Eligible Property Types
Single-family residences — The most straightforward property type. Detached homes, townhomes, and PUDs (planned unit developments) typically qualify without issue. Condominiums — Warrantable condos qualify with most lenders. Non-warrantable condos (those that don’t meet Fannie Mae guidelines) are also eligible with many bank statement lenders—a key advantage over conventional financing. 2-4 unit properties — Duplexes, triplexes, and fourplexes qualify, whether owner-occupied or investment. Rental income from other units may help with qualification. Rural properties — Homes on acreage typically qualify, though very large parcels (40+ acres) may face restrictions or require additional review.Property Types with Restrictions
| Property Type | Typical Availability |
|---|---|
| Single-family | Widely available |
| Condo (warrantable) | Widely available |
| Condo (non-warrantable) | Many lenders |
| 2-4 units | Many lenders |
| Rural / acreage | Many lenders, size limits may apply |
| Mixed-use | Limited lenders |
| Manufactured homes | Limited lenders |
| Condotels | Limited lenders |
| Co-ops | Rare |
Non-Warrantable Condos
Conventional lenders avoid non-warrantable condos, but many bank statement lenders accept them. A condo may be non-warrantable due to:- Single entity owning too many units
- High investor concentration
- Pending litigation against the HOA
- Insufficient reserves
- Commercial space exceeding limits
Mixed-Use Properties
Properties with both residential and commercial space (like a storefront with apartment above) qualify with some bank statement lenders. Typical requirements:- Residential space must be primary use
- Commercial portion limited to 25-40% of total square footage
- Borrower may need to occupy residential portion
Ineligible Properties
Most bank statement lenders won’t finance:- Vacant land
- Commercial-only properties
- Properties in disrepair
- Log homes or dome homes (with some exceptions)
- Houseboats or floating homes