What is a bank statement loan program?

A bank statement loan program allows borrowers to qualify for a mortgage using bank statements instead of traditional income documentation. It is designed mainly for self-employed borrowers.

How does the bank statement program work?

Lenders review 12 to 24 months of bank statements to analyze income and cash flow rather than relying on W-2s or tax returns. This helps in assessing the borrower's ability to repay the loan.

What is a bank statement loan for a house?

A bank statement loan for a house is a mortgage program where the lender uses bank statements to verify the applicant's income instead of traditional methods, facilitating loans for self-employed individuals.

How hard is it to get a bank statement loan?

Getting a bank statement loan can be harder than a conventional loan due to stricter requirements, including a higher credit score and larger down payment. It varies based on the lender's terms.

How much down do you need for a bank statement loan?

Down payments for bank statement loans can vary but are often higher than traditional loans, ranging from 10% to 20% or more, depending on the lender's policies and the borrower's financial situation.

SBA Loans: For Commercial Lending

Learn More About SBA 7(a) & SBA 504 Loans.

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SBA commercial real estate loans Since 1999

What Are SBA Commercial Real Estate Loans?

SBA loans are issued by approved lenders and partially guaranteed by the U.S. Small Business Administration. This reduces lender risk, which can make financing more accessible for qualifying businesses.

These loans are commonly used for:

- - Purchasing owner-occupied commercial buildings
  - Refinancing existing commercial real estate debt
  - Construction, renovations, or tenant improvements

SBA loans are intended for operating businesses, not passive real estate investors.

SBA 7(a) Real Estate Loans:

The 7(a) Loan Program is the Small Business Administration’s primary program for providing financial assistance to small businesses. Borrowers can receive up to $5 million through the program, with repayment terms of up to 25 years. SBA 7(a) loans are attractive to certain businesses because they offer high leverage and fixed-rate terms.

SBA 7(a) Property Loan Highlights

Eligible Properties: Office, Warehouse/Industrial, Mixed Use, Retail, Medical/Healthcare, Self Storage, Hotel/Motel

Loan Amount Range: Maximum of $5,000,000

Loan Term: Up to 25 years for commercial properties

Maximum LTV: 90% For Loans Over $150,000

Minimum DSCR: 1.25x

Recourse: Typically Full-Recourse

Collateral: SBA requires that the lender collateralize the loan to the maximum extent possible up to the loan amount on loans over $350,000.

SBA 504 Loans

SBA 504 loans are designed specifically for fixed assets, including commercial real estate. These loans often provide long-term, fixed-rate financing for qualifying properties.

504 Loan Highlights

Eligible Properties: Warehouse/Industrial, Mixed Use, Retail, Medical/Healthcare, Self Storage, Hotel/Motel, Restaurants, Daycare Facilities, and Assisted Living Facilities.

Loan amount range: Up to $5 million or $5.5 for manufactures and energy-efficient projects

Loan Term: 10 or 20 years

Amortization: 10 to 30 years

Maximum LTV: Up to 90% LTV. Hospitality is limited to 85%

Minimum DSCR: 1.20x

Recourse: Full recourse.

Collateral: The project assets that are being financed are used as collateral. The principal owners are required to produce personal guarantees.

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SBA FAQs

What types of businesses qualify for SBA loans?

SBA loans are designed for small businesses that meet SBA size standards and operate for profit. Eligible borrowers often include professional services, medical practices, retail businesses, and service-based companies purchasing or refinancing owner-occupied real estate.