Bank Statement Loans for Self Employed 2024

Bank Statement Loans 2026

Bank statement loans were created for self employed individuals who cannot document their income using tax returns. Borrowers can qualify for a mortgage using bank statements detailing average monthly deposits as a basis to determine their income.

A bank statement loan is a mortgage designed for self-employed borrowers who qualify using 12–24 months of personal or business bank statements instead of W2’s or tax returns. Lenders calculate your income based on deposits, making it easier to get approved if tax write-offs reduce your reported income.

Getting approved for a mortgage is much easier for self employed borrowers now that bank statement loans are available in 2026. We will walk you through everything you need to know about bank statement loans and then one of our loan officers will help with your pre-approval.

See if you qualify and to check on bank statement mortgage rates

What is a Bank Statement Loan?

We will use a percentage of the average monthly deposits as the monthly income on the loan application to qualify for the mortgage. Bank statement loans are the most common mortgage used by self employed borrowers today.

In the past, self employed borrowers were able to find stated income loans or no doc loans easily. However, after the mortgage crisis in 2008, these mortgage programs to help self employed borrowers disappeared. They had to qualify on their net income referenced on the tax returns . When taking all of the legal tax deductions into consideration, it became nearly impossible to qualify for a mortgage.

Now, bank statement loans for self employed are here and they are a safer and more realistic loan program that is good for both the borrowers and lenders. This is great news for self employed individuals who are looking to finance their dream home.

We have helped thousands of self employed individuals to purchase or refinance their homes with a bank statement loan. (DBA United Mortgage Corp – NMLS #1330)

Bank Statement Loan Program Information

With a bank statement loan you are going to qualify based upon the 12-24 month bank deposits into your personal and/or business accounts. We want to see a consistent flow of money sufficient to qualify you for the bank statement mortgage.

Advantages of Bank Statement Loans

Bank statement loans for self employed help business owners and 1099 contractors to qualify for a mortgage
Bank statement lenders allow you to qualify by supplying them with your bank statements only
Mortgage rates are only slightly higher than conventional loans
LTV up to 90%
DTI up to 50%
Low credit scores are permitted
Recent bankruptcy or foreclosures are permitted
NO PMI or Mortgage Insurance
Very competitive rates

For many, a bank statement loan is the only option. You can easily check with us to determine how much you can qualify for without a hard credit pull. Contact us here.

Bank Statement Loan Pros and Cons

Pros

Helps self employed borrowers to qualify for a mortgage without using tax returns to prove income
Can be done in some instances with only 10% down
Bank statement mortgage rates are just slightly higher than conventional rates
Up to 50% DTI – Debt to income depending upon your scenario
Typically no pre-payment penalties
Available in all 50 states

Cons

You need to be self employed for a minimum of 2 years
If your credit score is extremely low, it may result in a higher down payment
Rates are slightly higher than conventional but not much more
Not all lenders offer bank statement loans
Not available in government loans such as FHA, VA or USDA

Bank Statement Loan Requirements

You must be self employed – which means you have to prove it by providing a letter from your accountant verifying that you have been in business for at least two years. You may also have to provide a business license if applicable. The bank statement underwriter may also accept a business listing, website address, etc.

A non-self employed co-borrower (someone with W2 earnings) may also be added to the loan as well as their income. There is no way around the self employed requirement but 1099 borrowers can qualify as well.

Down Payment – Some loan scenarios may allow as little as 5% down but others will require up to 25% down. Sometimes, it is also determined by your credit score. If it drops below a particular threshold, then we may require a larger down payment.

It is critical to contact us early in the process to determine whether more is needed for your down payment. The good news is that gift funds from a relative are permitted and can be used towards the down payment.

Credit Scores – We can offer programs for individuals with credit scores below 600 and maybe as low as a 550 FICO score. Keep in mind that your down payment requirement may increase and it is possible that your rate will as well.

We suggest speaking with us to find out what your personal scenario is.

Bank Statement Home Loan Requirements – We will require you to supply 12-24 months’ worth of bank statements to use as income verification. For personal bank accounts, we may use 100% of the average. For business accounts, 50% of the average monthly deposits is typical. We can combine them both and the ability to use both business and personal accounts is a huge benefit.

Example

Personal Account – 24 months’ deposits with a total of $150,000 deposited Divided by 24 = $6,250 monthly income
Business Account – 24 month’s deposits with a total of $150,000 deposited Divided by 24 = $6,250 but will use 50% or $3,125 monthly income

*The bank statement loan underwriters will take this income figure and will run it through their underwriting model to determine whether you qualify.

Assets – Your assets must be fully verified. This includes bank statements and any other assets that you would provide for a conventional loan. The more assets you can provide during the qualification process, the better chance you have to being approved for a bank statement loan. Additional assets also help those who have low credit scores.

Property Types – Single family primary residence, Second home, multi family, and investment

Find out now if you qualify and to get a Bank Statement Loan rate quote

Bank Statement Mortgage Lenders

Bank statement loans are not Fannie Mae, Freddie Mac, or government approved loans. The lenders who offer bank statement loans are taking on additional risk when originating these loans because the traditional qualification requirements required for a Fannie Mae approved loan are bypassed. They are solely using the funds deposited into the accounts as a basis for approval and not considering all of the expenses.

The lenders (often called portfolio lenders or Non-QM lenders) will keep these loans in their own portfolios or will sell them to investors. The appetite for the additional risk by both the lender and the investors often will have a significant impact on the down payment requirements and the rates.

Some of the best lenders who offer bank statement loans are wholesale lenders who do not loan direct to consumer. They utilize a broker network which means working through a broker may likely be your best option.

Not all wholesale lenders offer the bank statement loan in the same way. Some will require a larger down payment, more bank statements, or may have another requirement that may be a fit for you.

We can offer you some of the best terms to help purchase or refinance your home.

Complete this Request Quote Form to See if You Qualify

Bank Statement Loan Interest Rates

Bank statement loan interest rates are typically 1-3% higher than traditional mortgage rates due to the increased risk, but rates vary based on factors like credit score, loan amount, and financial profile.

The bank statement mortgage rates are very competitive when you consider there is less documentation being requested. The rates will vary based upon your credit score, down payment amount, and whether you have a recent bankruptcy (or other credit event), and your average monthly bank deposits.

The difference in rates for a bank statement loan vs a conventional loan is due to lenders taking on additional risk with borrowers who cannot qualify using their tax returns. Rates for bank statement loans are not tied to what is happening in the market with conventional mortgage rates which is why you could see conventional rates falling while rates for bank statement loans could be rising.

One Month Bank Statement Loan Program

The one month bank statement home loan program only requires one bank statement as the name would indicate. It is a no income documentation type of loan for self-employed borrowers. The income is stated on the loan application but not verified.

The deposits into the personal bank statements are not critical. What we will look at is the bank statement activity. For example, if the income stated on the bank statement loan application is $25,000 per month, but the activity or transactions on that statement looks like the borrower is living a very simple life, then the loan may not get approved.

Requirements for the One Month Bank Statement Loan Program

The home must be owner occupied
Borrower must have good credit
The bank statement provided must be perfect with no negatives
A large balance in the accounts is not required but will help

If a one month bank statement mortgage loan is something you may be interested in, then contact us here to learn more.

Qualifying for a Bank Statement Loan

The quaifications to get appropved for a bank statement loan are different than a conventional or FHA loan. This guide will provide you with a basic understanding. However, we recommend speaking with one of our loan officers to provide you with specifics based upon your credit scores, down payment, and other factors

Credit Score Requirements – We can help with credit scores below 600, however credit scores are a key factor in determining what the down payment will be and also your interest rate.

Down Payment Requirements – With the best credit scores, the down payment for a bank statement loan starts at only 10%. The lower the credit scores, the larger the down payment will be.

Interest Rates – The interest rates for bank statement loans will be roughly 2% or more than what you would receive for a conventional loan. Individuals with the highest credit scores and larger down payment will receive the best rates.

Bank Statements – You may be required to provide anywhere from 12-24 months of bank statements. The more you can provide with high deposits, the move favorable your application will be for the underwriters.

Process Timeline – The most important part of the process is for you to complete the application and provide all of the required documents quickly. Once the application is complete and all documents are received, then your application can be processed and underwritten. Your loan should close within 30 days from the point when your loan is submitted.

Bank Statement Loan Related Questions

Do I have to be self employed to get a bank statement loan?
At least one borrower on the loan must be self employed for a minimum of two years. There can be a second borrower that is a W2 wage earner.

How to bank statement lenders verify that you are self employed?
We will ask for your business license if applicable, they will look for a business listing online, your website and also a written letter from your accountant verifying that you have been in business for a minimum of 2 years.

Does the home have to be my primary residence?
We will finance your primary residence, a vacation home or an investment property too. Up to 4 unit properties and it can also be a condo. However, the down payment requirements may be different for investment properties.

Can I qualify for a bank statement loan without 24 month’s bank statements?
You may still be able to qualify using just 12 months or if you have other compensating factors in your favor. The type of bank account you have may also dictate whether 12 months of statements can be used.

Can I qualify for a bank statement loan with bad credit?
There are lenders who will still work with you even with low credit scores. Many individuals have been able to get a bank statement loan with credit scores as low as 500.

What is the maximum DTI ratio (Debt to Equity) requirement?
We will go up to a 50% DTI or more. So, fill out the form to have someone contact you to see whether you qualify.

Can I get a bank statement loan if I am retired? You may still qualify if you are receiving deposits. There are plenty of options for retired individuals.

Why do mortgage lenders need bank statements?
We need to verify whether you have the assets needed to close the loan and reserves for the next few months’ payments. In the case of a bank statement loan, we want to see that you have a steady flow of money coming in because we are going to use that flow to qualify you for the loan.

Do one month bank statement loans exist?
One month bank statement loans are available but the terms are not as favorable. You may see higher down payments, higher interest rates, less forgiving on your credit history and limited availability.

Are bank statement loans non QM loans? Bank statement loans are considered to be non QM or Non-Qualified because they do not meet the qualifications of a conventional mortgage.

Where can I find a bank statement loan? Bank statement loans are available in all 50 states. Not all lenders or banks offer them. We can help you anywhere in the US.

Who are some of the lenders that offer bank statement loans? Some of the bank statement mortgage lenders are wholesale lenders that only offer loans through mortgage brokers and are not direct to consumer. We can help you if you are looking for a lender.

Still have questions? Contact us for a free consultation!

For company and MLO licensing information go to: www.nmlsconsumeraccess.org (NMLS #1330)

We are able to help you to find a bank statement loan in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming.