Question 1

Who qualifies for a bank statement loan in Killeen?

Accepted Answer

Bank statement loans are designed for self-employed borrowers, business owners, freelancers, gig workers, and independent contractors who have been self-employed for at least two years. You will need to provide 12 to 24 months of consecutive bank statements showing regular deposits. A minimum credit score of 620 is typically required, though some programs accept lower scores.

Question 2

What down payment is needed for a bank statement loan?

Accepted Answer

Bank statement loans typically require a minimum down payment of 10%, though 15-20% down is more common and results in better interest rates. The exact requirement depends on your credit score, loan amount, and property type. Investment properties usually require 20-25% down.

Question 3

Are interest rates higher on bank statement loans?

Accepted Answer

Yes, bank statement loan rates are generally 0.5% to 2% higher than conventional rates because the loans carry more risk for lenders. However, for self-employed borrowers who cannot qualify for traditional financing, the slightly higher rate is far better than the alternative of not being able to purchase at all. Strong credit scores and larger down payments help offset the rate premium.

Question 4

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Most bank statement programs allow either personal or business bank statements. When using business statements, lenders apply an expense factor (typically 50% for service businesses, less for businesses with higher overhead) to determine your qualifying income. Morgan will calculate which option puts you in the strongest position.

Bank Statement Loans in Killeen, TX

Key Benefits

No Tax Returns Required

Personal or Business Statements

12 or 24-Month Programs

Loan Amounts Up to $3 Million

Multiple Property Types

Local Expertise in Killeen, Texas

Bank Statement Loans FAQs - Killeen

Self-Employed? Get Pre-Qualified in Killeen