using W-2 forms or tax returns, the lender will evaluate your income based on the average monthly deposits shown on your bank statements over the last 12 months. They will look for consistent income patterns and stability.

Eligibility Criteria: The eligibility criteria for this type of mortgage may vary from one lender to another. Some lenders may require a minimum credit score, a specific debt-to-income ratio, or a certain amount of reserves in your bank account.

Interest Rates and Terms: Interest rates for bank statement mortgages may be slightly higher compared to traditional mortgages, as they are considered riskier by lenders. The loan terms will depend on the lender, but you can generally expect options for fixed-rate or adjustable-rate mortgages.

Bank Statement Requirements: You will need to provide the lender with your complete bank statements for the past 12 months. They will use these statements to calculate your average monthly income and assess your ability to repay the loan.

It's essential to keep in mind that the availability of 12 months bank statements mortgages and their specific requirements can vary depending on the lender and the current state of the mortgage market.