Self-Employed Mortgages · Non-QM
Bank Statement Loans for Self-Employed Borrowers
If you’re self-employed, your tax returns may not show what your business really earns. A bank statement loan qualifies you using your deposits instead. I help business owners find the right bank statement loan in California, Texas, Florida and Maryland, comparing 240+ lenders.
- NMLS #2087371
- 240+ Lenders
- English & فارسی
Who Bank Statement Loans Are For
A bank statement loan is a non-QM mortgage for borrowers who earn their income through their own business. Instead of using the net income on your tax returns, the lender looks at the money actually deposited into your bank account over 12 or 24 months.
That matters because business owners often take legal deductions for vehicles, equipment, home offices and depreciation. Those write-offs lower your taxes, but they also lower the income a regular lender can count. A self employed mortgage based on bank statements can close that gap.
These loans often fit:
- Small business owners and sole proprietors
- Independent contractors and 1099 workers
- Real estate agents, consultants and other commission earners
- Gig workers and freelancers with steady deposits
- Owners of partnerships, LLCs and S corporations
You can use a bank statement loan to buy a primary home, a second home or an investment property, depending on the lender.
12 vs 24 Months of Statements
Most lenders let you choose between 12 and 24 months of bank statements. The lender adds up your eligible deposits and divides by the number of months to get an average monthly income.
12 months
A 12-month program can help if your business has grown recently, because older, lower months aren’t counted. Some lenders price 12-month loans a little higher or want a stronger credit score.
24 months
A 24-month program gives the lender a longer history, which can help if your income goes up and down by season. It can also open up slightly better terms with some lenders.
Which one is better depends on your actual deposits. I’ll look at both periods and show you which gives the stronger qualifying income.
Personal vs Business Statements
You can usually qualify with either personal or business bank statements, but they’re calculated differently.
Personal bank statements
If your business income is deposited into your personal account, lenders often count most or all of the eligible deposits. Transfers between your own accounts, loans and other non-income deposits are taken out.
Business bank statements
Business accounts show revenue before expenses, so the lender applies an expense factor to estimate your profit. That factor may be a standard percentage set by the lender, or it may come from a letter from your CPA or tax preparer, or a profit and loss statement. The type of business can change the percentage.
Large one-time deposits usually need an explanation. With my accounting background, I can help you sort out which deposits count and prepare clear explanations before your file goes to underwriting.
Requirements & Documents
Every lender has its own rules, so treat this as a typical checklist rather than a guarantee:
- 12 or 24 months of complete bank statements (all pages)
- Proof you’ve been self-employed for a set period, often two years, through a business license, CPA letter or similar
- A credit score that meets the lender’s minimum, with better pricing at higher scores
- A down payment that is often larger than for a conventional loan, commonly at least 10% and sometimes more
- Cash reserves after closing, measured in months of payments
- A profit and loss statement or CPA letter if the lender asks for one
Because they’re non-QM loans, bank statement mortgages usually have higher rates than conventional loans. The trade-off is that you can qualify on what your business really brings in. If your income later shows up fully on your tax returns, you may be able to refinance into a conventional loan.
Bank Statement Loans in California, Texas & Florida
Whether you need a bank statement loan in California, Texas or Florida, the program follows lender guidelines rather than state rules, so the qualifying math is similar in every state where I’m licensed. Local costs are where the states differ:
- California: Higher home prices mean larger loan amounts, so some buyers need a bank statement loan above conforming limits. Property tax is based on the purchase price, starting from a 1% base rate plus local charges.
- Texas: Lower prices in many areas, but property taxes can be a big share of the payment and affect your debt-to-income ratio.
- Florida: Insurance and, for condos, HOA dues and building reserve rules can affect both the payment and whether a property qualifies.
I’m also licensed in Maryland, where the same program types are available.
Bank Statement Refinance
You can refinance with a bank statement loan too. Homeowners use it to lower their rate when rates drop, to switch from an adjustable to a fixed rate, or to take cash out for the business or other goals. Cash-out amounts are usually limited to a lower percentage of the home’s value than a purchase.
If you originally bought with a bank statement loan and your tax returns now show strong income, compare a conventional refinance too. I’ll price both.
Asset-Qualifier Alternative
Some borrowers have significant savings or investments but irregular income. An asset-qualifier loan (also called asset depletion) uses your eligible liquid assets, such as bank, brokerage and retirement accounts, to calculate a qualifying income. The lender divides the eligible balance over a set number of months, based on its own guidelines.
This can work well for retirees, recent business sellers and investors. If your income is mostly rental income, a DSCR loan may be simpler.
Many of my self-employed clients are Iranian-American business owners who like to go over these details in Farsi. If that’s you, see my Persian mortgage broker page, or simply request a quote and we’ll talk.
Bank Statement Loan FAQ
Do I need tax returns for a bank statement loan?
Usually not. The lender uses 12 or 24 months of bank statements to calculate your income. You’ll still need to prove you’re self-employed, for example with a business license or CPA letter.
How long do I need to be self-employed?
Many lenders want about two years of self-employment history, though some accept less with a prior history in the same line of work.
Are rates higher on bank statement loans?
Usually, yes. They’re non-QM loans and carry more risk for the lender, so rates and down payments are often higher than conventional loans. Pricing depends on your credit, down payment and the lender.
Can I use business bank statements?
Yes. The lender applies an expense factor to business deposits to estimate profit. Personal statements are counted differently, so I’ll compare both.
Can I buy an investment property with a bank statement loan?
Many lenders allow it. For rentals, a DSCR loan that qualifies on the property’s rent is another option worth comparing.
Self-Employed? Let's Look at Your Numbers
Apply online or call me, and I’ll compare bank statement programs from 240+ lenders.
Hossein Nasrollahi, NMLS #2087371 · Loan Factory, Inc., NMLS #320841 · Equal Housing Opportunity