Bank Statement Loans for the Self-Employed

If you own a business, you already know the problem: you write down every legal expense to lower your tax bill, and then a traditional lender uses that same return to disqualify you for a mortgage. Bank statement loans were built to solve exactly that.

Instead of W-2s and tax returns, the lender averages your business or personal deposits over the last 12 or 24 months and uses that as your qualifying income. Real money in, real income — no Schedule C math.

How qualifying income is calculated

Most lenders take total deposits, subtract obvious transfers, and apply an expense factor — typically 50% on personal accounts and 25–50% on business accounts — to arrive at qualifying income.

• Personal statements: roughly 100% of deposits count, minus transfers.
• Business statements: 50–75% of deposits typically count after the expense factor.
• CPA letter: some programs let your CPA certify the expense ratio, which can boost qualifying income.

What you need to qualify

• Self-employed for 2+ years in the same business.
• Credit: 660+ minimum, 700+ for best pricing.
• Statements: 12 or 24 months of consecutive bank statements (program dependent).
• LTV: Up to 90% on purchase with strong credit, 80% on cash-out.
• Reserves: 3–12 months PITIA, scaled to loan size.

Where bank statement loans win

• You file Schedule C and write off heavily — your tax return shows a fraction of your actual cash flow.
• You own multiple businesses with messy K-1s.
• You're a 1099 contractor with strong deposits but no W-2 history.
• Your accountant told you not to amend returns just to qualify.

What it costs

Bank statement programs price roughly 0.5% – 1.0% above conventional for the same credit profile. We shop the entire wholesale Non-QM market to land the lowest rate that fits your scenario.