Bank Statement Loan
Your deposits prove your income. No tax returns needed.
The bank statement loan program is designed for self-employed business owners, freelancers, consultants, and entrepreneurs who demonstrate their income through consistent bank deposits rather than W-2s or tax returns. By analyzing 12 to 24 months of business or personal bank statements, we calculate qualifying income from real cash flow — not the reduced figure your accountant optimizes for tax purposes.
- 12 or 24 months of bank statements used
- No tax returns or W-2s required
- Expense ratio method for business accounts
- Primary residence, second home, and investment eligible
Why choose this loan
Benefits of a Bank Statement Loan
Bypasses the tax-return income gap
Self-employed borrowers are often denied conventional loans because aggressive tax deductions reduce their documented net income. Bank statement loans use gross deposits instead, reflecting true earning power.
Both personal and business accounts accepted
Qualifying income can be derived from personal bank statements (100% of deposits counted) or business bank statements (deposits reduced by an expense ratio — typically 50–90% — to arrive at qualifying income).
24-month option for maximum qualification
Using 24 months of statements averages out seasonal income fluctuations and produces the most stable qualifying income figure — especially useful for borrowers in cyclical industries.
Competitive for self-employed high earners
Self-employed borrowers with strong cash flow but high tax deductions often qualify for larger loan amounts under bank statement programs than they ever could with conventional income documentation.
Eligibility
Do you qualify?
Typical guidelines for a Bank Statement Loan. Final eligibility is determined during underwriting.
- Must be self-employed for a minimum of 2 years (verified via business license, CPA letter, or business formation documents)
- 12 or 24 months of consecutive personal or business bank statements required
- Minimum credit score of 660 (720+ for best pricing)
- Down payment of 10–20% depending on loan amount and credit profile
- Loan amounts up to $3 million on some programs; jumbo bank-statement loans available
- Property types: primary residence, second home, and non-owner-occupied investment properties
Sample scenarios
Illustrative Bank Statement Loan rates
30-Year Fixed (12-month statements)
7.50%
Illustrative; rate varies with credit/LTV
30-Year Fixed (24-month statements)
7.25%
Illustrative; lower rate for longer history
5/1 ARM (bank statement)
7.00%
Illustrative start rate
Rates shown are for illustrative purposes only, are not a quote or guarantee, and do not reflect a specific offer. Actual rates depend on credit score, loan amount, loan-to-value, occupancy, and other factors, and change daily. Contact us for a personalized rate quote.
How it works
Your path to approval
- 1
Gather your bank statements
Pull 12 or 24 months of consecutive statements from your primary business or personal account. We'll analyze deposit patterns and apply the appropriate expense ratio to determine qualifying income.
- 2
Income calculation review
Our team performs a detailed deposit-by-deposit analysis, excluding transfers, loan proceeds, and non-recurring items. You'll see exactly what income figure we'll use for qualification before you apply.
- 3
Pre-approval and rate lock
With qualifying income established, we issue a full pre-approval and lock your rate. The process from here mirrors a standard mortgage: appraisal, underwriting, and closing.
- 4
Close and move forward
Bank statement loan closings typically run 30–45 days. We'll keep your file prioritized and communicate proactively throughout underwriting.
Bank Statement Loan vs. Conventional Self-Employed
| Bank Statement Loan | Conventional (Self-Employed) | |
|---|---|---|
| Income documentation | 12–24 months bank statements | 2 years tax returns + YTD P&L |
| Income calculation | Gross deposits (minus expense ratio) | Net income from Schedule C/K-1 |
| Impact of tax deductions | Minimal — gross deposits used | High — deductions reduce qualifying income |
| Rate vs. conventional | Typically 0.75–1.5% higher | Baseline market rate |
| Best for | High-deduction self-employed | Self-employed with clean tax returns |
Frequently asked questions
How is income calculated from bank statements?
For personal bank statements, we typically count 100% of deposits (excluding transfers between accounts, loan proceeds, and non-recurring items) and average the monthly total over 12 or 24 months. For business bank statements, we apply an expense ratio (commonly 50–90% depending on the business type) to arrive at a net qualifying income figure.
Can I use both personal and business bank statements?
Some lenders allow blending both, but most programs require you to choose one source. Business accounts typically have higher total deposits but a larger expense ratio reduction. Personal accounts use 100% of deposits but may show lower totals. We'll model both for your situation.
How long do I need to be self-employed to qualify?
Most bank statement programs require a minimum of two years of self-employment, evidenced by a business license, CPA letter, Secretary of State filing, or similar documentation. This verifies the income stream is established and ongoing.
Is there a loan limit on bank statement programs?
Bank statement loans are non-QM products and aren't bound by conforming limits. Many programs allow loan amounts up to $2–3 million. Larger amounts are possible through portfolio or private lenders. Rates and down payment requirements typically increase as loan amounts rise.
Ready to explore a Bank Statement Loan?
Talk to a loan officer today — friendly, no-pressure guidance from real humans.