Bank Statement Loans
Self-employed? Qualify on what you really earn.
Bank statement loans use 12 to 24 months of deposits to document your income instead of tax returns. Built for business owners, freelancers and commission earners whose write-offs understate what they make.
- No tax returns required
- 12 or 24 months of bank statements
- Purchase, refinance and cash-out
No credit pull and no obligation. Prefer to talk? Call or text (949) 910-3943.
At a glance
- Income documents
- Bank statements, not tax returns
- Down payment
- Varies by program and credit
- Self-employment history
- Usually two years
- Property types
- Primary, second home, investment
Why bank statement
When your tax return does not tell the whole story
Smart write-offs lower your taxes, but they also lower the income a traditional lender can count. This loan looks at your cash flow instead.
Income that reflects reality
Your qualifying income is based on actual deposits, not the net figure after deductions.
Personal or business accounts
Use personal statements, business statements, or a combination, depending on how you run your finances.
Higher loan amounts
Many programs go well above conforming loan limits, which helps in higher-priced markets.
Flexible property use
Available for primary residences, second homes and investment properties.
Other options too
Some lenders accept 1099s or a CPA-prepared profit and loss statement instead of bank statements.
A normal closing
Appraisal, title and closing work the same way as any other mortgage.
Compare
Bank statement vs. conventional
How the two compare for a self-employed borrower.
| Bank statement loan | Conventional loan | |
|---|---|---|
| Proof of income | 12 to 24 months of bank statements | Two years of tax returns |
| Effect of write-offs | Less impact on qualifying income | Reduce qualifying income |
| Down payment | Usually larger | Low down payment options |
| Interest rate | Usually higher | Usually lower |
| Best when | Your tax returns understate your income | Your tax returns show enough income |
If your tax returns support the loan you want, a conventional loan usually costs less. I will check both.
Want to see a payment at your price range?
The math
How your income is calculated
The lender reviews your statements and averages your eligible deposits. The method depends on the type of account.
| Statement type | How it works |
|---|---|
| Personal statements | Eligible deposits are averaged over 12 or 24 months |
| Business statements | Deposits are averaged, then reduced by an expense factor that reflects your type of business |
| 1099 or profit and loss | Some lenders use 1099s or a CPA-prepared profit and loss statement instead |
Transfers between your own accounts and one-time deposits are usually excluded.
Qualifying
Do you qualify?
Typical requirements
- Self-employed for about two years, in most cases
- 12 or 24 consecutive months of bank statements
- Credit score typically 620 or higher, with better terms at higher scores
- A larger down payment than most conventional loans
- Cash reserves, often several months of payments
What you will need
- 12 or 24 months of personal or business bank statements
- A business license or a letter from your CPA
- A short description of what your business does
- Statements showing your down payment and reserves
- A government-issued photo ID
The process
From first call to keys in hand
Tell me your goals
A short form or a ten-minute call. No credit pull to get started.
Income review and pre-approval
I review your statements, calculate your qualifying income and issue a pre-approval you can shop with.
Find the home
Make an offer with confidence. I will call the listing agent to back it up if that helps you win.
Appraisal to closing
Appraisal, underwriting and closing. I keep you updated at every step.
Common questions
Bank statement loan questions, answered
Are the rates higher than a conventional loan?
Usually, yes. These loans carry more risk for the lender, so the rate and down payment are typically higher. For many self-employed buyers it is the difference between qualifying and not.
Is this a stated income loan?
No. Your income is documented and verified through your bank statements. You simply use a different document than a tax return.
I recently became self-employed. Can I qualify?
Most lenders want two years of self-employment. Some accept one year if you have prior experience in the same field.
Can I use both business and personal accounts?
Often, yes. The lender will look at how money moves between them so deposits are not counted twice.
Can I refinance into a conventional loan later?
Yes. Once your tax returns support the income, refinancing into a conventional loan can lower your rate.
Ready to see what your deposits qualify for?
Tell me a little about your business and what you are looking for, and I will come back with your numbers and a clear next step.
Bank statement loans are non-QM loans. Rates, terms and requirements vary by lender. This is general information, not a loan offer, rate quote or commitment to lend. Program terms, fees and eligibility can change and depend on your credit, income, property and lender guidelines. Mack Davidson, NMLS #1006831, CA DRE #02086053, E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.