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bank statement loans
Bank statement loans help self-employed borrowers qualify for a mortgage using personal or business bank statements instead of tax returns. These loans are ideal for business owners, freelancers, entrepreneurs, and 1099 income earners.
loan snapshot
Rates Updated as of June 25 2026
Bank statement LOAN HIGHLIGHTS
Bank statement loans are designed for business owners, freelancers, entrepreneurs, and 1099 income earners who may not qualify using traditional tax returnsNo 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.
|
Feature
|
Bank Statement Loan
|
Conventional
|
FHA
|
|---|---|---|---|
|
Tax Returns Required
|
❌ No
|
✅ Yes
|
✅ Yes
|
|
Uses Bank Deposits
|
✅ Yes
|
❌ No
|
❌ No
|
|
Down Payment
|
10-20% Minimum
|
3-5%+
|
3.5%
|
|
Minimum Credit Score
|
600
|
620
|
580
|
|
Investment Properties
|
✅ Yes
|
✅ Yes
|
❌ No
|
|
Mortgage Insurance
|
❌ Never
|
Yes with <20% down
|
Mandatory
|
|
Best For
|
Self-Employed Borrowers
|
W2 Employees
|
Lower Credit Scores
|
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
Bank statement LOAN FAQ
Get answers to some of the most common questions about bank statement mortgage loans for self-employed borrowers.
What is a bank statement loan?
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.
How many months of bank statements are required for a bank statement loan?
Most lenders require either 12 or 24 months of bank statements depending on the loan program and borrower profile.
How many months of bank statements are required for a bank statement loan?
Most lenders require either 12 or 24 months of bank statements depending on the loan program and borrower profile.
Can I qualify for a bank statement loan without tax returns?
Yes. Bank statement loans are specifically designed for borrowers who may not qualify using traditional tax return income documentation.
Do bank statement loans require 20% down?
No. The minimimum bank statement loan down payment is 10% when you have a credit score of at least 700.
Let’s walk through your numbers, monthly payment, and available conventional loan options so you can understand the best path forward.
770-740-4050
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info@andesmortgage.com
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Book a call and get personalized information.
Skip the wait and get started on your pre-approval asap.