Bank statement loan

Self-employed?Qualify on deposits, not W-2s.

Bank statement loans are non-QM (non-qualified mortgage) programs designed for self-employed borrowers, 1099 contractors, and business owners whose tax returns understate their actual income.

Get Pre-Approved (904) 389-4635

What a bank statement loan is

Self-employed borrowers often legitimately deduct business expenses to reduce taxable income. The result: tax returns that show $80K of net income on a business that produces $250K of cash flow. Conventional underwriting only sees the $80K.

A bank statement loan looks at 12 to 24 months of business or personal bank statements and qualifies you on actual deposits, applying a reasonable expense ratio. The gap between "tax-return income" and "real income" stops being the problem.

Who qualifies

Eligibility at a glance

Self-employed file, friendly underwriting.

12-24

Months of statements

Most programs accept 12; some require 24 for the strongest pricing.

640+

Min credit score

Floor varies by program. 700+ unlocks better rates.

10-25%

Down payment

Higher than conventional but accessible. 20% common.

Other qualifying details:

Two years of self-employment (some programs flex to 1 year with strong file)
Business statements (deposits in business account) or personal statements (deposits in personal account from business income)
Letter of explanation for unusual deposits: large transfers, one-time events
Property: primary residence, second home, or investment all possible

Who this fits well

Doctors, dentists, attorneys with established practices
1099 sales reps, consultants, real estate agents (especially Realtors)
Business owners (LLC, S-Corp) whose K-1 understates take-home
Long-haul truckers, contractors, tradespeople with steady cash flow
Anyone whose tax returns show "low" income but bank statements show real cash flow

When to look at conventional instead

W-2 employee with full pay-stub history: conventional almost certainly cheaper
Self-employed but tax returns DO show your real income: conventional wins
New self-employment (under 1-2 years): may not qualify for either; rebuild track record first

Bank statement questions

What self-employed borrowers ask.

Do you actually look at every transaction?

Underwriters look at the deposit pattern. Recurring deposits get the strongest credit; one-off transfers get questioned. Large unusual deposits need a brief letter of explanation. We coach you through what to expect.

Business or personal statements?

Either works depending on the program and how you receive income. Personal statements work when business income is consistently transferred to your personal account. Business statements work when most cash flow stays in the business account.

What's the rate vs conventional?

Bank statement loans price higher than conventional - typically 0.5% to 1.5% above comparable conventional rates - because they're non-QM. The trade-off is that you actually qualify; conventional may not approve at all.

Can I refinance into conventional later?

Yes. Once you have two years of strong tax returns and conventional accepts your income on paper, refinancing into a conventional loan is the standard path to drop the rate.

Self-employed and ready

Get a real bank statement quote today.

Bring 12 to 24 months of bank statements (business or personal). We model what underwriting will see before you commit.

Get Pre-Approved (904) 389-4635