What is it?
A bank statement loan is for people who are self-employed or run their own business. Instead of using tax returns to prove income, the lender looks at 12 to 24 months of your bank deposits. This matters because many business owners write off a lot of expenses — which makes their taxable income look smaller than what they actually earn.
Good fit when...
- Business owners and entrepreneurs
- Freelancers, consultants, and 1099 contractors
- People with strong cash flow but low taxable income on paper
- Anyone who cannot qualify using tax returns alone
- Buyers with consistent and growing bank deposits
Probably not the right fit if...
- W-2 employees with traditional income — a conventional loan will get you a better rate
- People with inconsistent or declining bank deposits
- Buyers looking for the lowest possible rate (non-QM loans cost more)
- Borrowers who cannot put down a larger down payment
Not sure if this is the right loan for you?
Take the loan finder quiz or book a free call. I will look at your full picture and tell you exactly what makes sense.