Bank Statement loans
An income review path for some self-employed borrowers.
How it works
A bank statement loan uses eligible deposits from personal or business accounts to estimate qualifying income. It can help when tax-return income does not reflect current business cash flow. The lender still reviews repayment ability and the complete loan file.
From first check to loan choice
- 1
Gather statements
A lender may request 12 or 24 months of consecutive personal or business statements.
- 2
Review eligible deposits
Transfers, loans, and other non-income deposits may need explanation or exclusion.
- 3
Apply the expense method
For business accounts, the lender accounts for expenses before deciding qualifying income.
What affects your decision
Deposits are not income dollar for dollar
For example, $10,000 in monthly business deposits does not automatically mean $10,000 in qualifying income.
Compare with conventional
If tax returns support a conventional loan, compare both paths before choosing a bank statement program.
Program variation
Down payment, rate, reserves, property use, and statement rules differ by lender.
Prepare for a conversation
Documents to have ready
Complete bank statements, business history or license, identification, asset records, and property details. Additional business records may be requested.
Ask this question
Which deposits count, what expense factor applies, and how does the total cost compare with conventional financing?
This page is general education. Program terms, rates, fees, and eligibility depend on the lender and your application.
Compare the whole cost
Ask for a personalized estimate showing the rate, APR, total monthly payment, cash to close, and fees. Then compare the options side by side.
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