Bank Statement Loans
For self-employed borrowers, tax returns don't always tell the whole story. We qualify you based on your real cash flow.
How do Bank Statement loans work for self-employed borrowers?
Bank Statement loans allow you to qualify for a mortgage using the average monthly deposits into your bank accounts over the last 12-24 months, rather than the net income shown on your tax returns.
Expert Interpretation
This is the #1 tool for business owners who have significant legal tax write-offs. By looking at your gross revenue instead of your taxable income, we can often qualify you for 2x to 3x more house than a traditional bank.
Decision Matrix
Important Nuance
If your tax returns show enough income to qualify for a Conventional loan, you should always go that route first. Conventional loans have lower interest rates and lower down payment requirements (3-5% vs 10-20% for bank statements).
No Tax Returns
We use your deposits, not your net income after deductions.
Business or Personal
We can use 12 or 24 months of business or personal statements.
High Loan Limits
Loans available up to $3M+ for qualified self-employed borrowers.
The Self-Employed Solution
The Common Problem
"My CPA did a great job with my deductions, but now my bank says I don't earn enough for a mortgage. What gives?"
Short Answer: Banks typically look at 'Net Income' on tax returns. Bank Statement loans look at 'Gross Deposits.' This allows us to use your real revenue to qualify you.
Decision Framework
- Review the last 12 months of deposits.
- Calculate the average monthly revenue.
- Apply an expense factor (usually 50% or based on a P&L).
- Use that figure as your qualifying monthly income.
Expert Opinion
If you have a business with high overhead but strong cash flow, Bank Statement loans are your best friend. You don't have to choose between saving on taxes and buying a home.