For self-employed individuals and business owners, securing traditional mortgage financing can be challenging due to fluctuating income and complex tax returns. Bank statement loans offer an alternative solution, allowing borrowers to qualify based on their bank deposits rather than tax documents or W-2s.

What Is a Bank Statement Loan?

A bank statement loan is a type of mortgage designed for self-employed borrowers who may not have traditional proof of income. Instead of tax returns, lenders evaluate 12 to 24 months of bank statements to assess a borrower’s cash flow and ability to repay the loan. This makes it a great option for freelancers, entrepreneurs, and small business owners.

Benefits of Bank Statement Loans

• Easier Qualification: These loans allow borrowers to use bank deposits instead of tax returns or pay stubs.
• Higher Loan Amounts: Lenders may offer larger loan amounts based on cash flow rather than taxable income.
• Flexible Use: Bank statement loans can be used for primary residences, investment properties, or second homes.
• No Need for Traditional Employment Verification: Self-employed borrowers can qualify without W-2s or traditional proof of income.

Who Can Benefit From a Bank Statement Loan?

Bank statement loans are ideal for:

• Self-employed individuals and freelancers
• Business owners with fluctuating income
• Commission-based professionals
• Real estate investors seeking alternative financing

How to Qualify for a Bank Statement Loan

Lenders typically consider:

• 12 to 24 months of personal or business bank statements
• Credit score and down payment amount
• Debt-to-income ratio and overall financial health

The Bank Statement Loan Process

Here’s how our home loan process works:

• Complete our simple Bank Statement Loan Qualifier
• Receive options based on your unique criteria and scenario
• Compare mortgage interest rates and terms
• Choose the offer that best fits your needs