If you’re self-employed or a business owner, proving income for a mortgage can be a challenge. Bank statement loans offer a flexible alternative by using 12 to 24 months of bank statements instead of tax returns, allowing you to qualify based on actual cash flow. Find out how a bank statement loan can help you buy or refinance a home today!
Bank statement loans are a type of mortgage designed for self-employed borrowers, freelancers, business owners, and independent contractors who do not have traditional W-2 income. Instead of using tax returns or pay stubs, lenders evaluate income based on bank deposits over 12 to 24 months to determine mortgage eligibility.
Bank statement loans are ideal for entrepreneurs, gig workers, real estate investors, and high-net-worth individuals who have significant cash flow but may show lower taxable income due to business deductions. If you’ve been turned down for a conventional loan because of fluctuating income or complex tax returns, a bank statement loan provides a flexible path to homeownership
Instead of requiring W-2 forms or tax returns, bank statement loans use personal or business account statements to verify income. Lenders review deposits over a 12- to 24-month period, calculating monthly average earnings to determine how much home you can afford. These loans may require a higher credit score and down payment compared to conventional loans, but they offer greater flexibility in income verification.
Bank statement loans can be structured as fixed-rate or adjustable-rate mortgages (ARMs). Borrowers can also access jumbo bank statement loans for higher-priced homes, and some lenders offer interest-only payment options. These loans are available for primary residences, second homes, and investment properties, giving borrowers multiple financing solutions.
Bank statement loans provide income verification flexibility, making it easier for self-employed borrowers to qualify. They offer higher loan limits, lower documentation requirements, and options for those with non-traditional income sources. These loans also allow for higher debt-to-income ratios, recognizing that business owners may have fluctuating earnings.
If traditional mortgage approval has been difficult due to tax return complications, a bank statement loan could be the ideal solution. These loans allow you to qualify based on your actual cash flow rather than taxable income, providing a streamlined approval process. Speaking with a mortgage specialist can help determine if a bank statement loan fits your home financing goals.
We specialize in helping self-employed borrowers secure flexible mortgage solutions using bank statements instead of tax returns. Whether you’re a business owner, freelancer, or independent contractor, we offer customized loan programs to meet your unique financial needs.
From loan pre-qualification to closing, our team provides personalized service, ensuring a smooth mortgage experience without the roadblocks of traditional income verification. Contact us today to explore your options and take the next step toward homeownership!
From first-time homebuyers to seasoned investors, we offer a wide range of Home Loan and Mortgage solutions designed to meet your unique needs. Discover competitive rates, flexible terms, and expert support to help you achieve your homeownership goals.
A bank statement loan is a mortgage designed for self-employed borrowers who do not have W-2 income. Instead of tax returns, lenders review 12 to 24 months of bank statements to determine income eligibility. This allows business owners, freelancers, and gig workers to qualify based on actual deposits rather than adjusted taxable income.
Conventional loans require W-2s, pay stubs, and tax returns to verify income, making it difficult for self-employed borrowers to qualify if they take significant tax deductions. Bank statement loans offer alternative income verification, using bank deposits instead of tax filings, which provides a more accurate picture of cash flow.
Yes! Lenders analyze total deposits over 12 to 24 months, calculating a monthly average income to determine loan eligibility. Seasonal workers, business owners, and freelancers who experience income fluctuations can still qualify as long as cash flow is consistent over time.
Absolutely. Freelancers, consultants, and gig economy workers can use bank statement loans to qualify without W-2s or employer verification. Lenders consider consistent deposits in personal or business bank accounts to determine income.
Not necessarily. Bank statement loans are available to sole proprietors, LLC owners, and independent contractors. If you earn income outside of traditional employment, you may qualify by providing personal or business account statements.
Bank statement loans provide greater flexibility by allowing borrowers to qualify based on real cash flow rather than taxable income. These loans remove the need for complex tax return calculations and provide higher debt-to-income ratio allowances, making it easier for self-employed buyers to secure home financing.
Many self-employed borrowers take deductions that lower their taxable income, making it harder to qualify for conventional loans. Bank statement loans allow you to use gross income deposits from your bank account rather than adjusted income from tax returns, increasing loan eligibility.
Interest rates depend on credit score, loan amount, and down payment. While some bank statement loans may have slightly higher rates than conventional loans, borrowers with strong financials and a larger down payment can access competitive rates.
Lenders require:
Yes. Borrowers can use either personal or business bank statements, depending on how they manage their finances. Some lenders combine multiple accounts to calculate total qualifying income.
Most bank statement loans require a credit score of 620 or higher, but borrowers with 700+ credit scores typically qualify for lower interest rates and better loan terms.
Most lenders prefer at least two years of self-employment history, but some programs allow one year of business ownership if the borrower has strong financials and prior industry experience.
Down payment requirements vary by lender. While some programs allow as little as 10 percent down, borrowers with larger down payments may qualify for better rates and lower overall loan costs.
Yes! Borrowers who don’t qualify can explore:
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