A bank statement loan is a non-QM mortgage used by self-employed borrowers. Instead of tax returns or pay stubs, you qualify using your personal or business bank statements.
Most lenders review 12 to 24 months of statements to calculate your income. This method helps those with real earnings but complex tax structures.
Bank statement loans calculate your qualifying income based on actual cash flow into your bank account. Instead of looking at tax documents, lenders review 12 to 24 months of consistent deposits. They use that average to determine how much you can borrow.
This approach helps borrowers who write off large business expenses or have seasonal earnings. Lenders often allow for both personal and business accounts, adjusting income based on deposit type and business structure.
You can use this loan for primary homes, second homes, or investment properties. Most lenders offer fixed-rate and adjustable-rate options depending on your goals.
Because bank statement loans are non-QM (non-qualified mortgages), underwriting is more flexible. That said, you may face slightly higher interest rates or down payment requirements
How Do Bank Statement Loans Work?
Bank statement loans calculate your qualifying income based on actual cash flow into your bank account. Instead of looking at tax documents, lenders review 12 to 24 months of consistent deposits. They use that average to determine how much you can borrow.
This approach helps borrowers who write off large business expenses or have seasonal earnings. Lenders often allow for both personal and business accounts, adjusting income based on deposit type and business structure.
You can use this loan for primary homes, second homes, or investment properties. Most lenders offer fixed-rate and adjustable-rate options depending on your goals.
Because bank statement loans are non-QM (non-qualified mortgages), underwriting is more flexible. That said, you may face slightly higher interest rates or down payment requirements
ALT Financial Network makes bank statement loans simple, fast, and personalized for self-employed borrowers.
Work with a licensed mortgage broker who understands your income—no W-2s needed.
Bank statement mortgage loans are designed for people with non-traditional income. Common applicants include small business owners, freelancers, consultants, real estate agents, and gig workers.
If you have regular deposits and manage your cash flow well, this loan can work for you.
To qualify, most lenders ask for:
You may also need to provide business licenses, expense summaries, or CPA letters.
Bank Statement Loan Requirements
To qualify, most lenders ask for:
You may also need to provide business licenses, expense summaries, or CPA letters.
Skip the tax return hassle. Use your bank statements to qualify with a bank statement loan. We make the process easy for freelancers, contractors, and business owners.
Applying for a bank statement loan is simple when you know what to expect. Here’s a step-by-step guide to help:
Step 1: Connect With a Mortgage Broker: Start by contacting an experienced mortgage broker who understands non-traditional loans. They’ll review your situation and determine if a bank statement loan fits.
Step 2: Gather Your Bank Statements: Collect 12 to 24 months of personal or business bank statements. Make sure your deposits are consistent and clearly documented.
Step 3: Provide Business Verification: You may need to show a business license, CPA letter, or proof of self-employment. Some lenders also ask for a profit-and-loss statement or expense breakdown.
Step 4: Submit a Loan Application: Your broker will help you complete a loan application and collect supporting documents. They’ll calculate your income based on average monthly deposits.
Step 5: Choose a Loan Program: Review your options. Decide between fixed or adjustable rates, and pick terms that fit your goals.
Step 6: Get Pre-Approved and Move Forward: Once approved, you’ll move into underwriting and then closing—just like a traditional mortgage, but without the W-2s.By working with a trusted mortgage broker, you’ll avoid delays and get expert guidance through every step.
Pros:
Cons:
We’ll help you decide if the benefits outweigh the trade-offs for your situation.
Traditional mortgages are designed for borrowers with W-2 income, consistent pay stubs, and tax returns. They follow strict guidelines and offer lower interest rates, but can be limiting for self-employed borrowers.
Bank statement loans use actual deposit history to verify income, offering more flexibility for entrepreneurs, freelancers, and small business owners. They’re ideal for those with real income but non-standard paperwork..
Traditional loans don’t work for everyone—bank statement mortgage options give you more control. Let our mortgage experts help you secure financing on your terms.
At ALT Financial Network, we specialize in flexible lending solutions for real-life situations. We understand that self-employed borrowers don’t always fit into traditional guidelines—and we’re here to help bridge that gap.
Our team works closely with each client to assess goals, review bank statements, and find the right loan. We combine years of experience with personalized service, so your mortgage process feels clear, smooth, and fast.
What sets us apart:
ALT Financial Network is a full-service mortgage brokerage committed to helping clients secure the right financing—no matter how complex their income. From bank statement loans to conventional, FHA, jumbo, and hard money programs, we offer personalized support and fast, reliable service across California and beyond. Whether you’re self-employed or simply need a more flexible approach, we’re here to guide you every step of the way.