Program highlights
- Owner occupied, 2nd homes and non-owner occupied
- 12 or 24 month bank statements
- Asset utilization (no DTI, lite doc)
- Asset depletion and 1099
- P&L only / written VOE only / 60 month asset utilization / 1099 only
- 1 year self employed
- Interest only: 30 and 40 year IO
- Cryptocurrency
What is a bank statement loan?
A bank statement loan is a Non-QM mortgage that qualifies you using deposits into your bank accounts instead of the income on your tax returns. Non-QM means the loan falls outside the standard "qualified mortgage" rules that agency loans follow, which gives underwriters room to look at income the way business owners actually earn it.
How it works
Most self-employed borrowers write off legitimate business expenses, which lowers the taxable income on their returns. That is good for taxes and bad for a traditional mortgage application. Non-QM programs solve that problem with several ways to document income:
- 12 or 24 month bank statements: personal or business statements are reviewed, and qualifying income is calculated from deposits, typically using an expense factor for business accounts.
- P&L only: a profit and loss statement, often prepared by a CPA or tax preparer, stands in for tax returns.
- 1099 only: contractors and gig workers qualify using 1099 forms.
- Written VOE only: income verified by an employer's written verification, without tax returns.
- Asset depletion: liquid assets are converted into a monthly qualifying income.
- Asset utilization: a lite doc option with no debt-to-income calculation, where qualifying is based on assets, including a 60 month asset utilization approach.
We accept as little as 1 year of self-employment, compared with the two years most conventional loans expect. Cryptocurrency holdings can also be considered as an asset, subject to guidelines. Interest-only options with 30 and 40 year terms are available for borrowers who want a lower required payment in the early years.
These programs work for owner-occupied homes, second homes, and non-owner-occupied investment properties.
What to expect
Non-QM loans typically require a larger down payment than agency loans and usually carry higher pricing, because the documentation is different. Credit, reserves, and loan to value all affect the terms. For some borrowers, a conventional loan using tax returns still works and costs less, so we check that first.
Who it fits
These programs fit business owners, real estate agents, consultants, contractors, restaurant owners, and anyone whose tax return does not reflect what they can comfortably afford. They also fit retirees and high-net-worth buyers who have assets but not a paycheck.
What you need to apply
- 12 or 24 months of personal or business bank statements, or
- A P&L statement, 1099s, or a written VOE, depending on the option
- Proof of business ownership and time in business, such as a license or CPA letter
- Asset statements for down payment and reserves
- A valid ID
How we help in Austin
Austin has one of the most entrepreneurial economies in the country, full of founders, tech contractors, trades businesses, and real estate professionals. We sit down with your statements, pick the documentation path that shows your income most accurately, and give you a clear answer on price range before you shop. We offer these programs in all 12 of our licensed states.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
Self-Employed and Bank Statement Loans: common questions
How does a bank statement loan calculate my income?
We review 12 or 24 months of personal or business bank statements and total the qualifying deposits. For business accounts, an expense factor is typically applied to estimate net income, and a CPA letter or P&L can sometimes support a different figure. Transfers between your own accounts and one-time deposits usually do not count. The average becomes your monthly qualifying income.
How long do I need to be self-employed?
Our Non-QM programs allow as little as 1 year of self-employment. Most conventional loans expect two years of self-employment history shown on tax returns. If you recently left a W-2 job to work for yourself in the same field, tell us, because your prior experience can help support the file.
Can I qualify using assets instead of income?
Yes. With asset depletion, your eligible liquid assets are converted into a monthly qualifying income. With asset utilization, a lite doc option, there is no debt-to-income calculation, and qualifying is based on assets, including a 60 month asset utilization approach. These work well for retirees, investors, and people between businesses who hold significant savings or investments.
Do bank statement loans need a bigger down payment?
Usually, yes. Non-QM loans typically require more down than conventional or FHA loans, and the exact amount depends on your credit score, the documentation type, property type, and loan size. Pricing is typically higher as well. We check whether a conventional loan using your tax returns could work first, since it may cost less.
Can I use a bank statement loan for an investment property?
Yes. Our Non-QM programs cover owner-occupied homes, second homes, and non-owner-occupied investment properties. For rentals, a DSCR loan that qualifies on the property's rent instead of your personal income is often simpler. We compare both approaches so you can choose the one with the best combination of down payment, documentation, and terms.