Bank Statement Loans
Bank Statement Loans for Self-Employed Borrowers
If you are self-employed with a healthy cash flow, but are unable to qualify for a loan through the traditional methods of income verification, a bank statement loan may be just right for you. It assists business owners, freelancers, and independent contractors looking to purchase or refinance a home without the use of tax returns, W-2s or employment verification forms.
What Are Bank Statement Loans?
Bank statement loans fall within the category of non-QM (non-qualified mortgage) loans which enable borrowers to utilize personal or business bank statements for income verification in lieu of more formal income verification documents. Generally, lenders examine 12 to 24 months of statements to determine average monthly inflow.
Bank statement loans help make homeownership attainable for many first-time borrowers who may not qualify under traditional lending policies. They increase access to credit, making it easier for people to own homes.
Who Are Bank Statement Loans For?
This loan option is best suited for:
- Self-employed individuals
- Freelancers and gig economy workers
- Sole proprietors and LLC owners
- Borrowers with write-offs that lower reported income
- Small business owners with high cash flow but limited W-2s or tax documents
Key Benefits of Bank Statement Loans
- No tax returns, W-2s, or pay stubs required
- Qualify based on 12–24 months of bank statements
- Use either personal or business bank statements
- Loans available for primary, second homes, or investment properties
- Flexible underwriting tailored for entrepreneurs and self-employed borrowers
Typical Requirements for Bank Statement Loans
- Minimum 12–24 months of consecutive bank statements
- A consistent and verifiable deposit history
- Minimum credit score (varies by lender, often 620+)
- 10%–20% down payment, depending on the program
- Proof of self-employment (business license, CPA letter, etc.)
- Loan purpose: purchase, refinance, or cash-out
Note: Loan approval and terms vary by lender and borrower profile. All applications are subject to underwriting.
FAQ
Self-employed individuals can obtain a bank statement loan against a mortgage by using their bank deposit history instead of tax returns to verify income.
Most lenders have a 12–24 month minimum requirement when it comes to evaluating income with bank statements.
Yes. Depending on the income structure, lenders tend to accept personal and/or business accounts.
No. Bank statement loans can be used for the purchase of a home, refinancing, or cash-out purposes.
Typically, yes. Proof will normally consist of a business license, letter from a CPA, or corporate documents.
