Bank Statement Loans
Qualify using 12–24 months of deposits — no tax returns, no W-2s.
Program Overview
Bank Statement loans are a non-QM mortgage solution designed for self-employed borrowers, business owners, and entrepreneurs whose tax returns don't reflect their true cash flow. Because self-employed individuals often maximize deductions, their taxable income on paper may not represent what they actually earn and deposit each month.
With a Bank Statement loan, the lender analyzes 12 or 24 months of personal or business bank statements to calculate qualifying income. Business deposits are typically averaged and reduced by an expense ratio (commonly 50% for business accounts) to arrive at a qualifying monthly income figure.
This program allows creditworthy, financially stable borrowers to purchase or refinance homes without being penalized for having a tax-efficient business.
At a Glance
Who May Qualify
- Self-employed borrowers — 2+ years of self-employment history
- Business owners, sole proprietors, freelancers, and independent contractors
- 1099 earners with fluctuating income (also see 1099 Loan program)
- Minimum credit score typically 620–680 (lender-dependent)
- 12 or 24 months of personal or business bank statements
- Down payment typically 10–20% minimum
- Primary residences, second homes, and investment properties may be available
Advantages
- No tax returns or W-2s required
- Reflects true cash flow rather than taxable income
- Primary, second home, and investment options
- Competitive rates compared to hard money alternatives
- 2 years self-employment history is typically sufficient
Considerations
- Higher rates than conventional or FHA due to non-QM classification
- Business bank accounts subject to expense ratio reduction
- Higher down payment than traditional loans
- 2-year self-employment history required
- Guidelines vary significantly by lender
Bank Statement loans are non-QM products. Income calculation methods and program guidelines vary by lender. This page is for educational purposes only. Contact a licensed loan officer for current availability and eligibility.
Ready to See If You Qualify?
Get a free personalized review from Alberto Cruz — a licensed loan officer who works with all of these programs daily.