Self-Employed Solution
Bank Statement Loans
Qualify for a mortgage using your bank deposits instead of tax returns. Perfect for self-employed borrowers, business owners, and entrepreneurs with strong cash flow.
Quick Program Overview
Documentation
12 or 24 months bank statements
Loan Amounts
Up to $3M+ (Jumbo available)
LTV
Up to 90% (10% down payment)
Closing Time
21-30 days typical
Who Qualifies for Bank Statement Loans?
Bank Statement loans are designed for borrowers with non-traditional income documentation.
Business Owners
LLC owners, S-Corp shareholders, and sole proprietors
- Complex tax structures
- Significant business write-offs
- Multiple income streams
Freelancers & Contractors
Independent professionals with variable income
- Gig economy workers
- Consultants and advisors
- Creative professionals
High Write-Off Earners
Strong income with low taxable income on returns
- Depreciation deductions
- Business expense write-offs
- Real estate investors
Bank Statement Loan Requirements
Here's what you'll typically need to qualify for a Bank Statement loan.
Minimum Requirements
- Credit Score: 620+ (680+ for best rates)
- Down Payment: 10-20% minimum
- Self-Employment: 2+ years in business
- Reserves: 3-6 months PITI
Required Documents
- 12 or 24 months bank statements (all pages)
- Business license or CPA letter
- 2 months asset statements
- Government-issued ID
Bank Statement Loan FAQs
Get answers to common questions about Bank Statement mortgages
A Bank Statement loan is a Non-QM mortgage that uses your bank deposits to verify income instead of tax returns or W-2s. This is ideal for self-employed borrowers who have significant tax write-offs that reduce their taxable income on paper, even though their actual cash flow is strong.
Most lenders require either 12 or 24 months of consecutive bank statements. The 24-month option often provides better rates and terms. You can use personal bank statements, business bank statements, or a combination of both depending on the lender's guidelines.
Minimum credit score requirements typically range from 620 to 680, depending on the lender and loan amount. Higher credit scores (700+) will qualify for better interest rates and more favorable terms. Some lenders offer programs for scores as low as 580 with larger down payments.
Lenders calculate income by averaging your deposits over the statement period. For personal accounts, they typically use 100% of deposits. For business accounts, they apply an 'expense factor' (usually 50-90% of deposits count as income) to account for business expenses.
Bank Statement loans are available up to $3 million or more with some lenders. Jumbo Bank Statement loans (above conforming limits) are common for self-employed borrowers purchasing high-value properties. Loan amounts depend on your income qualification and down payment.
Yes, Bank Statement loans can be used for primary residences, second homes, and investment properties. However, requirements may vary—investment properties typically require larger down payments (20-25%) and may have slightly higher rates.
Bank Statement loans typically close in 21-30 days, similar to conventional mortgages. Having all your bank statements ready and organized can help speed up the process. Some lenders offer expedited closings for well-qualified borrowers.
Yes, Bank Statement loans typically have rates 0.5% to 1.5% higher than conventional mortgages due to the alternative documentation. However, rates vary significantly by lender, credit score, and down payment. Shopping multiple lenders can help you find competitive rates.