Great for self-employed individuals such as:
Small business owners
Freelancers & gig workers
Independent contractors
Consultants
Real estate agents
Entrepreneurs with fluctuating income
Typically:
12 or 24 months of bank statements (personal or business)
Valid ID
Proof of business ownership (e.g., business license, CPA letter)
Credit report
📌 No tax returns, W-2s, or pay stubs required.
Lenders analyze deposits from your statements:
Personal bank statements: 100% of deposits may qualify
Business bank statements: A business expense factor (usually 40%–50%) is applied
Some lenders allow a CPA-written expense ratio to increase qualifying income.
Bank statement loans are a variety of non-qualified mortgage loans that let you qualify based on bank statements instead of tax returns. The lender will require the borrowers to provide a certain number of months' worth of bank statements to demonstrate their ability to repay the loan. This allows self-employed borrowers to access home loans, even if their taxes don't signify their total income. Bank statement mortgage programs are often a good option for self-employed individuals, business owners, and retirees who need an alternative income verification option.
The application procedure for a bank statement loan varies from a conventional mortgage. When you apply, you'll need to provide the lender bank statements from the past year or two instead of the past two or three months, as well as information about your business and expenses. In addition, you'll need to provide statements if you have personal and business accounts.
The type of business, the number of employees, and the business's physical location are some of the questions that bank statement lenders want to know to decide the expense factor.
Depending on your credit score, you might also need to make a bigger down payment. Generally, you may be eligible for a bank statement loan with a score as low as 620, but a 700 or higher gets you a better rate and terms.
Different bank statement loan programs are available depending on the lender and your particular situation. For example, while most lenders require a minimum of 12 months of bank statements, some may need less. Remember that applicants who can provide 24 months of statements may qualify for better rates and terms.
Additionally, some lenders may require your business bank statements instead of personal bank statements. Therefore, you may still be able to use your statements with those lenders if you don't have business bank statements. However, they might use a smaller percentage of your deposits for qualifying purposes.
In some situations, borrowers also may be required to provide a profit and loss statement (P&L) for their business prepared by a tax professional.
