Bank Statement Loans

Qualify using 12 or 24 months of bank deposits instead of tax returns — built for self-employed borrowers and business owners.

Bank Statement Loans at a Glance

Program Highlights

✓ 12 or 24 months bank statements
✓ Personal or business accounts
✓ No tax returns required
✓ Self-employed 2+ years
✓ Loan amounts up to $3M
✓ Primary, second home, investment

Requirements

✓ 660+ credit score
✓ 10-20% down payment
✓ 2+ years self-employment
✓ CPA letter or business license
✓ 50% expense factor (personal) / 100% (business)
✓ 6-12 months reserves

Why Self-Employed Borrowers Love This Program

If you're self-employed, your tax returns probably don't reflect your true income — write-offs, depreciation, and business deductions reduce your taxable income. Bank statement loans look at your actual deposits instead. The lender reviews 12-24 months of statements and uses average monthly deposits as your qualifying income. For business accounts, most lenders apply an expense factor (typically 50%) to determine net income. This program is a game-changer for business owners, freelancers, gig workers, and 1099 contractors who show strong cash flow but modest taxable income.

The Bank Statement Process

Gather Statements

Twelve or twenty-four months of personal or business bank statements — no tax returns required.

Income Calculation

Deposits are averaged and reduced by an expense factor: 50% on personal accounts, or up to 100% of qualifying deposits on business accounts.

Verify the Business

A CPA letter or business license confirms two or more years of self-employment.

Underwrite & Close

Loan amounts run up to $3M across primary, second home, and investment properties.

Who Bank Statement Loans Work Best For

Business Owners

Strong deposits but a tax return that understates real income after deductions.

1099 Contractors

Independent contractors and gig workers whose income does not fit a W-2 box.

Commission-Based Earners

Realtors, brokers, and sales professionals with variable but consistent deposit history.

Heavy Write-Off Filers

If aggressive deductions have disqualified you from conventional financing, deposits tell the truer story.

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Get a Bank Statement Loan Quote

Andrew Baker · NMLS 2688601 · (949) 665-9090

Common Questions

What is a bank statement loan?

A bank statement loan qualifies self-employed borrowers on deposits rather than on tax returns. The lender averages 12 or 24 months of business or personal statements to derive qualifying income. It exists because write-offs that reduce taxable income also reduce the income a traditional underwriter can count.

How many months of bank statements do I need?

Most programs use either 12 or 24 months, with 12-month programs generally priced differently than 24-month ones. Lenders apply an expense factor to business account deposits, either a fixed percentage or one supported by a CPA letter or profit-and-loss statement. Personal account programs are handled differently.

Do I need to be self-employed for two years?

Most bank statement programs look for a two-year self-employment history, though some lenders will consider a shorter track record with compensating factors. Guidelines differ meaningfully between wholesale lenders, which is why a file that misses one program's seasoning requirement may still fit another's.

Ready to Get Started?

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