Self-employed financing using bank statements instead of traditional tax returns
Perfect for self-employed borrowers whose tax returns don't reflect their true earning capacity due to business deductions.
Income calculated from 12-24 months of bank statements, analyzing consistent deposits to determine qualifying income.
Streamlined documentation process focusing on bank deposits rather than complex tax return analysis.
Bank statement loans are designed for self-employed borrowers, entrepreneurs, and business owners whose tax returns don't accurately reflect their true earning capacity due to business write-offs, depreciation, or other legitimate tax strategies. These loans use bank statements to verify income instead of traditional tax return documentation.
This loan type is perfect for borrowers who show lower income on tax returns due to business deductions but have strong cash flow demonstrated through consistent bank deposits. Common candidates include independent contractors, freelancers, small business owners, real estate agents, and professionals with variable income streams.
Income calculation typically uses 12-24 months of personal or business bank statements, analyzing average monthly deposits to determine qualifying income. Lenders may use 50-75% of average deposits as qualifying income, accounting for business expenses and tax obligations not shown in the deposits.
Documentation requirements include 12-24 months of bank statements (personal and/or business), business license and registration, CPA letter confirming self-employment status, profit and loss statement (may be required), and standard credit and asset documentation. Some lenders accept as few as 12 months of statements for strong borrowers.
Credit score requirements are typically higher than conventional loans, usually requiring 680+ for the best terms, though some programs accept scores as low as 620 with compensating factors. Higher credit scores help offset the reduced income documentation and result in better rates and terms.
Down payment requirements generally range from 10-25% depending on the loan amount, property type, and borrower strength. Investment properties typically require 25% down, while primary residences may qualify with as little as 10% down for strong borrowers.
Interest rates are typically 0.25-1% higher than conventional loans due to the alternative documentation and perceived higher risk. However, rates are often more competitive than other non-QM loan products and the qualification flexibility makes them attractive for self-employed borrowers.
Bank statement loans are available for primary residences, second homes, and investment properties. Loan amounts can range from conforming limits up to jumbo loan amounts, with some lenders specializing in high-balance bank statement loans for affluent self-employed borrowers.
The underwriting process focuses on cash flow analysis rather than traditional income verification. Lenders look for consistent deposits, reasonable business expenses, and overall financial stability demonstrated through banking activity rather than tax return income.
Dani works with specialized non-QM lenders who understand self-employed borrower challenges and offer competitive bank statement loan programs. He helps organize your financial documentation, presents your income story effectively, and finds lenders who appreciate your business model and cash flow strength.
Review 12-24 months of bank statements to analyze income patterns and cash flow.
Collect business license, CPA letter, and other required self-employment documentation.
Connect with specialized non-QM lenders experienced with self-employed borrowers.
Lender analyzes cash flow patterns and business stability for approval decision.
Complete your bank statement loan closing with competitive terms for self-employed.
Let Dani help you secure financing using your bank statements instead of tax returns, perfect for self-employed borrowers.