Anything can happen in the mortgage process — imagine not meeting the traditional requirements. So, does this mean you should forget about buying your own home in Illinois?
Of course not, and now we’ll explain how bank statement mortgage loans in Illinois can help you buy real estate. This option is worth considering if you invest in real estate, are self-employed, or are retired — meaning you will likely encounter difficulties when using tax returns that do not accurately reflect income. Deductions and write-offs on income tax forms do not represent how much a person earns in these cases, making the job of conventional loan underwriters difficult.
With bank statement loans, you can use your bank statements to prove your income.
What are Bank Statement Mortgage Loans in Illinois?
If you apply for a loan with a bank statement, you will not need to go through the traditional qualification procedure. You can provide bank statements to verify your income, deposits, and your ability to repay the loan.
Bank statements make mortgages available to borrowers turned down due to qualification issues.
Benefits of getting a loan with a bank statement:
- Down payment only 10%
- Loan programs for 12 or 24 months
- There is no need to provide tax returns, bank statements, or W2 forms
- You can increase your debt-to-income ratio. In some cases, this figure can reach 55%
So, even with unverified income, you can still purchase a home in Illinois with a bank statement loan.
What are the requirements for a bank statement loan in Illinois?
- Availability of a down payment — at least 10%
- Four months of verifiable mortgage payments in bank account
- Self-employment for two years
- Credit score 620
Remember, if you want to reduce your monthly payment, you should make a larger down payment on this type of loan. A large amount compensates for the cost of the loan. Also, think about pre-approval, thanks to which you will clearly outline the amount to purchase real estate.