To qualify for a bank statement loan in Michigan, you need to provide 12-24 months of personal or business bank statements to demonstrate income. Most lenders require a credit score of 660 or higher and a down payment of 10-20%. Self-employed borrowers in Michigan must typically show at least two years of self-employment history and consistent deposit patterns.

Lenders in Michigan calculate your income by averaging the qualifying deposits in your bank statements over the 12 or 24-month period. For personal accounts, total deposits are typically used minus any identifiable transfers. For business accounts, an expense factor of 30-50% is applied to account for business costs. The resulting net figure becomes your qualifying monthly income.

Yes, most bank statement lenders in Michigan accept business bank statements as the sole income documentation. When using business statements, lenders apply an expense factor, typically 50%, to account for business operating costs. Some lenders allow you to document a lower actual expense ratio with a CPA letter, which can increase your qualifying income.

In Michigan, bank statement lenders typically require a business license or DBA registration, a CPA letter confirming self-employment for at least two years, and 12-24 months of bank statements. You do not need to provide tax returns, W-2s, or profit and loss statements, which is the primary advantage for self-employed borrowers whose tax returns understate their actual income.

Bank statement loan rates in Michigan are typically 1-2% higher than conventional rates due to the alternative documentation and higher perceived risk. Rates generally range from 7-9% depending on your credit score, down payment, and DSCR if applicable. Strong borrowers with 740+ credit scores and 20% down can often negotiate rates at the lower end of this range through NMHL.

Yes, bank statement loans in Michigan are available for primary residences, second homes, and investment properties. Many self-employed borrowers in Michigan use bank statement loans for their primary home purchase when their tax returns do not reflect sufficient income for conventional qualification. The property types and occupancy requirements are similar to conventional loans.