Bank statement mortgages — no tax returns required.
Qualify off 12 or 24 months of business or personal bank statements. Built for self-employed borrowers whose tax returns underrepresent real cash flow.
Bank statement program guidelines
Rough guidelines only — actual qualification depends on the full loan file (credit depth, reserves, property type, occupancy, and investor overlays). We'll confirm your exact numbers in writing.
| Guideline | 12-Month Bank Statement | 24-Month Bank Statement |
|---|---|---|
| Min FICO | 660 · best 720+ | 660 · best 720+ |
| Min down payment | 15% (740+) · 20% standard | 10% (740+) · 15% standard |
| Max DTI | 50% | 50% |
| Reserves | 6 months PITI | 6 months PITI |
| Max loan | $3M | $4M |
| Occupancy | Primary, second, investment | Primary, second, investment |
| Expense factor | Industry-based (typ. 25%–50%) | Industry-based (typ. 25%–50%) |
| Cash-out refi | Up to 80% LTV | Up to 80% LTV |
| Rate vs conv. | +0.75%–1.5% | +0.5%–1.25% Better pricing than 12-mo |
12-Month Bank Statement
- Min FICO
- 660 · best 720+
- Min down payment
- 15% (740+) · 20% standard
- Max DTI
- 50%
- Reserves
- 6 months PITI
- Max loan
- $3M
- Occupancy
- Primary, second, investment
- Expense factor
- Industry-based (typ. 25%–50%)
- Cash-out refi
- Up to 80% LTV
- Rate vs conv.
- +0.75%–1.5%
24-Month Bank Statement
- Min FICO
- 660 · best 720+
- Min down payment
- 10% (740+) · 15% standard
- Max DTI
- 50%
- Reserves
- 6 months PITI
- Max loan
- $4M
- Occupancy
- Primary, second, investment
- Expense factor
- Industry-based (typ. 25%–50%)
- Cash-out refi
- Up to 80% LTV
- Rate vs conv.
- +0.5%–1.25%Better pricing than 12-mo
Who bank statement loans are for
- Self-employed contractors and trades
- Restaurant, retail, and shop owners
- Real estate agents and brokers
- Consultants and solo professionals
- Anyone whose Schedule C deductions cut qualifying income
Documents we need
- 12 or 24 months of bank statements (business OR personal)
- Business license (if applicable)
- Letter from CPA confirming you're self-employed (2+ years)
- ID, credit auth, signed disclosures
Bank statement mortgage FAQs
What is a bank statement mortgage?+
A bank statement mortgage uses 12 or 24 months of business or personal bank statements to calculate your qualifying income — instead of tax returns. We average your deposits and apply an expense factor (typically 25%–50%) based on your industry. The result is your qualifying income.
How is the expense factor determined?+
Lenders use a standard factor for your NAICS / SIC industry code. Service businesses with low overhead (consultants, real estate agents) often get a 15%–25% factor. Trades and contractors typically 40%–50%. CPA-prepared expense letters can sometimes override the standard factor downward.
12-month vs 24-month — which is better?+
24-month programs almost always price better (typically 0.25%–0.5% lower rate) because they show a longer track record. Choose 12-month only if your business is newer or 2024–2025 deposits are materially higher than the previous year.
Can I combine personal and business statements?+
Most programs require you to pick one — all business OR all personal. A few shelves allow combined, but they price higher. Business statements typically produce higher qualifying income for established businesses.
What about transfers between accounts?+
Transfers between your own accounts are excluded from deposit calculation (no double-counting). Underwriters trace every transfer, so keep your bookkeeping clean for the 12 or 24 months leading up to application.
Tax returns shrinking your buying power?
Bank statement loans solve this every week for our self-employed borrowers.
Related loan programs
Not sure this is the right fit? Explore other programs we originate.