Bank Statement Loans for Entrepreneurs
Tax write-offs shouldn't stop you from buying a home. Qualify for a mortgage using 12 to 24 months of personal or business bank statements instead of tax returns.
What is a Bank Statement Loan?
Traditional mortgages require W-2s and tax returns. But if you're a business owner, freelancer, or independent contractor, you likely take advantage of tax write-offs to minimize your tax liability. While this is smart for business, it reduces your "net income" on paper, making it hard to qualify for a standard mortgage.
A Bank Statement Loan (also known as a Non-QM loan) solves this problem by using your actual cash flow to prove income. Lenders review 12 to 24 months of your business or personal bank statements, calculating your income based on total deposits minus standard business expenses.
- No tax returns required (No 1040s or W-2s)
- Loans up to $3 Million
- Up to 90% LTV (Loan-to-Value) available
- Perfect for freelancers, gig workers, and business owners
Who is this for?
Small Business Owners
LLC owners, S-Corps, and sole proprietors with high tax deductions.
1099 Contractors
Independent contractors, realtors, consultants, and gig economy workers.
High Net Worth Individuals
Borrowers with significant liquid assets or complex income structures.
How We Calculate Your Income
We look at your actual cash flow, not your taxable income. The process depends on whether you use personal or business bank statements.
Personal Bank Statements
If you transfer your business income to a personal account, we can use 12 to 24 months of those statements.
- 100% of eligible deposits are counted
- No standard expense factor applied
- Must show business ownership
Business Bank Statements
If you run everything through a business account, we review 12 to 24 months of business statements.
- Total eligible deposits are calculated
- A standard expense factor (usually 50%) is applied
- CPA letter may be used for custom expense factors
Basic Requirements
Credit Score
Minimum 600 FICO score (higher score = better rates).
Down Payment
As low as 10% down for primary residences.
Self-Employed
Must be self-employed for at least 2 years.
Reserves
Usually requires 3-6 months of mortgage payments in reserve.
Step 1 of 4
What is the loan purpose?
Select your primary goal.
Ready to take the first step?
Request a free consultation. We'll analyze your situation and offer the best financing options.
Locations
111 Buck Rd, Unit 500, Suite 1
Huntingdon Valley, PA 19006
Our Office
111 Buck Rd, Unit 500, Suite 1 · Huntingdon Valley, PA 19006