Once a lender analyzes your bank activity and determines your debt-to-income (DTI) ratio (which is the percentage of your gross monthly income applied toward your debt), they will determine how much you qualify to borrow.
The criteria for getting a bank statement mortgage as a self-employed borrower varies by lender. But here are some standard requirements you’ll have to meet to secure a bank statement mortgage loan:
12 – 24 months of bank statements showing deposits and withdrawals for cash flow evidence (You can get online statement copies from your online banking account.)
Proof of at least 2 years of self-employment or contract work
660 credit score or higher
20% down payment or 10% down with mortgage insurance
A DTI of up to 50% (try to pay down as much of your debt as you can before you apply)