Does a bank statement loan cost more than a regular mortgage?

Why does it cost more?

Bank statement loans are Non-QM loans. They can't be sold to Fannie Mae or Freddie Mac, so lenders take on more risk and price for it. The cost shows up in:

• The rate: higher than a comparable conventional loan
• The down payment: often 10% to 20% or more, depending on credit and loan size
• Reserves: some programs want several months of payments in savings

What affects my price?

• Credit score: higher scores get meaningfully better pricing
• Down payment: more down usually means a lower rate
• 12 vs. 24 months of statements: some programs price them differently
• Loan size and property type

When is it worth it?

• Your tax returns show much less than you actually earn because of write-offs.
• The right home is available now, and waiting a year or two for your returns to catch up would cost you more.
• You have a plan to refinance into a conventional loan once your returns support it.

It's not worth it if a conventional loan would work. I'll always check that first.

Example scenario (illustrative)

A salon owner in Sacramento deposits about $15,000 a month, but her tax returns show about $45,000 a year after write-offs. A conventional loan won't get her the home she needs; a 24-month bank statement loan with 15% down does. We plan to revisit a conventional refinance after she files two more years of returns.

Our take

A bank statement loan is a tool, not a trap, as long as you know the price. I'll show you the conventional option and the bank statement option side by side, and the plan to get you into the cheaper loan later.