Bank Statement Loans:
No Tax Returns Required
If you're self-employed, a business owner, or a 1099 contractor, your tax returns likely show far less income than you actually earn — because you write off everything. Bank statement loans fix that. We qualify you on your actual deposits, not your taxable income.
How Bank Statement Loans Work
Traditional mortgage lenders use your tax returns to calculate qualifying income. For self-employed borrowers who maximize deductions, this often results in an income number too low to qualify — even if your business generates hundreds of thousands of dollars annually. Bank statement loans solve this by using your actual cash flow.
12-Month Option
Use the most recent 12 months of personal or business bank statements. Best for borrowers with consistent or growing income.
Business accounts: 50% of deposits counted as income. Personal accounts: up to 100%.
24-Month Average
Average 24 months of statements to smooth out fluctuations and potentially qualify for a larger loan amount.
Ideal if income varied significantly between years or if you want to include slower months.
P&L Statement Only
CPA-prepared profit and loss statement accepted as the sole income documentation — no bank statements needed.
Must be prepared by a licensed CPA. Covers the most recent 12 or 24 months.
Example: Qualifying Income Calculation
Bank Statement Loan Program Details
- Loan amounts$150,000 to $3.5M
- Interest ratesStarting at 6.25%
- Min credit score600 (better rates at 680+)
- Max LTVUp to 90% on primary residence
- Statement options12 or 24 months
- Accepted accountsBusiness or personal
- Closing timeline15–30 days
- Entity typesIndividual, LLC, S-Corp, C-Corp
- Property typesPrimary, second home, investment
- Licensed states48 states nationwide
Who Qualifies?
Bank statement loans are designed for borrowers whose actual cash flow is strong, but whose taxable income — after deductions — doesn't reflect it. If you've been denied by a bank despite having healthy deposits, this is your program.
- Self-employed business owners (2+ years)
- 1099 contractors and freelancers
- Real estate agents and brokers
- Restaurant owners and retailers
- Consultants and professionals
- Gig economy workers with consistent deposits
- Seasonal income earners
Bank Statement Loan FAQs
What is a bank statement loan?
A bank statement loan is a NonQM mortgage that uses 12–24 months of personal or business bank deposits as income verification instead of W-2s and tax returns. Ideal for self-employed borrowers and business owners who write off significant expenses.
How do lenders calculate income from bank statements?
For business bank statements, most programs use 50% of total 12-month deposits as qualifying income. For personal statements, up to 100% may be counted. A business with $600,000 in annual deposits could qualify on $300,000 in income ($25,000/month).
What credit score do I need?
Most programs start at a 600–640 minimum. Scores above 680 unlock better rates and higher LTV options. We work with a range of credit profiles and can often find a program even with past credit challenges.
Can I use a bank statement loan for investment properties?
Yes. Bank statement loans are available for primary residences, second homes, and investment properties. LTV limits and rates vary by property type.
What if my income varies month to month?
That's normal for self-employed borrowers. Lenders average your deposits over 12 or 24 months to arrive at a qualifying income. The 24-month option can help if you had a slower period recently.
Ready to see what you qualify for?
Start Your Application