Loan program · Specialty
Bank Statement Mortgages
Self employed borrowers often write off significant business expenses, which lowers the net income used on a traditional loan. Bank statement programs qualify income using deposits over a 12 or 24 month period with an expense factor applied, instead of using tax return net income.
Who it is designed for
- Business owners with strong deposits but heavy write offs
- 1099 contractors and commission earners
- Self employed borrowers whose tax returns understate cash flow
- Self employed homeowners refinancing or taking cash out
Eligible occupancy types
- Primary residence
- Second home
- Investment property
Down payment or equity
Down payment requirements are set by the investor and are generally higher than agency financing, scaled by credit score and loan amount.
Major benefits
- Income calculated from deposits rather than net tax return income
- 12 or 24 month options depending on the program
- Purchase, rate and term, and cash out structures available
Important considerations
- Pricing is typically higher than conventional financing
- Deposits must be consistent and traceable to the business
- Transfers between accounts and non business deposits are usually excluded
- Business ownership seasoning is required
How qualification generally works
- 12 or 24 months of business or personal bank statements
- Proof of self employment such as a business license or CPA letter
- Credit and reserves reviewed under the investor's tiers
- Appraisal on the subject property
Documents commonly requested
- 12 or 24 consecutive months of bank statements for the qualifying account
- Business license, operating agreement or CPA letter confirming ownership and time in business
- Photo ID and Social Security number
- Mortgage, tax and insurance details on real estate owned
Frequently Asked Questions
Related programs and next steps
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Learn moreConsidering bank statement mortgages?
We will review your documents, compare the realistic options, and give you a written preapproval you can use with confidence. Nothing on this page is a commitment to lend.