If you're self-employed, you already know the frustration: your business is thriving, but your tax returns show a fraction of your actual income because of legitimate deductions. Traditional lenders look at your adjusted gross income, which often doesn't reflect your true earning power.
Bank statement loans solve this problem by using your bank deposits — not your tax returns — to verify income.
How Bank Statement Loans Work
Instead of W-2s and tax returns, you provide 12 or 24 months of personal or business bank statements. The lender calculates your qualifying income based on your average monthly deposits, typically applying an expense factor (usually 50% for business accounts) to estimate net income.
For example, if your business account shows average monthly deposits of $20,000 and the lender applies a 50% expense factor, your qualifying income would be $10,000 per month or $120,000 annually.
Qualification Requirements
Bank statement loans are non-QM (non-qualified mortgage) products, which means they don't follow the standard conventional lending guidelines. Typical requirements include:
- Credit score: 620-660 minimum (varies by lender)
- Down payment: 10-20% depending on loan amount and credit score
- Bank statements: 12 or 24 months of consecutive statements
- Self-employment: Most programs require at least 2 years in the same business
- Business documentation: Business license or CPA letter confirming self-employment
Who Benefits Most?
Bank statement loans are designed for business owners, freelancers, consultants, gig workers, and anyone whose tax returns understate their actual income. Common borrowers include restaurant owners, contractors, real estate agents, e-commerce sellers, and independent professionals.
The Broker Advantage
As a mortgage broker, SiFi Lending has access to multiple non-QM lenders offering bank statement programs. Terms, rates, and qualification criteria vary significantly between lenders. We compare options across our lender network to find the program that works best for your specific financial situation.
Ready to explore bank statement loan options? Learn more about our bank statement loan program or get a personalized quote — no tax returns required to start the conversation.
Simonich Financial, Inc. dba SiFi Lending | NMLS #2563307 | Licensed Mortgage Broker | Equal Housing Opportunity. SiFi Lending arranges financing through third-party lenders and does not make direct loans. This article is for informational purposes only and does not constitute a commitment to lend or a guarantee of any specific terms. All loan programs are subject to borrower qualification, credit approval, and property eligibility.