Key Takeaways
- Bank statement loans qualify the self-employed on 12–24 months of deposits instead of tax returns.
- Business write-offs no longer have to reduce your buying power.
- No W-2s, tax returns or 4506-C required.
- Works for primary homes, second homes and investment properties.
The cruel irony of self-employment: you spend all year legally minimizing taxable income, then a lender uses that same low number to decide how much home you can buy. Bank statement loans solve exactly this problem.
How they work
Instead of tax returns and W-2s, a bank statement loan uses 12 to 24 months of your personal or business bank deposits to calculate qualifying income. We total your deposits, apply a reasonable expense factor, and arrive at a monthly income figure that reflects how your business actually performs.
Personal vs. business statements
We’ll choose whichever tells the strongest story. Personal accounts often show a cleaner deposit picture; business accounts can capture more revenue with an expense-factor adjustment. Part of my job is picking the approach that qualifies you for the most.
Who it’s built for
Business owners, contractors, freelancers, consultants, real estate agents — anyone self-employed for about two years with healthy deposits. If you earn on 1099s, there’s a program for that too. It works for primary homes, second homes and investment properties alike.
What you’ll need
Generally: your bank statements, proof of self-employment, a credit profile we can work with, and a down payment. No tax returns, no endless underwriting surprises. If your tax return doesn’t reflect your real earning power, let’s look at your deposits together.
Related resources
Frequently Asked Questions
How do bank statement loans calculate income?
They total 12–24 months of your personal or business bank deposits and apply a reasonable expense factor to arrive at qualifying income.
Who should use a bank statement loan?
Self-employed borrowers, business owners, freelancers and 1099 earners whose tax returns understate their true income.
Do I need tax returns for a bank statement loan?
No. Bank statement loans are underwritten on deposits, so no tax returns, W-2s or 4506-C are required.
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