Do I need tax returns for a Bank Statement Mortgage?

No. This program is designed for borrowers whose tax write-offs may lower their qualifying income. We analyze your real cash flow from deposits instead of your tax return net income.

What are the requirements for a Bank Statement Loan?

Typically, you need 12-24 months of bank statements, proof of self-employment for at least 1-2 years, a qualifying credit score, and a down payment (often 10-20%).

Can I get a 40-year mortgage with a Bank Statement Loan?

Yes. Some of our Bank Statement Loan programs offer loan terms up to 40 years, which can help lower your monthly payments compared to a standard 30-year mortgage.

Bank Statement Loans for Self Employed Borrowers

Q: What is a Bank Statement Loan?

A Bank Statement Loan is a Non-QM mortgage that allows self-employed borrowers to verify income using 12 to 24 months of personal or business bank statements, rather than providing tax returns or W-2s.

Bank Statement Loans for Self-Employed Borrowers

A Flexible Mortgage Option for Entrepreneurs, Freelancers, and Business Owners

Bank statement loans are a powerful solution for borrowers who don’t fit the traditional mortgage mold. If you’re self-employed, a business owner, or an investor without standard income documentation like W-2s or pay stubs, this type of non-QM loan may help you secure home financing using your bank statements instead.

What Is a Bank Statement Loan?

A bank statement loan is a type of non-qualified mortgage (non-QM) that allows borrowers to verify income using personal or business bank statements, rather than tax returns or pay stubs. This makes it an ideal mortgage option for self-employed individuals who can demonstrate consistent cash flow through their deposits.

Who Benefits from Bank Statement Loans?

Bank statement loans are commonly used by:

Entrepreneurs and business owners: If you’ve owned a business for at least 1–2 years and can show consistent deposits, you may qualify.

Self-employed professionals: Freelancers, contractors, and consultants can qualify based on their income history shown in bank statements.

Real estate investors: Even without traditional employment income, consistent rental or investment-related deposits may support loan eligibility.

How Do Bank Statement Loans Work?

Unlike conventional mortgages, which rely on W-2s and tax returns, bank statement loans rely on alternative documentation:

What You’ll Need:

12 to 24 months of personal or business bank statements

Proof of self-employment (typically 1–2 years)

Qualifying credit score (minimum requirements vary by lender)

Qualifying debt-to-income ratio (DTI)

Liquid assets may be required, but standards will vary by lender

Lenders will analyze your average monthly deposits to determine your qualifying income. They may also consider your expense ratio if you use business accounts.

Benefits of Bank Statement Loans

Designed for Self-Employed Borrowers

If tax write-offs or variable income make it hard to qualify for traditional loans, bank statement mortgages provide a realistic path to homeownership.

Flexible Qualification Requirements

Because this is a non-QM loan, guidelines are more adaptable than those of conventional loans. Some programs allow for higher DTI ratios or reduced asset documentation.

Longer Loan Terms Available

Borrowers may be eligible for loan terms up to 40 years, offering lower monthly payments and more manageable cash flow.

No Tax Returns or W-2s Required

Your ability to repay is based on real income from your business or freelance work.

Is a Bank Statement Loan Right for You?

If you're a motivated homebuyer with non-traditional income, a bank statement mortgage can offer the flexibility and approval pathway you need.