🏦Bank Statement Loans

Mortgages That Work for the Self-Employed!

If you're self-employed, you know the freedom of running your own business—but that freedom can sometimes make it harder to qualify for a traditional mortgage. Between write-offs, fluctuating income, and unconventional documentation, many entrepreneurs feel stuck when it comes to home financing.

That’s where bank statement loans come in—a flexible loan solution that looks beyond the tax returns and into your real income story.

🤔 What Is a Bank Statement Loan?

A bank statement loan allows borrowers to qualify for a mortgage using personal or business bank statements—usually from the last 12 to 24 months—instead of traditional W-2s or tax returns.

These loans are specifically designed for:

• Business owners

• Freelancers

• Contractors

• 1099 earners

• Gig economy workers

Instead of relying on taxable income, lenders calculate qualifying income based on average monthly deposits, giving self-employed buyers a much-needed alternative.

📋 General Program Guidelines

Here’s a snapshot of what bank statement loans typically allow:

• ✅ Loan amounts up to $3.5 million

• ✅ Minimum FICO score of 620

• ✅ No mortgage insurance required

• ✅ As little as 10% down payment

• ✅ 6–12 months of reserves may be required, depending on the loan size

• ✅ Available for primary homes, second homes, and investment properties

• ✅ Personal or business bank statements (12 or 24 months)

✅ Pros and ❌ Cons

✅ Pros

• No tax returns or W-2s needed
  Perfect for self-employed buyers who take advantage of tax write-offs.

• No mortgage insurance (MI)
  Even with less than 20% down—this can mean significant monthly savings.

• Flexible loan sizes
  Loan amounts up to $3.5M offer options for both first homes and luxury properties.

• Down payments as low as 10%
  Competitive for non-traditional financing.

• Uses real cash flow
  Income is based on actual deposits, not what's on paper after deductions.

❌ Cons

• Higher interest rates
  These are non-QM (non-qualified mortgage) loans and generally come with slightly higher rates than conventional options.

• More detailed documentation
  Lenders will do a deep dive into bank activity, so organization matters.

• Larger reserve requirements
  You may need to show 6–12 months of reserves depending on your loan size and profile.

• Inconsistent deposits can impact qualifying
  Irregular income patterns could affect how much you can borrow.

🛠️ How I Help Buyers with Bank Statement Loans

I work closely with self-employed clients to:

• Analyze income using 12–24 months of bank statements

• Identify the best-fit program based on goals, credit, and available assets

• Walk through the process from pre-approval to closing

• Ensure you’re supported every step of the way with clear communication

If you’ve been turned down because your tax returns don’t “show enough,” don’t give up—we may just need a different approach.

🎨 Client Spotlight: Hannah’s Dream Home in Gilbert

Hannah, a talented graphic artist, launched her own design studio just 15 months ago. With steady cash flow and a growing client base, she was ready to buy—but without two years of tax returns, traditional lenders told her to wait.

Instead, we used a bank statement loan, qualifying her based on 12 months of business bank statements. No W-2s. No tax returns. Just a smart solution for a self-employed success story.

Now Hannah’s living her dream in a beautiful Gilbert home—complete with a home office and space to create.

🏡 Bottom Line

Bank statement loans open the door to homeownership for countless self-employed buyers who don’t fit inside the traditional lending box. With higher loan limits, no MI, and realistic underwriting, they can be a powerful tool when used wisely.

📲 Ready to explore your options?

Let’s connect and see if a bank statement loan is right for you. I’ll help you understand the process and make sure you feel confident every step of the way.

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