Bank Statement Loan

Bank statement loans are a type of loan that allows you to get a mortgage without the documents that most loans need to prove your income. We use bank statements to qualify you for a mortgage rather than your tax returns, which are typically required for self-employed borrowers. If your tax returns show a loss, most lenders would turn you away. This is the case even with a profitable Profit & Loss. Lenders can only use the income claimed on your tax returns for qualifying. A bank statement loan bypasses the need for tax returns and instead focuses on the money you bring in monthly to qualify you for a mortgage. It works just like any other loan – you apply for and qualify for the loan and get the funding to buy a home, making your mortgage payments monthly.

Whom Is a Bank Statement Loan Good For?

You may want to use a bank statement loan if you don't have a steady cash flow. They are also good if you can’t get proof of income from an employer. People who might use a bank statement loan could be:


Consultants & Freelancers


Small Business Owners


Doctors & Lawyers

Get Started

Real Estate Investors & Agents

Pros of Bank Statement Loans


No tax returns, W-2s You can get mortgage financing without using your tax returns and/or you've been denied by your bank or credit union.


You can continue to claim your business write-offs without losing your mortgage eligibility.


You don’t need perfect credit


You can buy a home with just 10% down


A higher debt-to-income ratio may be okay 


Often have high loan limits


Often can be used on primary residences, second homes, and investment purchases

Cons of Bank Statement Loans


May have higher interest rates


May need a larger down payment


Not offered by all lenders