Bank Statement

Credit Requirements

The specific credit requirements for a Bank Statement purchase loan can vary depending on the lending institution and the specific loan program, however when analyzing a borrower’s credit history, a bank statement mortgage underwriter will consider these common guidelines:

  • Lenders will typically look at your credit score to assess your creditworthiness. The minimum credit score required can range from 580 to 620, but having a higher score will increase your chances of approval and potentially result in more favorable loan terms. A good credit score indicates a strong history of responsible borrowing and repayment.
  • Lenders will review the length of your credit history, which shows how long you’ve been using credit. Generally, a longer credit history is preferred, as it provides more information about your credit management habits. Lenders will require a minimum credit history of 24-36 months.
  • Lenders will examine your payment history to see if you have a track record of making payments on time. Late payments, delinquencies, or collections can negatively impact your creditworthiness. Having a consistent history of on-time payments enhances your chances of approval.
  • Lenders will also consider any derogatory history on your credit report, such as bankruptcies, foreclosures, or judgments. This type of negative history can significantly impact your eligibility for a loan. Some lenders will have specific waiting periods after such events before they consider your application.

Different lenders have specific credit history requirements and underwriting guidelines for Bank Statement purchase loans, so it’s important to consult with our industry specialists who can provide more accurate and tailored information based on your individual circumstances.