Bank Statement Loan
A bank statement loan is a mortgage designed for self-employed borrowers, business owners, and independent contractors who may not have traditional income documentation. Instead of tax returns or W-2s, lenders verify income through personal or business bank statements, making it easier to secure financing for a primary home, second home, or investment property.
Who Can Qualify?
- Self-employed individuals with at least 12-24 months of bank statements
- Business owners and freelancers with inconsistent or 1099-based income
- Borrowers who prefer no tax returns or W-2s for income verification
- Investors looking to finance primary residences, vacation homes, or rental properties
- Applicants with strong cash flow but complex tax write-offs
Benefits of A Bank Statement Loan
Bank statement loans provide an alternative path to mortgage financing for those who don’t meet conventional loan requirements.
Frequently Asked Questions About Bank Statement Loans
What is a bank statement loan?
A bank statement loan is a mortgage that qualifies borrowers based on personal or business bank statement deposits instead of tax returns, W-2s, or pay stubs.
Who can benefit from a bank statement loan?
Self-employed borrowers, freelancers, business owners, and investors who struggle to qualify for conventional mortgages due to irregular income or complex tax returns.
How do lenders calculate my income for a bank statement loan?
Lenders average 12-24 months of bank statement deposits to determine your qualifying income and mortgage eligibility.
What is the minimum credit score required for a bank statement loan?
Most lenders require a credit score of 620 or higher, but those with stronger financials may qualify for better rates and lower down payments.
Can I use a bank statement loan for an investment property?
Yes! Bank statement loans can be used for primary homes, second homes, and investment properties, including multi-unit rentals.
Loan Insights & Guides
Explore our expert-backed guides on loan options, home financing, and neighborhood insights to help you make informed decisions with confidence.
What Your Escrow Account Pays For
By Sean Hill | NMLS #1832670 | Last updated: September 7, 2026 Here’s your escrow account explained in
September 11, 2026
A Breakdown of Closing Costs When Buying a Home
By Paul Holzmeyer | NMLS #2508718 | Last updated: August 26, 2026 Closing costs when buying a house
August 28, 2026
How Down Payment Assistance Programs Work
By Corey Tressler | NMLS #1767005 | Last updated August 20 2026 Down payment assistance programs cover some
August 21, 2026