Self-Employed Loan
Bank Statement
For self-employed borrowers whose tax returns do not show what the business really earns. Qualify using 12 to 24 months of personal or business bank statements, an alternative documentation path that still verifies you can repay.
- Income shown by12 to 24 months of bank statements
- ForSelf-employed borrowers and business owners
- PropertyPrimary, second home or investment
- Loan typeNon-QM, alternative documentation
How It Works
Your deposits tell the story.
Write-offs can make taxable income look smaller than what a business actually brings in. A bank statement loan sets those returns aside. The lender reviews your deposits over 12 or 24 months and calculates a monthly income from them.
- 01
We check whether your tax returns work first
If your returns qualify you for a conventional loan, that is usually the lower-cost path. If not, we move to bank statements.
- 02
The lender calculates income from deposits
Personal statements generally count eligible deposits. Business statements usually apply an expense factor, or use a P&L, to arrive at qualifying income.
- 03
We price it across our lenders
Bank statement guidelines and pricing vary widely between lenders. We compare them and match you with the ones that fit how your business runs.
Program Highlights
Why business owners choose bank statement loans.
- Qualify with 12 to 24 months of personal or business bank statements
- No personal or business tax returns needed to qualify on most programs
- Built for business owners, freelancers and other self-employed borrowers
- Available for primary homes, second homes and investment properties
- Purchase, rate-and-term refinance and cash-out options
- Lenders still verify your ability to repay
Common Questions
What borrowers ask about bank statement loans.
A bank statement loan is a mortgage for self-employed borrowers that uses bank statements, instead of tax returns, to document income. It is a Non-QM loan, which means it falls outside the standard Qualified Mortgage documentation rules, but the lender is still required to verify that you can repay.
Instead of tax returns, the lender reviews 12 to 24 months of personal or business bank statements and uses your deposits to calculate qualifying income, usually after applying an expense factor to business accounts. It is built for owners whose write-offs make their taxable income look smaller than what the business actually earns.
Requirements vary by lender. Most look for a history of self-employment, often two years, 12 or 24 months of consecutive statements, a down payment, reserves after closing and a credit review. Many also ask for a business license or a letter from your CPA confirming the business.
Yes. Self-employed borrowers qualify every day, either with tax returns on a conventional loan or with bank statements, a P&L or 1099s on a Non-QM loan. The right path depends on how your income shows up on paper, and as a broker we can price both.
Conventional loans generally look for two years of self-employment history. Fannie Mae allows as little as 12 months on your most recent tax returns if you previously earned similar income in the same line of work. Bank statement programs set their own rules, so it varies by lender.
A Non-QM (non-qualified mortgage) falls outside the standard Qualified Mortgage rules, usually because income is documented with bank statements, a P&L, assets or rental income instead of tax returns. Lenders are still required to verify that you can repay. It is a documentation difference, not a subprime product.
General information only, not a commitment to lend. Loan programs, guidelines, interest rates and terms are subject to change without advance notice.
Run your bank statements across our lender network.
Tell us about your business and what you want to buy or refinance. We will show you which lenders fit and what it takes to close.