A bank statement loan is a mortgage for people whose tax returns don't tell the real story of their income — business owners, freelancers, contractors, and the self-employed. Instead of W-2s and 1040s, the lender looks at 12-24 months of your actual bank deposits to calculate what you earn. Here's everything you need to know, in plain English.
How a bank statement loan works
You provide 12 or 24 months of personal or business bank statements. The lender averages your monthly deposits — typically counting 100% of personal-account deposits or about half of business-account deposits — and that average becomes your qualifying income. No tax returns, no W-2s, no pay stubs.
Who it's for
Anyone whose write-offs shrink their taxable income below what they really earn: small-business owners, 1099 contractors, realtors, consultants, gig workers, and freelancers. If a conventional lender said your income 'doesn't qualify' despite a healthy business, this is the loan built for you.
What it costs
Rates run modestly higher than conventional — typically 0.5% to 2% more — because these loans are held by private investors rather than sold to Fannie Mae or Freddie Mac. There's no monthly PMI, down payments start around 10%, and many borrowers refinance into a conventional loan later.
Is it safe and legitimate?
Yes. Bank statement loans are fully underwritten, regulated non-QM mortgages — lenders verify your income from real bank records and confirm your ability to repay. They're nothing like the no-doc 'stated income' loans of 2008; your deposits are the documentation.
See what you qualify for in 60 seconds — free and no credit check. Use the eligibility check at the top of this page.