Bank Statement Loan

A Bank Statement Loan is designed for self-employed people who don’t get paid with regular paychecks or W-2s.


Instead of using tax returns, they can show their income using 12 or 24 months of personal or business bank statements.

This type of loan is great for small business owners, freelancers, and independent contractors—even if they don’t own 100% of the business.

Our Bank Statement program helps credit-worthy self-employed borrowers who may not qualify for traditional home loans get the financing they need.

❌ What’s Not Required for a Bank Statement Loan:

  1. Tax Returns
    You don’t need to provide 1 or 2 years of federal tax returns (1040s), which are typically required for income verification on traditional loans.

  2. W-2 Forms
    These loans do not require W-2s since borrowers aren’t salaried employees.

  3. Paystubs
    You won’t need to submit paystubs from an employer, as income is verified via deposits.

  4. Traditional Employment Verification
    No need for a written Verification of Employment (VOE) from a company HR department.

  5. Debt-to-Income (DTI) Ratio Calculation (in some cases)
    Many bank statement lenders use bank deposits as a proxy for income and may not calculate a formal DTI.

  6. Personal Bank Statements (if using business bank statements only)
    If you choose to use business statements, some lenders allow you to avoid submitting personal ones (and vice versa, depending on the structure).

  7. Full Documentation of All Business Expenses
    While expenses may be factored in as a percentage (usually 50%), borrowers don’t have to show itemized profit-and-loss statements unless specifically requested.

✅ Instead, What Is Needed:

  • 12 or 24 months of consecutive personal or business bank statements

  • Proof of self-employment (like a business license, CPA letter, or incorporation documents)

  • A good to strong credit score (often 620–700+)

  • A reasonable down payment (typically 10%–20%)

General Overview

What It Is:
A Bank Statement Mortgage is a non-QM loan designed for self-employed individuals who want to qualify for a mortgage without using traditional income documentation like tax returns, W-2s, or paystubs.

✅ Who It’s For:

  • Self-employed borrowers

  • Small business owners

  • Freelancers, gig workers, and independent contractors

  • Commission-based professionals

  • 1099 earners and entrepreneurs

📄 Key Features:

  • Income Verified by Bank Statements:
    12 or 24 months of business or personal bank statements are used to calculate average monthly income.

  • No Tax Returns or W-2s Needed

  • Minimum Loan Amount:
    Typically $100,000 or more

  • Credit Score Requirements:
    Generally 620–700+, depending on the lender

  • Down Payment:
    Usually 10%–20%, based on credit profile and loan size

  • Competitive Rates:
    Slightly higher than conventional loans but often very competitive considering the flexibility

🔍 Additional Requirements:

  • Proof of self-employment (e.g., business license or CPA letter)

  • Consistent deposits that support the stated income

  • Clean credit history helps secure better terms

✅ Benefits:

  • Ideal for those with strong cash flow but limited tax return income

  • Helps credit-worthy borrowers who are underserved by traditional lenders

  • Flexible underwriting based on real income, not tax write-offs

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