Who It Is For
Business owners write off expenses, and that is smart tax planning. It can also make a standard mortgage hard to get. Bank statement loans were built for that problem.
- Self-employed business owners
- Independent contractors and freelancers
- Real estate agents and other commission earners
- Owners with strong deposits but low taxable income
How It Works
Instead of tax returns, the lender reviews your personal or business bank statements over a period of months to estimate your income. Each lender has its own method for counting deposits and business expenses.
We are self-employed specialists, and we know which wholesale lenders treat your type of business fairly. One lender may count your income very differently from another.
Bank statement files take careful organizing. Our in-house processor works with you directly on the statements and letters, so nothing gets lost with a company out of state.
What You Need to Qualify
- Self-employment history the lender can verify
- Personal or business bank statements covering the required period
- A credit history the lender can review
- A down payment and reserves, as required by the lender
- Requirements vary by lender, and we will tell you exactly where you stand
Documents You Will Likely Need
- Personal or business bank statements for the period the lender requires
- Business license or letter from your CPA confirming self-employment
- Year to date profit and loss statement, if requested
- Explanation of any large or unusual deposits
- Signed sales contract, including all riders
Common Questions
Do I need tax returns for a bank statement loan?
Usually not to qualify on income. The lender uses your bank statements instead. You may still need to show that your business exists and how long you have run it.
Personal or business bank statements, which is better?
It depends on how your money moves. Some borrowers qualify better on business statements, others on personal. We will look at both and pick the approach that represents your income most fairly.
Are bank statement loans more expensive than conventional loans?
They are a different kind of loan, so pricing and terms are usually different. We shop several lenders and will show you the full picture so you can decide whether it makes sense.
General information only, not an offer to lend. Requirements vary by lender and program, and all loans are subject to credit approval, income verification, and property appraisal.