Bank Statement Loan - Self Employed

Bank Statement Loan

Bank Statement Loans California

A bank statement loan is indeed a specialized solution that caters to the unique needs of self-employed professionals. It offers a more flexible approach to income verification, which can be particularly beneficial for those with non-traditional income streams. By using bank statements instead of tax returns or pay stubs, self-employed individuals can demonstrate their income stability and capacity to manage debt, which can help them secure financing options that align with industry standards while accommodating their specific circumstances. If you’re considering this option, it’s important to explore our various programs available and consult with one of our loan officer's who have experience with these types of loans to find the best fit for your financial situation.

Bank Statement Mortgage

Who Should Consider using a Bank Statement Loan?

California bank statement loans are designed to accommodate the unique financial situations of individuals who may not have traditional income documentation. Here’s a list of those who might benefit from such loans:

Sole Proprietors: Individual business owner's using personal or business bank statements.
Gig workers: Those with fluctuating income from short-term contracts or freelance work.
Entrepreneurs: Business owners who may not have steady income yet.
E-commerce Professionals: Individuals running online businesses with variable sales.
Individuals With Multiple Streams of Income: Those with diverse income sources that aren’t reflected in tax returns.
Influencers: Social media personalities with income from various platforms.
Freelancers: Independent workers who earn through project-based work.
Consultants: Professionals providing expert advice on a contractual basis.
Independent Contractors/1099: Workers paid on a per-job basis without traditional employment benefits.
Small Business Owners: Entrepreneurs with their own businesses and variable income.
Self-Employed Individuals such as CPA's, Doctor's and Lawyers: Professionals who run their own practices.
Artists: Creative individuals with income from commissions, sales, or performances.
Real Estate Investors/Agents: Those investing in property and earning rental income.
Truck Drivers: Individuals earning through transportation services.

Bank statement loans can be particularly helpful for those who have consistent cash flow but lack traditional employment records or have too many write-off's on their tax returns to qualify for a traditional mortgage.

Think you qualify for a Bank Statement Loan?

Check rates on our bank statement loans.  Click the button and plugin your scenario.

What Items are Required for a Bank Statement Loan?

To apply for a bank statement loan, you typically need to provide the following:

  • Bank Statements: Usually the last 12 to 24 months to show income and cash flow.
  • Profit and Loss Statement (P&L): This is not normally required unless you're needing to lower the expense factor which will increase your qualifying income.
  • Down Payment: A certain percentage of the home’s purchase price, often around 10% for primary residences and 20% for investment properties.
  • Credit Score: Many lenders require a minimum credit score, which can vary but is often around 620.
  • Debt-to-Income Ratio (DTI): This should ideally be below 50%.  If it's above 50%, we have other "no income qualifying" options available.
  • Asset Documentation: 6-12 months reserves are normally required depending on the loan amount.  This is to show you have reserves or other assets in case of financial difficulties.


Each of our lender's may have specific requirements, so it’s best to call us about the details of your scenario.

Bank Statement Guidelines for 2024

Bank Statement Loan Details:

  • No tax returns are required
  • Multiple businesses are okay
  • Combining a spouses W-2 income is okay
  • Use 12 or 24 months bank statements
  • 7 different ways to calculate bank statement income to help get approved
  • Loan amounts from $100k to $6 million
  • 90% LTV on purchases
  • 30 and 40 year fixed rates
  • Interest only payments are available to lower the monthly payment
  • Purchase or refinance primary residences, second home and 1-4 unit investment properties.

These are general guidelines.  It’s best to call our office about the details of your scenario.

Can I have Irregular Income Deposits and Still Qualify for a Bank Statement Mortgage?

Yes, irregular income deposits can still qualify you for a bank statement mortgage. For example, we have attorney's and realtor's with inconsistent deposits qualify.  These loans are designed for borrowers who have non-traditional income sources, such as self-employment, freelance work, or irregular commission payments. Lenders typically review your bank statements over a specific period (usually 12 to 24 months) to assess your income stability and ability to repay the loan. Keep in mind that each of our lender's has its own criteria, so it’s best to discuss your specific situation with us prior to sending documents.