Bank Statement Only

What is a Bank Statement Only Loan?

Bank statement only loans are a great loan option for self-employed borrowers who may not qualify for traditional financing. Our bank statement only program allows borrowers to demonstrate their business’s true cash flow using their business or personal bank statements. Traditional financing for self-employed borrowers requires substantial documentation such as tax returns, W2s, and 1099s. However, these may not always indicate the business’s profitability (e.g., substantial tax write-offs, fluctuations in business cycles, etc.). This program allows buyers to avoid this, and instead submit either 12 or 24 months of their personal or business statements to demonstrate business cash flow.

FAQ

What is a bank statement only loan?

A bank statement only loan is a mortgage for self-employed borrowers who qualify based on cash flow shown in their bank statements rather than on tax returns, W-2s, or 1099s. You provide 12 or 24 months of personal or business bank statements, and we use those to document your income.

Who is a bank statement loan a good fit for?

It often works well for self-employed borrowers whose tax returns do not reflect their full earnings because of write-offs or seasonal income. You typically need at least two years of self-employment.

How much do I need for a down payment?

The program generally starts at a 10% down payment. The exact amount can depend on your credit profile and the property, and we can run the numbers for your scenario.

What credit score do I need?

Credit scores generally start at 600. Terms can vary based on your full profile, and we will outline your options.

Can I use it for a second home, an investment property, or a refinance?

Yes. It is available for owner-occupied homes, second homes, and non-owner-occupied purchases, as well as rate and term refinances, with loan amounts up to $3 million.

If you’re self-employed and weighing your options, our self-employed homebuyer guide covers the full picture.

Related: see the bank statement loan, the 12-month bank statement loan, and bank statement loans for the self-employed.