Bank statement mortgages use personal or business statements over a set period to calculate qualifying income. This path helps business owners, freelancers, and contractors whose tax returns do not reflect true cash flow. Mike Wright organizes documents, confirms guideline fit, and keeps your file moving from application to closing. Office at 2130 Main St, Suite 250, Huntington Beach. Licensed in AZ, CA, FL, ID, TN, and WY.
Lenders review deposits on personal or business statements across a set period, often twelve or twenty four months, to calculate qualifying income. An expense factor may apply for business accounts. Mike Wright explains which statement type fits best, confirms the period needed, and prepares a clean file so underwriters see a clear and consistent income picture that supports approval and fair pricing.
Bank statement loans support buyers whose returns show lower income due to write offs or variable revenue. Business owners, freelancers, and independent contractors can present true earnings through bank activity. Mike Wright evaluates deposit patterns, seasonality, and stability, then matches you with lenders that value cash flow strength. The result is a path that better reflects how you actually earn.
Preparation matters. Expect statements that cover the full review period, a year to date profit and loss when needed, and clear sourcing for larger deposits. Some lenders request a business license or a letter from a tax professional. Mike Wright builds a tailored checklist, reviews for completeness, and addresses gaps early so your submission is organized and easy for underwriting to approve.
Program rules vary, but down payment levels and reserves can influence pricing and approval strength. A larger down payment may improve terms and reduce monthly cost. Adequate reserves add stability to the file. Mike Wright models scenarios that show cash to close, payment impact by down payment level, and reserve expectations, then helps you choose the combination that fits both budget and goals.
Self employed buyers often value flexible payment design. Many programs offer fixed terms as well as adjustable choices, and some include interest only options for an initial period. Each choice has tradeoffs. Mike Wright compares payment over time, total interest, and equity growth so you can select a structure that supports cash flow today and aligns with your long term plan.
A bank statement loan can be a smart entry point. As equity grows and tax returns season, a future move to a conventional loan may lower costs. Mike Wright tracks milestones such as improved credit, equity percentage, and market rate changes. At the right time, he reviews a refinance path that can reduce payment and lock in terms that support long range goals.
You get a lending partner who understands business cash flow and how underwriters evaluate it. Based in Huntington Beach and serving California, Mike Wright matches documentation to your profile, presents a clear file to the lender, and manages each step from pre approval to closing. Licensed in AZ, CA, FL, ID, TN, and WY, he keeps the process organized and on time.
Start here to see how income is calculated from statements, which documents strengthen approval, and how down payment and reserves affect pricing. Learn the difference between personal and business statement paths, how many months are required, and when a future refinance to a conventional loan can reduce costs. Mike Wright provides guidance from pre approval to closing.
It is a mortgage that uses deposits on personal or business bank statements to document income instead of relying only on tax returns. Lenders review the statements over a defined period and apply a method to determine qualifying income. This approach can better reflect real earnings for self employed buyers and independent professionals with variable revenue.
Business owners, freelancers, contractors, and commission earners who show lower taxable income on returns may benefit. If your deposits reflect strong cash flow but write offs reduce adjusted income, this program can present a fair picture to underwriting. Mike Wright reviews your situation and confirms whether bank statement, 1099, or conventional paths fit best.
Lenders total eligible deposits over the review period and apply an expense factor for business accounts or use personal statements when appropriate. They may average monthly income across the period. Mike Wright explains the method your lender uses, estimates qualifying income in advance, and prepares documents that support a smooth approval.
Either can work. Business statements may require an expense factor to reflect operating costs, while personal statements can show net income flow. The best choice depends on how funds move through your accounts. Mike Wright compares both paths and selects the route that provides the strongest and most accurate qualifying income for your profile.
Common options include twelve or twenty four months, and some lenders accept different periods based on strength of file. A longer period can smooth seasonality and support stability. Mike Wright confirms the requirement for your chosen lender and ensures every month is included so the review is complete and consistent.
Requirements vary by lender, loan size, and property type. A higher down payment and adequate reserves can improve pricing and approval strength. Mike Wright provides side by side scenarios that show payment, cash to close, and reserve expectations so you can select a plan that balances monthly affordability with long term cost control.
Some programs allow gift funds for part of the down payment and closing costs when documented correctly. Assistance programs may be limited. Mike Wright confirms what your lender permits, organizes letters and statements, and shows how these funds appear on your final figures so your file stays compliant and your timeline stays on track.
Yes. Many clients use a bank statement loan to purchase today, then move to a conventional loan when equity and tax returns support it. This can lower costs and may remove mortgage insurance where applicable. Mike Wright tracks milestones and reviews the numbers at key checkpoints to see if a refinance benefits your plan.
