Bank Statement Loans

Qualify for a home loan using your real income, not just tax returns. Bank Statement Loans are designed for self-employed borrowers by combining flexible income documentation.

Start Your Pre-Qualification

When may you qualify?

If you are self-employed or a business owner

Earn income as a 1099 contractor or freelancer

Write off significant business expenses on tax returns

Many borrowers earn high incomes but appear “unqualified” on paper. Bank statement loan programs are built to bridge that gap and provide access to flexible qualification options.

Common Challenges Bank Statement Borrowers Face

We work with bank statement loan borrowers every day. We see the same concerns repeatedly, and we solve them with clarity and structure.

"My tax returns show very low income."

That’s common for self-employed borrowers. Bank statement loans focus on monthly deposits rather than taxable income after deductions.

"I don’t know which deposits count as income."

We help separate qualifying income from transfers, reimbursements, and one-time deposits, so calculations are accurate.

"I’ve heard these loans are expensive or risky."

Not all bank statement mortgage programs are the same. We compare lenders, rates, and terms to find the best fit.

"I’m worried I won’t qualify."

We review credit, assets, and income upfront, so expectations are clear before moving forward.

Bank Statement Loan Program Options

As a bank statement borrower, you may qualify for more than one program. The right option depends on income consistency, credit profile, assets, and property type.

Personal Bank Statement Loans

1Uses 12 or 24 months of personal bank statements
2No tax returns required
3 Ideal for freelancers and sole proprietors

Business Bank Statement Loans

1 Uses business account statements
2 Applies an expense factor to estimate income
3Designed for LLCs, S-Corps, and business owners

How the Bank Statement Loan Process Works

1

Pre-Qualification Based on Income Structure

The starting point is understanding how your income flows. We look at your employment type, length of self-employment, credit profile, and available funds to determine whether a bank statement loan is appropriate.

This step helps establish:

A realistic qualification range
Which statement type applies (personal or business)
Whether 12 or 24 months of history is needed
Baseline expectations before moving forward

2

Bank Statement Review & Loan Matching

Once pre-qualified, bank statements are reviewed to calculate the average monthly income. This step focuses on accuracy and consistency, not guesswork.

During this stage, we evaluate:

Deposit patterns and stability
Expense treatment for business income
Program requirements across lenders
Payment structure and long-term cost

3

Home Search with Defined Limits

With income verified, you can move forward knowing your numbers are grounded in documentation, not assumptions. This allows you to shop strategically instead of speculatively.

This helps because:

Your approval reflects real income data
Your price range is defensible
You can move quickly when needed
Payment expectations are already mapped

4

Final Review & Closing

After a purchase contract is in place, the loan enters final review. At this point, documentation is confirmed, the property is evaluated, and loan terms are finalized.

You’ll be supported through:

Final document requests
Appraisal coordination
Review of closing figures
A smooth, predictable closing

FAQs

1 What is a bank statement loan?

A bank statement loan is a type of non-qualified mortgage (non-QM) that allows borrowers to qualify using bank statements instead of traditional tax returns or W-2s. This makes bank statement loans especially useful for self-employed borrowers whose tax returns show lower income due to write-offs. These loans can be used for primary homes, second homes, or investment properties.

2 What are typical bank statement loan requirements?

Bank statement loan requirements focus on cash flow, credit profile, and equity, rather than tax documents. Most lenders require 12–24 months of bank statements, a credit score typically 620–660+, a down payment of 10%–20% (higher investment properties), and an acceptable debt-to-income or cash flow ratio.

3 Who are bank statement loans best for?

Bank statement loans are best for self-employed borrowers, freelancers, business owners, and gig workers. These loans are ideal if your tax returns don’t reflect your true income due to deductions, depreciation, or business expenses. They’re also popular with real estate investors and consultants who earn variable income.

4 Can bank statement loans be used for refinancing?

Yes, bank statement loans can be used for both rate-and-term refinancing and cash-out refinancing. Homeowners often refinance a bank statement of loan to lower their payment, consolidate debt, or access home equity without providing tax returns. The lender reviews recent bank statements to confirm ongoing income and ability to repay. These refinance options are available for primary residences, second homes, and investment properties.

5 How do lenders calculate income from bank statements?

Lenders calculate income by averaging monthly deposits shown on your bank statements over a set period. Typically, lenders review 12 or 24 months of statements and apply an expense factor, often 50% for business accounts, to estimate net income. Personal bank statements may be counted at 100% if deposits are consistent and verifiable. Large one-time deposits are usually excluded to ensure accuracy.