Bank Statement Loans for Self-Employed Borrowers

Detailed Information

Bank statement loans are a Non-QM program that allows self-employed borrowers to qualify for a mortgage using 12-24 months of bank deposits instead of tax returns. This is ideal for business owners, freelancers, and contractors whose tax returns show lower income due to business deductions. Lenders typically calculate qualifying income by applying a 50% expense ratio to business bank deposits or using personal bank deposits directly. Most programs require a minimum credit score of 620 and a down payment of 10-20%.

Loan Programs

• FHA Loans — 3.5% down payment, credit scores from 580, ideal for first-time home buyers
• VA Loans — Zero down payment for veterans, active-duty military, and surviving spouses
• Conventional Loans — Fannie Mae and Freddie Mac, financing up to 97%, credit from 620
• Jumbo Loans — For properties exceeding 2026 conforming loan limits ($832,750 most counties)
• Non-QM Loans — Bank statement loans for self-employed, 1099 income, DSCR, and ITIN loans

Educational Guides

• FHA Down Payment Guide
• VA Funding Fee Guide
• Bank Statement Loans Guide
• ITIN Loans Guide
• 10% Down Bank Statement Loans
• FHA vs Conventional Loans