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If you're looking for ways to mortgage your home, a bank statement loan can help. Here's why bank statement home loans for the self-employed are a great tool.

About 11% of the workforce in the US identify as self-employed. More millennials are getting into independent career paths, which contributes to this figure.

Besides, the digital market has made it easy for freelancers to work from anywhere. However, there is only one problem: Conventional creditors prefer giving out loans to employed people. Lending institutions want assurance that they will get their money back.

Due to the volatility of their incomes, the self-employed aren't favored by creditors. This is why bank statement home loans for self-employed people are a great alternative.

There is a way to finance a monthly mortgage payment even though you are self-employed. Stick around to learn why bank statement home loans for freelancers are a great tool for you.

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1. Retired and Self-Employed Applicants

If you are retired, seeking out a bank statement home loan is an ideal option for you. Most individuals with many years of experience under their belt often have a high net worth.



Your withdrawals, deposits, and balances will reflect when you use your bank statement. On the other side, their little income from pension funds and government programs may not secure them a mortgage.

2. Bad Credit Score

When lending institutions know that a creditor has many lenders, they may charge a higher interest rate. This is to cover for the extra risk they are taking. It's common for creditors with multiple lenders to default payment.



In this case, it's wise to use your bank payments to secure loans for homes. Bank statement home loan providers pay more attention to your current cash flow.

3. Pay in Small Installments

Bank statement home loans for self-employed people are popular because of the low monthly mortgage payment rate. Most freelancers who desire to own a home opt to pay for the long-term option even though it’s more expensive.



For instance, a 25-year loan would cost you less than a 5-year loan due to the compounding interest rate. A bank statement loan provider can allow payments of only the interest amount. This makes the installments much lower than what other mortgage companies offer.

4. Allowing Co-Signing

Some loans for homes have a significant payoff at the beginning. Most homeowners can't afford to pay off 25% or more installments. Thus, bank statement loans have better conditions than government-backed loans.



A bank statement loan provider will demand about 15% as a down payment.

5. Low Down Payment on Large Loans

Some loans for homes have a significant payoff at the beginning. Most homeowners can't afford to pay off 25% or more installments. Thus, bank statement loans have better conditions than government-backed loans.



A bank statement loan provider will demand about 15% as a down payment.

6. Bank Statement Home Loans for Self-Employed People

Bank statement home loans are ideal for you if you aren't employed. Your bank statements prove that you have an income, pay for your expenses, and at least have some savings.



Bank statement home loans for self-employed people accept lower credit scores than other loans. Contact us today if you need any help with mortgage loans.

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