Bank Statement Loans in New York 2026
Self-employed in New York? Qualify for a mortgage using bank statements instead of tax returns. Complete guide to bank statement loans in New York City ...
NonQM Lending Team
Expert Contributor
Bank Statement Loans in New York: Self-Employed Borrower Guide 2026
If you are self-employed in New York and struggling to qualify for a traditional mortgage, bank statement loans offer a proven alternative. Instead of tax returns that understate your true income due to business deductions, bank statement loans use 12 or 24 months of deposits to calculate your qualifying income.
New York has one of the largest self-employed workforces in the country, with thriving industries in finance, media, technology, healthcare. Many of these professionals earn strong incomes but show lower taxable income on their returns. Bank statement loans bridge that gap.
How Bank Statement Loans Work in New York
Bank statement loans allow self-employed borrowers to qualify using actual bank deposits rather than adjusted gross income from tax returns. Here is how the process works:
- Submit 12 or 24 months of bank statements (personal or business accounts)
- Lender calculates average monthly deposits after removing non-recurring items
- An expense factor is applied (typically 10-50% depending on business type)
- The resulting figure becomes your qualifying income
Income Calculation Example for New York Borrowers
| Factor | 12-Month Program | 24-Month Program |
|---|---|---|
| Total Deposits | $300,000 | $580,000 |
| Non-Recurring Removed | -$18,000 | -$32,000 |
| Net Deposits | $282,000 | $548,000 |
| Expense Factor (25%) | -$70,500 | -$137,000 |
| Qualifying Annual Income | $211,500 | $411,000 |
| Monthly Income | $17,625 | $17,125 |
Who Benefits Most in New York?
Bank statement loans are particularly popular among New York professionals in these industries:
- Finance professionals — High revenue with significant business deductions
- Media workers — Variable income that does not fit traditional underwriting
- Technology professionals — Strong cash flow but complex tax situations
- Healthcare business owners — Seasonal income patterns
- Gig economy workers and freelancers — Multiple income streams across platforms
Bank Statement Loan Requirements in New York
Minimum Qualifications
- Credit Score: 620-660 minimum (best rates at 720+)
- Self-Employment: Minimum 2 years in the same business
- Down Payment: 10-25% depending on credit score and loan amount
- Bank Statements: 12 or 24 months of personal or business statements
- Documentation: Business license, CPA letter, or tax preparer letter
- Loan Amounts: $100,000 to $3,000,000+
Rate Comparison
| Program | Typical Rate | Max LTV | Best For |
|---|---|---|---|
| 12-Month Personal | 7.50-8.50% | 85% | Consistent deposits |
| 12-Month Business | 7.75-8.75% | 80% | Business owners |
| 24-Month Personal | 7.25-8.25% | 90% | Lower rates |
| 24-Month Business | 7.50-8.50% | 85% | Larger loans |
Case Study: Manhattan Bank Statement Loan
- Borrower Profile:
- Business: financial consulting practice
- Location: Manhattan, NY
- Loan Amount: $890,000
- Bank Deposits: $485,000 over 12 months
- Qualifying Income: $28,500/month
- Program: 12-month personal bank statement
- Result: Approved and closed in 28 days
This borrower's tax returns showed only $68,000 in adjusted gross income due to legitimate business deductions. The bank statement program recognized their true earning power of $28,500/month, qualifying them for the home they needed.
Tips for Maximizing Your Bank Statement Loan Approval in New York
- Keep business and personal accounts separate — Cleaner statements mean faster processing
- Avoid large cash deposits — They require sourcing documentation and slow the process
- Maintain consistent deposits — Lenders look for stable income patterns
- Reduce outstanding debts before applying — Lower DTI improves your rate
- Get a CPA letter ready — Confirms your self-employment status and business type
- Choose the right statement period — 24-month programs often offer better rates
New York Bank Statement Loan vs. Traditional Mortgage
| Feature | Bank Statement Loan | Traditional Mortgage |
|---|---|---|
| Income Verification | Bank deposits | Tax returns & W-2s |
| Self-Employed Friendly | Yes | Often difficult |
| Approval Speed | 21-30 days | 30-45 days |
| Down Payment | 10-25% | 3-20% |
| Interest Rates | 7.25-9.50% | 6.50-7.50% |
| Max Loan Amount | $3M+ | Conforming limits |
| DTI Flexibility | More flexible | Strict 43-50% |
Getting Started
Ready to explore bank statement loans in New York? Our network of 95+ licensed Non-QM lenders can help you find the right program.
[Get Pre-Qualified](/get-started) | [Compare New York Lenders](/locations/new-york) | [Bank Statement Loan Details](/programs/bank-statement)
Frequently Asked Questions
Can I use business bank statements for a mortgage in New York? Yes, most New York bank statement lenders accept both personal and business bank statements. Business statement programs typically apply a higher expense factor (25-50%) compared to personal statements (10-25%). Some lenders allow you to combine both personal and business statements for a blended calculation.
What credit score do I need for a bank statement loan in New York? The minimum credit score for bank statement loans in New York is typically 620-660. However, borrowers with scores of 720 or higher qualify for the best rates and highest LTV options (up to 90%). Each 20-point increase in credit score can reduce your rate by 0.125-0.25%.
How much can I borrow with a bank statement loan in New York? Bank statement loans in New York range from $100,000 to $3,000,000 or more. Your maximum loan amount depends on your qualifying income (calculated from bank deposits), credit score, down payment, and the property value. Jumbo bank statement loans above $1 million are available with 25-30% down.
Do bank statement loans require a larger down payment in New York? Bank statement loans in New York typically require 10-25% down, compared to 3-20% for conventional loans. The exact requirement depends on your credit score, loan amount, and property type. Borrowers with 740+ credit scores may qualify for as little as 10% down on primary residences.
How long does it take to close a bank statement loan in New York? Most bank statement loans in New York close in 21-30 days from application. The timeline is comparable to conventional loans. The main factors affecting closing speed are the appraisal turnaround time and how quickly you provide the required documentation (bank statements, CPA letter, business license).
Can I refinance with a bank statement loan in New York? Yes, bank statement refinancing is available in New York for both rate-and-term and cash-out refinances. Cash-out refinances typically allow up to 75-80% LTV. This is a popular option for self-employed homeowners who want to access equity without providing tax returns.
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Loan Program Details
- [Bank Statement Loan Program](/programs/bank-statement) — Full program details, requirements, and rates
- [Self-Employed Mortgage Options](/blog/self-employed-mortgage-options) — 7 ways to get approved
- [Get Pre-Approved](/get-started) — Start your application today