A bank statement loan lets self-employed borrowers qualify using 12 or 24 months of personal or business bank deposits instead of tax returns. The lender averages your deposits, applies an expense factor for business accounts, and uses that as your income. It is built for business owners, 1099 contractors and gig workers whose tax returns understate what they really earn.
Key takeaways
- Qualify on deposits, not tax returns
- 12 or 24 months of statements
- For a home you live in, a second home or a rental
- Clean, consistent deposits make it easier
Why tax returns hurt self-employed borrowers
Good accountants minimize taxable income. That is great in April and painful when you apply for a mortgage, because a conventional loan qualifies you on the income after write-offs. A bank statement loan looks at what actually comes into your accounts.
How income is calculated
- Personal statements: qualifying deposits are averaged over 12 or 24 months.
- Business statements: deposits are averaged, then an expense factor is applied to account for business costs.
- Transfers between your own accounts and one-time deposits are generally excluded.
Who it fits
- Business owners and partners
- 1099 contractors and gig workers
- Consultants, contractors and skilled trades
- Anyone whose tax returns don't reflect their real cash flow
Our bank statement program at a glance
- Loan amounts up to $4 million
- Credit scores from 620
- Debt-to-income up to 55%
- Primary homes, second homes and investment properties
Program guidelines as of October 2026 and subject to change. Not all applicants will qualify.
How to prepare
- Keep business and personal money in separate accounts
- Avoid large unexplained cash deposits
- Avoid overdrafts and NSF fees in the months before you apply
- Have proof of at least two years of self-employment ready (a CPA letter or business license)
Buying a rental instead? A DSCR loan may be even simpler.
Common questions
How many months of bank statements do I need?
Usually 12 or 24 months. The right choice depends on how consistent your deposits have been.
Can I use a bank statement loan for an investment property?
Yes. Bank statement loans work for primary homes, second homes and investment properties.
Are rates higher on bank statement loans?
Typically somewhat higher than conventional loans, because the documentation is different. We will compare both if you could qualify either way.
Brad or Buddy will review your goals and send you a personal game plan within the hour. No credit pull.
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