This program analyzes personal or business bank statements to calculate average monthly income. It’s ideal for borrowers with variable income streams, commission-based earnings, or significant business deductions.
Bank statement loans can be used for primary residences, second homes, and investment properties, depending on program guidelines. While interest rates and down payment requirements may be slightly higher than conventional loans, the flexibility in documentation makes this option highly valuable for self-employed borrowers.
Bank statement loans offer self-employed borrowers a practical and flexible path to home financing by focusing on actual cash flow rather than tax return net income. With adaptable underwriting, competitive loan structures, and options for primary or investment properties, bank statement financing provides a strategic solution tailored to today’s entrepreneurs.
Qualification is based on bank deposits instead of traditional income documents.
Designed specifically for entrepreneurs and business owners.
Income is averaged over 12–24 months to account for seasonal or variable earnings.
Available for primary homes, second homes, and investment properties.
May offer financing beyond standard conforming limits.
Evaluates real cash flow rather than taxable income after deductions.
Bank statement loans work differently than traditional mortgages, so it’s natural to have questions about income calculation, required documentation, down payments, and approval timelines.
Self-employed individuals, business owners, freelancers, and contractors with consistent bank deposit history.
Most programs require 12 or 24 months of personal or business bank statements.
Typically, lenders require at least two years of self-employment history.
Yes. Down payments generally start around 10% or more, depending on credit and property type.
Yes. This program can be used for both purchases and refinances.
Rates may be slightly higher than conventional loans due to flexible documentation.
