Traditional bank loans sound like a lot of responsibility and paperwork, right? However, it is essential to acquire your dream property, and you cannot avoid it. Obtaining bank loans can be challenging, especially for individuals in new income streams, such as freelancing or self-employment.
If you’re self-employed, an investor, or someone who doesn’t earn a regular income, getting a loan from a traditional bank can be a challenging task. That’s why there are other loan options such as Bank Statement loans, stated income loans florida, and No-Doc loans.
These loans are specifically designed for individuals who don’t have regular paychecks or standard employment documentation. Here, we will walk you through what these loans are, how they work, and which one might be best for you if you live in Florida.
Bank Statement Loans are ideal if you own and operate your own business or work independently, such as a freelancer. Instead of asking for tax returns, lenders look at your bank statements from the last 12 to 24 months to see how much money you bring in.
What You’ll Need:
● Bank statement of the past 12 months
● You should be self-employed or have an income of $1,099 or above.
● Your credit score should be above 620
● Your bank account should show regular transactions.
Why It’s Good:
● Perfect for freelancers, gig workers, and business owners
● No need to show tax returns or explain deductions
● You might be able to borrow more money.
What to Watch Out For:
● Interest rates may be a bit higher than usual
● Your bank statements must be clear and steady.
● You might need to put down 10% to 20% of the property price.
Best For:
Self-employed individuals in Florida often earn a good income but do not disclose it on their tax documents.
Stated-Income Loans are based on your verbal statement rather than your bank records. Also called “lite doc” loans, this option allows you to state your income without providing complete documentation. Lenders trust your word, check your credit score, and might ask for basic information about your job or business.
What You’ll Need:
● You can verbally tell the lender how much money you make
● A credit score of around 660 or higher
● Proof that you are reliable and earn money.
● A decent-sized down payment
Why It’s Good:
● You can get approved faster
● You don’t need to collect different documents.
● Great for real estate investors and independent contractors
What to Watch Out For:
● Interest rates and fees are usually higher
● If your stated income doesn’t match your job type, the lender might say no.
● Not many regular banks offer these loans.
Best For:
Individuals in Florida with good credit and assets who seek a quick and straightforward loan process, such as real estate investors and freelancers.
No-Doc means “no documentation” in this type of loan; you don’t need to show proof of income, tax returns, or job history. These loans rely on your credit score, the value of the property, and the amount of money you can pay upfront.
What You’ll Need:
● A high credit score (700+)
● A big down payment that varies from 20 to 30 %
● A property appraisal (to check the property’s value)
● You might also need to show cash savings or investments.
Why It’s Good:
● Fast and private loan process
● Ideal for people with strong assets
● You don’t need to share much personal financial information.
What to Watch Out For:
● Harder to find lenders offering No-Doc loans
● Much higher interest rates
● You must pay a big chunk of the property price yourself.
Best For:
Ideal for individuals in Florida with excellent credit or foreign buyers seeking to maintain their privacy while purchasing investment properties.
Each of these alternative loan types serves a distinct purpose. Here's how to match them with your specific borrower profile:
| Borrower Type | Best Loan Option | Why |
|---|---|---|
| Self-Employed Professionals | Bank Statement Loan | Income is reflected better through bank deposits than tax returns |
| Real Estate Investors | Stated-Income Loan | Allows you to leverage good credit without complex paperwork |
| High-Net-Worth/Asset-Based | No-Doc Loan | Ideal for borrowers with strong financial reserves but no desire to disclose income |
| Foreign Nationals | No-Doc Loan or Stated-Income Loan | Less emphasis on U.S. income documentation |
| Recently Self-Employed | Bank Statement Loan | Avoid the 2-year self-employment history rule of conventional loans |
****
Before you choose loan options, it is important to consider following factors:
● Your Credit Score – A higher score gives you better deals
● How Much You Can Pay Upfront – These loans typically require larger down payments.
● Your Income Type – Even without tax documents, regular deposits help
● Why You’re Buying – Is it your home or an investment property?
● Find the Right Lender – Not all lenders are familiar with these loans, so choose one with experience.
If traditional bank loans don’t work for you, that doesn't mean you cannot buy your dream property, as Florida offers alternative loan options specifically designed for individuals like you.
Whether you’re self-employed, an investor, or someone with non-traditional income, you can still buy or invest in property using a Bank Statement Loan, Stated-Income Loan, or No-Doc Loan.
Private Capital Investors is the best choice to apply for loans. They specialize in helping investors who need flexible, fast, and easy-to-understand loan solutions. They know Florida’s real estate market well and can help you find the right loan without stress.