Bank Statement Loans
Qualify using bank deposits instead of tax returns.
Overview
Bank statement loans are built for self-employed borrowers and real estate investors whose true earning power doesn't always show up on a tax return after standard business write-offs. Instead of pay stubs and W-2s, we use 12 to 24 months of your personal or business bank statements to calculate qualifying income based on your actual cash flow — for a purchase, a refinance, or funding renovations.
Who It’s For & What You’ll Need
- 12 to 24 months of personal or business bank statements, depending on the program
- A minimum time self-employed, commonly around two years, though this varies by lender
- A qualifying credit score and down payment
- Business documentation, such as a business license or a letter from your CPA, in some cases
- A debt-to-income ratio calculated from your bank-statement-derived income, within the lender’s guidelines
Benefits
- No tax returns required, which helps borrowers whose write-offs reduce their reported taxable income
- Built for business owners, gig workers, freelancers, and 1099 contractors
- Usable for a primary residence, second home, or investment property purchase or refinance
- Income calculated from real cash flow rather than a single tax-return figure
Common Scenarios
- A small business owner whose tax returns show significant deductions that understate their real monthly income.
- A 1099 contractor with strong, consistent deposits but only one year of traditional tax documentation.
- A real estate investor using rental and business income together to qualify for a portfolio purchase.
Frequently Asked Questions
Who actually qualifies as "self-employed" for this program?
Generally, anyone who owns 25% or more of a business, works as a 1099 contractor, or otherwise doesn’t receive a traditional W-2 paycheck. We can confirm whether your specific situation fits.
Should I use personal or business bank statements?
It depends on how your income flows through your accounts — some borrowers qualify more favorably using personal statements, others using business statements or a blend of both. We’ll review your statements and recommend the better path.
How is my qualifying income actually calculated?
Lenders average your qualifying deposits over the statement period and apply an expense factor (a percentage assumed to cover business costs) to arrive at a usable monthly income figure. The exact method varies by lender.
Can I use a bank statement loan for a cash-out refinance?
In many cases, yes — bank statement programs are available for both purchase and refinance, including cash-out, subject to the lender’s guidelines and available equity.
Related Calculators
Run your own numbers before you apply:
Ready to Move Forward with Bank Statement Loans?
Start your application, or talk it through with a loan officer first — whichever fits where you are.