Most people are opting for freelance jobs and self-employment, especially since Covid-19 hit the world. Freelancing and other independent jobs have been on the rise. A recent study shows that the US is the biggest gig economy market, with Florida and California being the leading states.
These statistics show the need for bank statement loans Florida because freelancers can’t provide payslips for their earnings. This blog explains more about bank statement loans Florida and how you can qualify for one in Florida.
Keep reading to learn more about these loans and how you can benefit from them. However, if you are struggling with bad credit, we have incredible ways to improve your credit score.
What Are Bank Statement Loans Florida?
Bank statement loans are the loans you get by providing your bank statement to your lender as proof of income. As you may know, most lenders require a physical employer and a stable income flow before approving your loan.
Whether you are self-employed or a freelancer worker, you can get bank statement loans to help you make huge investments. For instance, you can get a car loan, a mortgage, or a personal loan with your bank statement.
Bank statement loans don’t have any protection for either lenders or borrowers, thus they may be more riskier. As a result, most lenders do not offer these loans.
How Do Bank Statement Loans Florida Work?
As a freelance worker, you can get bank statement loans Florida after providing your 2-3 years bank statement. This is beyond the normal loan application where you provide only a three-month bank statement if you have a stable job and employer.
The bank statement should contain all the flow of your income over the years so that the bank proves your income. Therefore, ensure the statement you provide has the highest number of income transactions.
Once you provide a valid bank statement, the lender will now consider your credit score to know what they should lend you. If you have a bad credit score, you may have to rebuild it before applying for bank statement loans Florida.
However, you can still get bad credit bank statement loans, but they come with high-interest rates. Therefore, if you want better interest rates, work on your credit score first. Consider taking bad credit loans to rebuild your credit first.
For Business Owners
There is a slight difference in how bank statement loans Florida works for freelancers and business owners. Business owners should provide bank statements accompanied by a profit and loss statement, which freelancers don’t provide.
The business sometimes acts as collateral against the loan that the business owner applies for. Therefore, if they don’t repay the loan, the lender will have the right to auction the business.
Who Gets Bank Statement Loans Florida?
If you are a freelancer, a business owner, a real estate investor, or anyone else working in the gig economy, you can get bank statement loans Florida. However, you should have a good credit score of above 700 to get these loans with lower interest rates.
In addition, the amount of loan you get depends on the number of income transactions according to your bank statement. Therefore, if you want a mortgage loan, you should have a huge income flowing into your bank account.
Where to Get Bank Statement Loans Florida
You might be wondering who would want to give you a bank statement loan. Well, it might be tough to get a lender who will help you with such a loan. However, with a loan broker, it’s easy to get bank statement loans Florida.
A loan broker does the work on your behalf, and the good thing is most of these brokers don’t charge you. They have a good network of lenders where they can easily search for a suitable lender for you.
Therefore, you don’t have to waste your time searching for a lender for bank statement loans Florida once you can use a loan broker and get a response in a few minutes.
Are Bank Statement Loans Florida a Good Choice?
Well, this depends on your urge to get a loan. We all know that some purchases like that of a home or a car usually need a huge amount of money. Therefore, it might be the best option to get bank statement loans Florida if you want to grow.
However, it’s always advisable to gauge your income and apply for a loan you can comfortably repay. Freelancing and businesses do not always have a stable income flow. Some months have huge profits while others have less income or losses.
You should also be prepared for the huge down payment that the lender requests you to pay before approving your loan.
Now, as a freelancer, business owner, or worker in the gig economy, you should no longer worry about getting external funding to buy a home, car, or other personal stuff. However, you should work on your credit score to improve your chances of approval and get lower rates.
What are your views on bank statement loans Florida? Let’s discuss this in the comment section. Don’t forget to subscribe to get amazing tips to grow financially.
Frequently Asked Questions
- Can I get bank statement loans?
Yes. You can get bank statement loans, but you should have a high credit score to qualify for one.
- How do bank statement loans work?
These loans allow self-employed individuals to get loans without providing tax returns and payslips. Most beneficiaries of bank statement loans are freelancers, business owners, gig workers, and contractors.