- Income documents
- 12 to 24 months of bank statements
- Tax returns
- Not required
- Down payment
- Typically 10% or more
- Who it is for
- Self-employed for 2+ years
What it is
A bank statement loan uses your deposits to show income in place of tax returns. It is designed for business owners and freelancers whose write-offs make their taxable income look smaller than it is.
How it works with a broker
The lender totals your deposits over 12 or 24 months and applies an expense factor to arrive at qualifying income. Personal or business statements can be used, and lenders treat them differently.
Choosing the right lender and the right set of statements can change your qualifying income by a wide margin. I run the numbers each way before submitting.
Common questions
Are rates higher than a conventional loan?
Usually somewhat, because the lender is taking a less standard view of income. Many borrowers refinance later once their tax returns support a conventional loan.
Can I use this for a primary home?
Yes. Bank statement loans are available for primary homes, second homes and investment properties.
Figures shown are typical guidelines and can vary by lender, credit profile and property. They are not an offer or commitment to lend.
Find out what you qualify for.
Answer a few questions and I will come back with real options, usually the same day. It takes about two minutes and does not affect your credit.