Your Business, Your Income, Your Loan
Bank Statement Loans are an alternative documentation option for self-employed borrowers or those with non-traditional income. Instead of tax returns, income is verified using 12–24 months of bank statements, providing flexibility for entrepreneurs and freelancers.
Highlights
Uses 12-24 months of personal or business bank statements to verify income
No tax returns or W-2s required for income qualification
Ideal for self-employed borrowers, freelancers, and business owners
Higher down payment requirements compared to traditional loans
Interest rates may be higher than conventional loans
Choose Your Path
FAQ
Who should consider a bank statement loan?
Self-employed borrowers, business owners, or freelancers whose tax returns don’t reflect their true income due to write-offs.
How is income calculated?
Lenders average 12–24 months of personal or business bank deposits to estimate consistent income. They also apply an expense factor to account for operating costs.
Is a letter from my Accountant required?
Often yes, especially when using business statements, to verify ownership and expense structure.
Are rates higher for bank statement loans?
Yes , these are considered non-QM loans (portfolio) and carry higher risk, so rates and origination fees are typically elevated.
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Disclaimer: Information provided is for educational purposes only and is subject to change. All loan programs, interest rates, down payment requirements, and terms are subject to credit approval, underwriting guidelines, investor requirements, and may change without notice. Not all applicants will qualify. Restrictions may apply, including but not limited to geographic limitations, property type, and occupancy requirements.