Can I Get a Bank Statement Loan with a 654 Credit Score?

If you have a 654 credit score, you may be eligible for a bank statement loan.  There are several bank statement loan lenders that offer these programs to borrowers with a 654 credit score.  You can view some of these lenders below.

Bank Statement Mortgage Lenders

The following lenders offer bank statement loans to borrowers with a 654 credit score:

1 – Citadel Servicing

2 – Angel Oak Mortgage

3 – Northstar Funding

4 – First National Bank of America

5 – Griffin Funding

Would you like some help finding a lender?  We can match you with a lender that offers bank statement loans in your location.  The lender that we match you with will have a minimum credit score requirement that is less than 654.

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Bank Statement Loan Requirements

The exact requirements to get a bank statement loan depends on the lender.  Below is some general information on what requirements you might expect from a bank statement mortgage lender:

Bank Statements –  You will generally need to submit either 12 or 24 months worth of bank statements.  Depending on the lender, you may be able to use either your personal or business bank statements (or both).  Most lenders will then take the average of the total income over all 12 or 24 months.  You may also have the option to use only 1 months worth of bank statements with a 1 month bank statement program.

Down Payment – The maximum LTV allowed is usually 90%, which means a minimum down payment of 10%.  If you have a lower credit score (especially under 580), you should expect to need to put closer to 20% down.

Credit Score –  Each bank statement lender has their own minimum credit score requirement.  If you have a 654 credit score, you will meet the credit score requirements for several bank statement lenders.

DTI Ratio – Bank statement mortgages allow higher than usual debt-to-income ratios, with most lenders allowing a maximum DTI ratio of around 50%.

Loan Amount – The maximum loan size varies from one lender to the next.  Some are capped at $2,000,000, while others will loan all the way up to $7,500,000.

P&L Statement –  Some lenders will require a P&L statement (profit and loss statement) that is prepared by a CPA.  Not all lenders will require a P&L though.  Keep in mind, that when there is no P&L required, often only personal bank statements are eligible to be used.

These are some general requirements that you might expect from a bank statement lender.  If you would like to see if you qualify for a bank statement loan, we can help match you with a lender.

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Frequently Asked Questions

Are there options to refinance with a bank statement program?
Yes, you there are options to refinance your mortgage with a bank statement program. This includes rate and term refinancing (to lower your rate and payment), as well as cash out refinancing.

What types of properties can be bought using this program?
Between all the lenders that offer this program type, nearly all home types are eligible.  This includes primary residences, second homes, investment properties, condominiums, and vacation homes.

What other documents and loan conditions are usually required to obtain the loan?
You should expect to also be required to at least submit a business license and appraisal.

Is it possible to have a W-2 co-borrower?
Yes, you can have a co-borrower who uses their W-2 tax returns and income. They will be verified in a traditional manner, along with your income that is verified through bank statements.

How long does the process usually take to close the loan once approved?
If you move quickly providing everything that is required of you, a 30 day closing time is realistic. However, many loans will take 45 days (and in rare cases even longer) to close due to various reasons.

Do you accept income received through credit card clearing houses?
Yes, income that is received through a credit card clearing house, such as PayPal, AMEX, or Square may be used. All income sources are received on a case by case basis, but as long as the income you receive makes sense for your type of business, you may be able to use income from sources such as PayPal.

I only receive income part of the year (seasonal income), how might I qualify?
If you only receive income for part of the year, you may still qualify for a bank statement loan program. Your total income will be averaged out for either 12 or 24 months, so as long as the monthly average meets the necessary income requirements for your loan, you may qualify.

Can you use retirement income for these programs?
Any retirement income that is deposited into your bank account can be used as qualifying income.

Will having any NSF (non sufficient funds) or overdrafts on my bank account affect my chances of qualifying?
Some lenders will only allow you to have up to 3 total NSF / overdrafts on your account in a 12 month period. You may receive an exception, but it will ultimately be up to the underwriter to decide.