A bank statement loan is built for self-employed borrowers whose tax returns don't fully reflect their real income, since write-offs and deductions can make taxable income look lower than actual cash flow. Instead, the lender looks at 12–24 months of bank statements to establish your income.
Generally a good fit if you...
- Are self-employed or a business owner
- Write off enough expenses that your tax returns understate your real income
- Have strong, consistent deposits even if your reported taxable income is lower
General guidelines
- Documentation: typically personal and/or business bank statements in place of tax returns and pay stubs
- Down payment: usually higher than a conventional loan, often in the 10–20%+ range
- Rate: generally higher than a conventional loan to offset the reduced documentation
Self-employed and tired of your tax returns working against you?
Every situation is different, and these are general guidelines — the fastest way to know where you stand is a quick conversation. Send us a message or visit our team page to apply directly.