No Tax Returns Required
A Bank Statement Loan
is a Non-QM mortgage designed for self-employed borrowers who can demonstrate consistent deposits but may not have traditional tax documentation. Lenders review personal or business bank statements instead of tax returns to determine income eligibility.
Why Use a Bank Statement Mortgage Loan?
If you're self-employed or a business owner and struggling to qualify for a mortgage due to low taxable income, a Bank Statement Loan is the perfect solution. Instead of using W-2s or tax returns, lenders calculate income based on 12 or 24 months of bank statements, making it easier for entrepreneurs, freelancers, and independent contractors to secure home financing.
Traditional Mortgage Lenders
Bank Statement Loans vs. Traditional Mortgages
Loan Feature | Bank Statement | Traditional Loan |
---|---|---|
Income Verification |
Bank Statements 12-24 months |
W-2s, Tax Returns |
Best For |
Self Employed Borrowers |
W-2 Employees |
Max Loan Amount |
Up to $3,000,000 |
Yearly Conforming Limits |
Down Payment |
10-20% |
3-20% |
DTI Ratio |
Up to 50% |
Max 43% |
Bank Statement Loan Details
Bank Statement Loan Criteria | Requirement |
---|---|
Credit Score |
680 |
Income Varification |
Bank Statements 12-24 months +Asset Depletion |
Minimum Loan Amount |
$200,000 |
Maximum Loan Amount |
$1,000,000 |
Max LTV |
Purchase 85%, Cash Out Unlimited |
DTI Ratio |
Up to 50% |
Occupancy |
Primary, Second Home, or Investment Property |
Property Types |
Single Family, Multi Family, Condos, Townhomes |
Benefits of Bank Statement Loans
Designed for Self-Employed Borrowers
Unlike traditional loans, Bank Statement Mortgages cater to:
Who Might Qualify for a Bank Statement Loan?
Step 1: Gather Your Bank Statements
Provide 12 or 24 months of personal/business bank statements to verify income consistency.
Step 2: Check Your Credit & Reserves
Aim for 680+ credit score
Maintain 3-12 months of reserves
Step 3: Choose the Right Loan Program
Select 12-month or 24-month Bank statement options based on income strength.
Step 4: Get Pre-Approved
Apply to see how much you qualify for!
Get the mortgage you deserve
Can I Use Personal & Business Bank Statements?
Yes! Personal bank statements count 100% of deposits, while business bank statements account for 50-80% after expense deductions. A common sense approach is used when looking at bank statements which allows for more flexible allowable income.
What Are the Reserve Requirements?
Reserve requirements vary:
Can I Qualify for an Investment Property?
Yes! Aspire X Bank Statement Loans allow financing for:
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
Need a Conventional Lender?
Check Out These Other Resources
Most lenders require a minimum 680 FICO score for a Bank Statement Loan. However, some programs allow lower scores with compensating factors like higher reserves or a larger down payment.
Lenders typically require 12 or 24 months of consecutive personal or business bank statements to verify consistent income deposits. The longer the statement period, the stronger your application.
Bank Statement Loans allow financing for:
Primary residences
Second homes & vacation properties
Investment properties (rental homes, multi-units, condos)
No, but you must be self-employed for at least 2 years. This includes freelancers, gig workers, and independent contractors who earn 1099 income or receive regular business deposits.
Yes! Lenders allow income verification from multiple business and personal bank accounts. If using business accounts, an expense factor (typically 50-80%) will be applied to determine qualifying income.
Bank Statement Loans typically allow:
Up to $1 million for qualified borrowers
Loan-to-Value (LTV) up to 85% for purchases
unlimited for cash-out refinances
Yes, most lenders require 3 to 12 months of reserves, depending on the loan amount. Larger loans or investment properties may require higher reserves to qualify.
Yes! Bank Statement Loans allow financing for investment properties, including single-family rentals, condos, and multi-unit properties. These loans are ideal for real estate investors who have high income but low reported taxable income.
Rates vary based on credit score, loan amount, and LTV. Typically, Bank Statement Loan rates are slightly higher than traditional loans due to the flexible income verification. Borrowers with higher FICO scores and larger down payments receive better rates.
Most Bank Statement Loans close in 21-30 days, depending on:
-Bank statement verification time
-Appraisal & underwriting
-Lender’s processing speed
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
Need a Conventional Lender?
Check Out These Other Resources
we specialize in connecting you with a licensed non-QM loan products expert to meet your needs. Whether you're looking for a Bank Statement Loan, DSCR Loan or a P&L only Loan, we’re here to help! We can connect with the right lender for the loan you need.
8921 West Sahara Avenue, Las Vegas, Nevada 89117, United States
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8921 West Sahara Avenue, Las Vegas, Nevada 89117, United States
Informational and Educational Resources Provided by West Coast Mortgage Group NMLS 5084
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