Bank Statement Loans: The No-Tax-Return Mortgage Option for Self-Employed Buyers
If you're self-employed and trying to get a mortgage, you’ve probably already heard “no” from a bank that couldn’t make sense of your tax returns.
That’s where Bank Statement Loans come in.
These loans are designed for business owners who write off a lot of expenses but still make good money. Instead of tax returns or W2s, we use 12 or 24 months of your business bank statements to qualify your income.
You’ll need a 640+ credit score, 10% down, and 6 months of reserves—but no tax documents.
Who Bank Statement Loans Are For
Bank Statement Loans are built for people who don’t get paid through a traditional paycheck. If you’re a business owner, freelancer, 1099 contractor, or gig worker—this program is made for you.
Common examples:
Realtors and brokers
Truck drivers (1099)
Barbers and stylists
E-commerce or Shopify sellers
Consultants and self-employed professionals
Anyone who writes off too much on taxes
If your net income on taxes doesn’t reflect your actual cash flow, this is how you qualify without getting penalized.
How It Works
Instead of using W2s, pay stubs, or tax returns, we use your bank statements to calculate income. Here's how:
12 or 24 months of business bank statements
We look at deposits—not balances. We average the monthly income to calculate what you actually bring in.
Expense ratio applied
Depending on your business type, we apply a 10%–50% expense ratio. You can use a CPA letter to adjust this number.
No personal tax returns, W2s, or 4506-C required
This loan is based on deposits and credit—not taxes.
Program Highlights
RequirementDetailsCredit Score640+ for 10% downDown Payment10% (LTV up to 90%)DTIUp to 55%Reserves6 months of housing paymentsLoan Terms30yr fixed, or 30yr/40yr with 10yr I/OProperty TypesPrimary, second home, investmentEligible UsesPurchase, refi, or standalone 2nd lien
You don’t need a huge down payment, and rates are competitive—especially compared to private or hard money.
Who This Works Best For
Bank Statement Loans work best for borrowers who:
Have strong, consistent monthly business income
Don’t show much income on tax returns due to write-offs
Need to buy or refinance now—without waiting another year to clean up taxes
It’s also a great fit for anyone investing in short-term rentals, second homes, or pulling cash out to reinvest in their business.
Common Misconceptions
“This must be a hard money loan.”
Nope. These are full-doc conventional alternatives—not private money. You still get fixed terms and full amortization.
“This sounds shady.”
It’s not. These are portfolio loans offered through legit lenders—just outside the agency (Fannie/Freddie) box.
“I thought I had to wait until next year.”
You don’t. If your deposits are solid now, you can move forward now. No need to amend returns or wait for another tax season.
Next Steps
If you’ve been told “no” because of your tax returns, send me a message.
I’ll take a look at your scenario—no pressure, no BS.
You can qualify for a home loan using your bank deposits instead of your tax return.
Let’s get you approved the smart way.
