bank statement loans
If you’re self-employed, your tax returns rarely tell the whole story.
At Andes Mortgage, we qualify you on the income your business actually generates — using 12–24 months of bank statements instead of tax returns or W-2s. This is the solution for business owners, contractors and gig workers to finally qualify for a mortgage.
Bank statement LOAN HIGHLIGHTS
A bank statement loan is designed for anyone whose tax returns understate what they really earn — business owners, freelancers, entrepreneurs, and 1099 income earners.
No tax returns or W2s required
Qualify using 12–24 months of personal or business bank statements instead of traditional income documentation.
Flexible income documentation
Perfect for self-employed borrowers with strong cash flow, business write-offs, or variable monthly income.
Flexible Property Types
Finance primary homes, second homes, and investment properties.
Loan Amounts Up To $3M+
Our bank statement loan programs offer higher loan limits than traditional conforming mortgages.
Your income type decides the best path. We structure all three in-house — and we’ll help you pick the one that qualifies you for the most home
You are here. Qualify on 12–24 months of deposits. Best when your tax returns understate a strong-cash-flow business. You’re on the right page.
For contractors and gig earners who’d like to qualify based on their 1099 income. No tax returns required.
Newer to a business or bank statements too messy for a bank statement loan? Qualify with a CPA-prepared profit and loss for your business. No taxes or bank statements required.
Many self-employed borrowers earn a great living but show far less on their tax returns after deductions, write-offs, and depreciation. A bank statement loan takes a different approach — we look at the cash flowing through your accounts, not your taxable net income.
We review 12 or 24 months of personal or business statements, calculate your average monthly deposits, and apply a business expense factor to arrive at your qualifying income. Our default factor is 50% — and with a CPA letter, we can go as low as 10%, which means more qualifying income and more buying power.
|
Feature
|
Bank Statement Loan
|
Conventional
|
FHA
|
|---|---|---|---|
|
Tax Returns Required
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❌ No
|
✅ Yes
|
✅ Yes
|
|
Uses Bank Deposits
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✅ Yes
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❌ No
|
❌ No
|
|
Down Payment
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10-20% Minimum
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3-5%+
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3.5%
|
|
Minimum Credit Score
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600
|
620
|
580
|
|
Investment Properties
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✅ Yes
|
✅ Yes
|
❌ No
|
|
Mortgage Insurance
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❌ Never
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Yes with <20% down
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Mandatory
|
|
Best For
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Self-Employed Borrowers
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W2 Employees
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Lower Credit Scores
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Many self-employed borrowers earn a great living but show significantly less income on their tax returns due to business deductions, write-offs, depreciation, and other tax strategies.
A bank statement loan takes a different approach.
Instead of reviewing tax returns, we analyze your personal or business bank statements to determine your qualifying income. Our bank statement loan program allows 12 or 24 months of statements.
We review your recurring business related deposits and we calculate an average monthly income. To determine your qualifying income, we multiply the average deposits by a business expense factor, typically 50% as a default. However, with a CPA letter, we go down to as low as a 10% business expense factor.
This approach helps business owners, freelancers, consultants, contractors, and other self-employed professionals qualify based on the cash flow their business actually generates rather than what appears on their tax returns.
$700k
Home Value
$300k
Balance
$150k
Cash out
$300k
Income
<20 days
Closing time
Daniel came to us as a self-employed contractor who wanted to access $150,000 from his home’s equity to help fund business growth. While his business generated strong revenue, losses from another company reduced the income shown on his tax returns, making conventional financing difficult.
Using a bank statement loan, we reviewed 12 months of business bank statements showing approximately $600,000 in annual deposits and qualified him based on his business cash flow instead of taxable income.
The result was a successful cash-out refinance that closed in less than 20 days.
credit score
620+
minimum down payment
10% with ≥ 700 FICO
20% with ≥ 620 FICO
Debt-to-income ratio
Up to 49.9%
Mortgage insurance
Not Required
Occcupancy
Primary, vacation and investment
Loan limits
Up to $3 Million
You are self-employed, 1099 or freelancer
Your income on tax returns is too weak to qualify for a conventional mortgage or jumbo loan
You need to qualify based on your true business income
You have strong cash flow but significant business write-offs
A bank statement loan is a type of non-QM mortgage that allows self-employed borrowers to qualify using personal or business bank statements instead of tax returns.
Most lenders require either 12 or 24 months of bank statements depending on the loan program and borrower profile.
Yes. Bank statement loans are specifically designed for borrowers who may not qualify using traditional tax return income documentation.
The minimimum bank statement loan down payment is 10% when you have a credit score of at least 700 and the property you are buying will be your primary. For investment, the minimum down payment is 20%.
They run a little above conventional in exchange for the flexibility. We publish representative rates weekly — see current bank statement loan rates.
Start with Mortgage Match™, our free tool that explores your best paths with just a few questions. No credit scores are required. We’ll route you to the right self-employed program — or book a call and tell us your scenario.
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Licensed for consumer lending in Georgia, Florida, Texas, South Carolina, and Alabama. This page is for informational purposes only and is not a commitment to lend, an offer of credit, or a guarantee of any rate, term, or program. Loan approval, loan-to-value limits, credit-score minimums, and reserve requirements are subject to full underwriting and current lender and agency guidelines. Rates and programs are subject to change without notice. Equal Housing Lender. NMLS Consumer Access.
