What Is a Bank Statement Loan?

A bank statement loan is a type of Non-QM (Non-Qualified Mortgage) loan designed for borrowers who don’t qualify using traditional income documentation.

Instead of W-2s or tax returns, we use 12–24 months of bank statements to determine income—making it a great option for self-employed borrowers, business owners, and 1099 earners.

Who Is This For?

Bank statement loans are ideal if you:

• Own a business or are self-employed
• Write off a lot of expenses on your taxes
• Have strong cash flow but lower reported taxable income
• Are a contractor, freelancer, or commission-based earner

How It Works

Instead of reviewing tax returns, lenders analyze your bank deposits to calculate usable income.

• Personal bank statements → income based on deposits
• Business bank statements → income adjusted using an expense factor
• Typically requires 12 or 24 months of statements

Key Benefits

• No tax returns required
• Flexible income qualification
• Options for primary, second homes, and investment properties
• Loan amounts often higher than traditional programs
• Can be used for purchase or refinance

Things to Consider

• Typically requires a higher down payment (often 10–20%+)
• Interest rates are usually higher than conventional loans
• Strong credit helps secure better terms

Why Use a Bank Statement Loan?

Traditional loan programs don’t always reflect real income—especially for self-employed borrowers.

A bank statement loan allows you to qualify based on how you actually earn and deposit money, not just what shows on your tax return. ** Subject to credit approval.