Self-employed financing · Bank statement loans
Bank statement loans: qualify on deposits, not tax returns.
A bank statement loan calculates your income from 12 or 24 months of personal or business bank deposits instead of tax returns. It's built for self-employed borrowers whose write-offs make their taxable income look lower than their real cash flow.
- No personal or business tax returns, typically
- 12- or 24-month personal or business statements
- Primary home, second home or investment (varies by program)
- Loan sizes that can go above conforming limits
Ready now? Apply now · Questions? Book a call
How the program works
What is a bank statement loan?
How income is calculated
Lenders average your eligible deposits over 12 or 24 months. Business-account deposits usually have an expense factor applied, or a third-party-prepared P&L may be used.
Personal vs. business statements
Personal statements may count deposits more fully; business statements reflect gross receipts minus an expense factor. Which works better depends on how you pay yourself.
Who it's built for
Business owners, 1099 contractors, freelancers and commission earners with at least a typical 2-year self-employment history (varies by program).
Side by side
Bank statement loan vs. conventional financing
How the two typically compare. Guidelines vary by lender and program.
| Feature | Conventional loan | Bank statement loan |
|---|---|---|
| Income documentation | 2 years of personal (and often business) tax returns, plus a P&L | 12 or 24 months of bank statements; tax returns typically not required |
| How income is figured | Net taxable income after write-offs and depreciation | Average deposits (business deposits less an expense factor) |
| Debt-to-income (DTI) | Calculated against agency maximums | Calculated using deposit-based income; maximums vary by lender |
| Self-employment history | Typically 2 years, shown on tax returns | Often 2 years; some programs consider shorter histories |
| Recent tax year issues | Unfiled or low-income years can block approval | Typically not a factor, since returns aren't used |
| Loan size | Conforming limits unless jumbo | Many programs offer larger loan sizes |
| Pricing & down payment | Generally lower pricing | Typically priced higher; down payment varies by credit and loan size |
Advantages
Where a bank statement loan can beat conventional
Write-offs don't shrink your income
Qualifying income comes from deposits, so typical business deductions don't reduce it.
No tax returns
Personal and business returns are typically not required.
Choose your best accounts
Use personal or business statements, whichever better reflects your income.
Flexible occupancy
Many programs allow primary residences, second homes and investment properties.
Larger loan sizes
Many programs go above conforming loan limits.
Works for variable income
Averaging 12–24 months smooths seasonal or lumpy deposits.
Share your scenario in about 2 minutes
No credit pull. Real options from 500+ lenders.
Borrower profiles
Who uses a bank statement loan
The business owner
Profitable company, but tax returns reflect aggressive deductions and depreciation.
The 1099 contractor
Consultants, tradespeople and tech contractors with strong but irregular deposits.
The commission earner
Real estate agents and sales professionals paid through multiple sources.
The recent tax-year dip
A one-off low year on the returns doesn't reflect current earnings.
The move-up buyer
Self-employed family trading up to a larger home.
The self-employed investor
Buying a second home or rental using business cash flow to qualify.
Process
From scenario to closing
Check your scenario
Tell us how you're paid and what you're buying.
Statement analysis
We estimate qualifying income from 12 or 24 months of deposits and compare 500+ lenders.
Apply & upload
Apply online and upload statements through a secure portal.
Close
We coordinate with your agent and escrow through closing.
Typical guidelines
What lenders generally look for
General ranges for illustration only. Guidelines, pricing and availability vary by lender and program and change over time.
| Statements | 12 or 24 months of personal or business bank statements |
|---|---|
| Business statements | An expense factor or third-party-prepared P&L is often applied |
| Self-employment history | Often around 2 years; some programs consider shorter histories |
| Down payment | Commonly starting around 10%–20% for a primary home, varies by credit and loan size |
| Credit score | Many programs start in the 600s |
| Reserves | Several months of payments in reserves is typical |
Not a commitment to lend. All financing is subject to borrower and property eligibility, lender approval, program availability and applicable licensing.
FAQ
Bank statement loan FAQs
What is a bank statement loan?
A bank statement loan is a Non-QM mortgage for self-employed borrowers that uses 12 or 24 months of bank deposits to calculate qualifying income instead of tax returns.
How does it compare to a conventional loan?
Conventional loans typically use net income from your tax returns, after write-offs. Bank statement loans typically use average deposits instead, which often results in higher qualifying income for self-employed borrowers. They are typically priced higher than conventional loans.
Should I use personal or business bank statements?
It depends on how your income flows. Personal statements may count deposits more fully, while business statements usually have an expense factor applied.
How long do I need to be self-employed?
Many programs look for around two years, though some consider shorter histories. Requirements vary by lender and program.
Do I need a CPA letter?
Some lenders ask for a CPA or tax preparer letter to verify the business or ownership percentage, or accept a third-party-prepared P&L. Requirements vary by lender.
Can I buy a primary residence with a bank statement loan?
Yes. Bank statement loans are commonly used for primary homes, and many programs also allow second homes and investment properties.
“Rei made an otherwise tedious process easy and streamlined. He was always responsive; clear in communication; and quick with follow through. Couldn't recommend him enough.”
Explore your financing options
Takes about 2 minutes. No credit pull.