“My tax returns decide what I can buy.”
Your Deposits Can Decide Instead
A bank statement loan qualifies you on what actually hits your account, not your taxable income.
Write offs save you money at tax time, but they can make it look like you barely earn anything when you apply for a mortgage. A bank statement loan uses your actual deposits instead of your tax returns, so you qualify on what your business really brings in.
A bank statement loan is a mortgage for self employed borrowers that uses 12 or 24 months of bank statements to calculate your income instead of tax returns. The lender averages your deposits to figure what you earn, so the write offs that lower your taxable income don't hold you back.
Instead of looking at your tax returns, the lender reviews 12 or 24 months of your personal or business bank statements and averages your deposits. With personal statements, eligible deposits usually count in full. With business statements, the lender applies an expense factor, a percentage it assumes goes to running the business, or uses the expense figure from your CPA.
You'll still need good credit, a down payment, and reserves, and most lenders want at least two years of self employment. Bank statement loans work for primary homes, second homes, and investment properties. Rates are usually higher than a conventional loan, which is the cost of qualifying without tax returns.
A bank statement loan makes the most sense when your business is doing well but your tax returns don't show it. If your accountant is doing their job, your taxable income is probably a lot lower than what actually comes in. That's great in April and a problem when a conventional lender divides that number by twelve.
It's also a fit if you recently grew a lot, changed how your business is set up, or had one slow year that drags down a two year average. Your bank statements show where the business is now, not where it was on last year's return.
If your tax returns already show enough income to qualify, a conventional loan will usually cost less, so we'll check that first. And if you're buying a rental, a DSCR loan might be simpler, since it qualifies on the rent instead of your income at all.
“My tax returns decide what I can buy.”
A bank statement loan qualifies you on what actually hits your account, not your taxable income.
“I’d have to stop writing things off.”
You don’t have to pay more in taxes to qualify. Your statements show the real cash flow.
“Self employed buyers need 20% down.”
Many bank statement loans start around 10% down for a primary home with good credit.
Here’s the math on an example with 12 months of business statements and a 50% expense factor.
Example only. The expense factor depends on the lender and your business, and some lenders use a CPA letter instead.
Three ways to qualify without your tax returns doing all the work. The right one depends on what you’re buying and what your paperwork shows.
My take: don’t change how you file your taxes just to buy a house. Let’s look at both your returns and your statements and use whichever gets you the better deal.
Handle these before you shop.
Clean business and personal accounts make your deposits easier to count.
Transfers between your own accounts don’t count as income. Be ready to explain anything unusual.
Lots of overdrafts or NSF fees on your statements can be a problem for some lenders.
A business license, CPA letter, or website helps show you’ve been self employed for two years.
Here’s exactly what happens after you reach out.
Tell us the price range you’re shopping, your credit range, and how much you have saved. We start with a soft credit check, so your score isn’t touched.
Start My Pre-ApprovalSend your pay stubs, W2s, and bank statements. We compare your loan options side by side and send a letter with your max price to hand your Realtor.
Start My Pre-ApprovalOnce you’re under contract, we order the appraisal, work with title, and take your file through underwriting to closing day.
Start My Pre-Approval
A bank statement loan is a mortgage for self employed borrowers that uses 12 or 24 months of bank statements to calculate your income instead of tax returns. The lender averages your deposits to figure what you earn, so the write offs that lower your taxable income don't hold you back.
Self employed borrowers, business owners, and 1099 earners, usually with at least two years in business. Lenders also look at credit, down payment, and reserves.
Either, depending on the lender. Personal statements usually count eligible deposits in full. Business statements are reduced by an expense factor, or the lender may use your CPA's expense figure instead.
It's the share of business deposits the lender assumes goes to running the business. With a 50% expense factor, $20,000 in monthly business deposits counts as $10,000 of income. The factor depends on the lender and your type of business.
It varies by lender, credit, and property, but many bank statement loans start around 10% down for a primary home with good credit. Investment properties usually need more.
No. Bank statement loans replace tax returns with bank statements. You may need a business license, a CPA letter, or other proof that you've been self employed for at least two years.
Usually, yes. They typically run higher than conventional rates because the income isn't documented the standard way. Strong credit and a larger down payment help.
Yes. Bank statement loans can be used for primary homes, second homes, and investment properties.
Yes. If your tax returns later show enough income, you can refinance into a conventional loan to get a lower rate.
These are the loans self employed borrowers compare it with.
Qualify on a rental’s income instead of yours.
Learn More Non QMOther options for borrowers outside the standard box.
Learn More BuyThe lowest cost option when your returns show your income.
Learn More BuyCompare every purchase loan side by side.
Learn More RefinancePull equity from a home you already own.
Learn More BuyKnow your number before you shop.
Learn MoreFifteen minutes gets you a real number instead of a guess, and the soft credit check costs your score nothing.
Real Closings
Real families we have helped get from pre-approval to keys in hand.
Pick one and I'll match you to the right loan, the real numbers, and the next step. Takes about 60 seconds — no credit pull, no obligation.