Non-QM Loans
Bank Statement Loans
You run a successful business. You pay yourself differently than a W2 employee. Your tax returns show write-offs, not your real income. Bank statement loans were built for exactly this situation. Qualify based on actual cash flow, not what your accountant optimized for tax purposes.
No Tax Returns
Qualify on Cash Flow
12-24
Months of Statements
Self-Employed
Friendly
What Is a Bank Statement Loan?
A bank statement loan is a mortgage that uses 12 to 24 months of personal or business bank statements to verify income instead of tax returns, W2s, or pay stubs. Lenders calculate your qualifying income by averaging your deposits over the statement period, applying an expense ratio to business accounts to estimate actual take-home income.
For self-employed borrowers, business owners, freelancers, and contractors, this is often the most accurate reflection of real financial strength. Tax returns are designed to minimize taxable income, which means they routinely understate what someone actually earns and can afford. Bank statement loans cut through that and look at actual cash flow instead.
Ready to Get Started?
Let's Look at Your Bank Statements
No pressure, no runaround. Todd and Aaron will review your statements and tell you exactly what you qualify for.
Key Benefits
No Tax Returns Required
Your tax strategy should not be the thing that holds you back from buying a home. Bank statements show your real cash flow.
Qualify on Real Income
Lenders calculate income based on actual deposits, not what your accountant wrote off. Finally a loan that reflects what you actually earn.
Personal or Business Statements
Use personal or business bank statements depending on how your income flows. We find the approach that shows the strongest picture.
Primary, Second, Investment
Bank statement loans are available for primary residences, second homes, and investment properties. One solution for multiple goals.
Who Is It For?
Bank statement loans are built for borrowers whose financial strength shows up in their bank account rather than on a tax return. If you have been told you do not qualify for a conventional mortgage because your documented income is too low, the problem is often the documentation method, not your actual ability to afford the home.
This loan is a strong fit for:
- Business owners and entrepreneurs who write off significant expenses
- Freelancers and independent contractors with variable income
- Real estate investors whose rental income flows through business accounts
- Consultants, attorneys, and medical professionals with complex income structures
- Gig economy workers and commission-based earners
- Anyone who has been turned down by conventional lenders despite strong cash flow
Good to Know
Bank statement loans typically require a credit score of 620 or higher and a down payment of 10% to 20%. Rates are generally higher than conventional loans because of the alternative income documentation.
Todd and Aaron will run a full comparison so you know exactly what the loan costs and whether it makes sense for your situation.
Two Year Requirement
Self-Employed
2 Years.
Most bank statement programs require you to have been self-employed for at least two years. If you recently made the switch, Todd and Aaron can help you plan the right timing.
How the Process Works
Gather Your Bank Statements
We determine whether personal or business statements will produce the strongest qualifying income picture. Most programs require 12 to 24 months of statements from consistent accounts.
Calculate Qualifying Income
Todd and Aaron average your monthly deposits and apply the appropriate expense ratio to arrive at your qualifying income. For business accounts this is typically 50% to 75% of gross deposits depending on the industry.
Credit and Down Payment Review
We confirm your credit score and verify down payment funds. Bank statement loans typically require 10% to 20% down depending on the loan amount and program.
Appraisal and Underwriting
The property is appraised at standard market value. Underwriting reviews the bank statement income analysis alongside your credit profile and assets to issue approval.
Close on Your Terms
Once approved, we schedule closing and walk you through the final numbers. No last-minute surprises, no chasing down documents that do not apply to your situation.
Typical Timeline
21-30
Days to Close
Bank statement loans close on a similar timeline to conventional loans once the income analysis is complete. Having clean, organized statements ready at the start speeds things up significantly.
Worth Knowing
Keep Deposits Clean.
Large irregular deposits, transfers between accounts, and non-business income mixed into business accounts can complicate the income analysis. Todd and Aaron will review your statements before you apply and flag anything that needs to be addressed upfront.
Common Questions
How does the lender calculate my income from bank statements?
Lenders average your monthly deposits over the statement period — typically 12 or 24 months. For business accounts, they apply an expense ratio to estimate your net income. A common ratio is 50% for service-based businesses and up to 75% for some industries, meaning if your business deposits average $20,000 per month, your qualifying income might be calculated at $10,000 to $15,000 per month. Todd and Aaron will walk through the exact calculation for your specific accounts before you apply.
Can I use personal bank statements instead of business statements?
Yes. If your business income flows into your personal account or if using personal statements produces a stronger income picture, that is an option. The right choice depends on how your income is structured and which account shows the most consistent, cleanest deposit history. Todd and Aaron will review both and recommend the approach that works best for your situation.
Do I need to have been self-employed for a certain amount of time?
Most bank statement loan programs require at least two years of self-employment history. This is verified through business licensing, a CPA letter, or other documentation confirming how long you have been operating. If you recently transitioned from W2 employment, you may need to wait until you hit that two-year mark before this product is available to you.
What if my deposits are inconsistent from month to month?
Irregular deposit patterns can affect your qualifying income but do not automatically disqualify you. Lenders average the deposits over the full statement period, so strong months help offset slower ones. Very large one-time deposits may be excluded if they cannot be documented as regular business income. Todd and Aaron will review your statements in advance and give you a realistic picture of what lenders will see.
Can I refinance an existing mortgage using bank statements?
Yes. Bank statement loans are available for both purchases and refinances. If you have an existing mortgage and want to access equity or lower your rate but cannot qualify through conventional income documentation, a bank statement refinance may be the right path. Todd and Aaron will run the numbers and tell you whether the math makes sense.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710