Many people wonder how they can take out a mortgage when they do not have a traditional income. This means that they cannot prove their income by providing a W-2 or other tax information. While you can provide bank statements, it would be necessary to have 24 months worth of bank statements. Other important aspects to take into consideration are whether your credit score is acceptable and whether your debt to income ratio is acceptable.
- If one is on irregular income or is unemployed, they might not be able to get a conventional, Fannie Mae loan with just their bank statement.
- Because one is getting a loan on just a bank statement and is given a subprime loan doesn’t mean that the loan has high interest rates or excessive fees.
- Lenders want to see a solid history of your income earnings, so if you are just providing a bank statement for the loan, make it a 24 months period.
“You might think that it’s not fair if they qualify you on average because it’s lower than the income you make right now, but it’s to protect you. The average takes into account both the highs and the lows and finds the middle ground. This way they don’t qualify you for a mortgage that you can’t afford or qualify you for less mortgage than you can afford.”