Bank Statement Loans
No Tax Returns Required
Designed for Self-Employed Borrowers
What is a Bank Statement Loan?
A Bank Statement Loan
is a Non-QM mortgage designed for self-employed borrowers who can demonstrate consistent deposits but may not have traditional tax documentation. Lenders review personal or business bank statements instead of tax returns to determine income eligibility.
Why Use a Bank Statement Mortgage Loan?
If you're self-employed or a business owner and struggling to qualify for a mortgage due to low taxable income, a Bank Statement Loan is the perfect solution. Instead of using W-2s or tax returns, lenders calculate income based on 12 or 24 months of bank statements, making it easier for entrepreneurs, freelancers, and independent contractors to secure home financing.
Traditional Mortgage Lenders
- Use 100% of personal bank statement deposits.
- Count 50% to 80% of business bank statement deposits (after expense deductions).
- Non QM Lenders analyze
12 or 24 months of bank statements to calculate
qualifying income rather than using your tax returns.
Bank Statement Loans vs. Traditional Mortgages
| Loan Feature | Bank Statement | Traditional Loan |
|---|---|---|
| Income Verification |
Bank Statements 12-24 months |
W-2s, Tax Returns |
| Best For |
Self Employed Borrowers |
W-2 Employees |
| Max Loan Amount |
Up to $3,000,000 |
Yearly Conforming Limits |
| Down Payment |
10-20% |
3-20% |
| DTI Ratio |
Up to 50% |
Max 43% |
Bank Statement Loan Details
| Bank Statement Loan Criteria | Requirement |
|---|---|
| Credit Score |
680 |
| Income Varification |
Bank Statements 12-24 months +Asset Depletion |
| Minimum Loan Amount |
$200,000 |
| Maximum Loan Amount |
$1,000,000 |
| Max LTV |
Purchase 85%, Cash Out Unlimited |
| DTI Ratio |
Up to 50% |
| Occupancy |
Primary, Second Home, or Investment Property |
| Property Types |
Single Family, Multi Family, Condos, Townhomes |
Using Bank Statements For
Mortgage Approval
Benefits of Bank Statement Loans
- No W-2s or Tax Returns Needed.
- Qualify with bank statements instead of traditional income documentation.
- Higher Loan Limits for Business Owners.
- Borrow up to $1M with flexible income calculations.
- Flexible Credit Score & DTI Requirements.
- FICO 680+ accepted.
Higher DTI allowed (up to 50%). - Investment Property Financing Available.
- Finance second homes & rental properties.
Designed for Self-Employed Borrowers
Unlike traditional loans, Bank Statement Mortgages cater to:
- Small business owners
- Freelancers & independent contractors
- Real estate investors
- Commission-based earners
Who Might Qualify for a Bank Statement Loan?
- Self-employed for at least 2 years
- Minimum FICO Score: 680+
- Reserves required: 3-12 months (varies by loan amount)
- Max Loan-to-Value (LTV): 85% for purchase and Unlimited for cash-out refinance
How to Qualify for a Bank Statement Loan
Step 1: Gather Your Bank Statements
Provide 12 or 24 months of personal/business bank statements to verify income consistency.
Step 2: Check Your Credit & Reserves
Aim for 680+ credit score
Maintain 3-12 months of reserves
Step 3: Choose the Right Loan Program
Select 12-month or 24-month Bank statement options based on income strength.
Step 4: Get Pre-Approved
Apply to see how much you qualify for!
Get the mortgage you deserve
- No tax returns needed!
- Flexible credit & income options
- Fast pre-approvals
Can I Use Personal & Business Bank Statements?
Yes! Personal bank statements count 100% of deposits, while business bank statements account for 50-80% after expense deductions. A common sense approach is used when looking at bank statements which allows for more flexible allowable income.
What Are the Reserve Requirements?
Reserve requirements vary:
- $200K - $500K loan: 3 months reserves
- $500K - $1M loan: 6 months reserves
- $1M+ loan: 12 months reserves
Can I Qualify for an Investment Property?
Yes! Aspire X Bank Statement Loans allow financing for:
- Primary residences
- Vacation homes
- Investment properties
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
Need a Conventional Lender?
Check Out These Other Resources
Frequently Asked Bank Statement Loan Questions-FAQ
Can I Get a Bank Statement Loan with a Low Credit Score?
Most lenders require a minimum 680 FICO score for a Bank Statement Loan. However, some programs allow lower scores with compensating factors like higher reserves or a larger down payment.
How Many Months of Bank Statements Do I Need to Qualify?
Lenders typically require 12 or 24 months of consecutive personal or business bank statements to verify consistent income deposits. The longer the statement period, the stronger your application.
What Types of Properties Can I Buy with a Bank Statement Loan?
Bank Statement Loans allow financing for:
Primary residences
Second homes & vacation properties
Investment properties (rental homes, multi-units, condos)
Do I Need to Own a Business to Qualify for a Bank Statement Mortgage?
No, but you must be self-employed for at least 2 years. This includes freelancers, gig workers, and independent contractors who earn 1099 income or receive regular business deposits.
Can I Use Multiple Bank Accounts to Qualify?
Yes! Lenders allow income verification from multiple business and personal bank accounts. If using business accounts, an expense factor (typically 50-80%) will be applied to determine qualifying income.
How Much Can I Borrow with a Bank Statement Loan?
Bank Statement Loans typically allow:
Up to $1 million for qualified borrowers
Loan-to-Value (LTV) up to 85% for purchases
unlimited for cash-out refinances
Are There Reserve Requirements for Bank Statement Loans?
Yes, most lenders require 3 to 12 months of reserves, depending on the loan amount. Larger loans or investment properties may require higher reserves to qualify.
Can I Get a Bank Statement Loan for an Investment Property?
Yes! Bank Statement Loans allow financing for investment properties, including single-family rentals, condos, and multi-unit properties. These loans are ideal for real estate investors who have high income but low reported taxable income.
What Interest Rates Can I Expect on a Bank Statement Loan?
Rates vary based on credit score, loan amount, and LTV. Typically, Bank Statement Loan rates are slightly higher than traditional loans due to the flexible income verification. Borrowers with higher FICO scores and larger down payments receive better rates.
How Long Does It Take to Close a Bank Statement Loan?
Most Bank Statement Loans close in 21-30 days, depending on:
-Bank statement verification time
-Appraisal & underwriting
-Lender’s processing speed
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
Need a Conventional Lender?
Check Out These Other Resources
Explore Your Bank Statement Program Lending Options
we specialize in connecting you with a licensed non-QM loan products expert to meet your needs. Whether you're looking for a Bank Statement Loan, DSCR Loan or a P&L only Loan, we’re here to help! We can connect with the right lender for the loan you need.