Program Overview
What is a bank statement loan?
A bank statement loan is a nontraditional mortgage program that may calculate qualifying income from eligible personal or business bank deposits.
The lender reviews deposit consistency, business activity, transfers, unusual deposits, expense factors, ownership, credit, assets, debts, and property eligibility.
Who This Program May Help
Who may benefit from bank statement financing?
Business Owners
Owners whose tax returns may not reflect current cash flow available for mortgage qualification.
Independent Contractors
Eligible borrowers with consistent bank deposits but variable traditional income documentation.
Commission-Based Professionals
Applicants with significant business-related deductions or fluctuating income.
Real Estate Professionals
Eligible self-employed borrowers with documented deposit history.
Qualification Factors
Common eligibility considerations
Transfer handling, expense factors, ownership percentages, deposit exclusions, statement periods, and qualification methods vary by program.
Preparing to Apply
Documents commonly requested
- Government-issued identification
- Business license or professional license when applicable
- Personal or business bank statements
- Business ownership documentation
- Profit-and-loss statement when required
- CPA or tax-preparer letter when required
- Asset and reserve statements
- Property and purchase documents
Step by Step
How the process works
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01
Complete the Secure Application
Provide your contact information, financing goals, property details, and estimated financial profile.
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02
Submit Supporting Documents
Provide the income, asset, credit, identity, entity, and property documents required for the selected program.
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03
Review Program Eligibility
Your mortgage professional reviews loan structure, occupancy, property type, credit, income, reserves, and documentation.
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04
Processing and Underwriting
The file, appraisal, title, insurance, disclosures, conditions, and applicable program requirements are reviewed.
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05
Final Approval and Closing
After final conditions are satisfied, closing documents are prepared for signing and funding.
Frequently Asked Questions
Bank Statement Loans FAQs
How many months of bank statements are required?
Programs commonly review a specified period of personal or business statements, but the required number of months varies.
Are all deposits counted as income?
No. Transfers, loans, one-time deposits, refunds, and other nonqualifying deposits may be excluded.
How are business expenses handled?
Programs may apply a standard or documented expense factor depending on business type and supporting documentation.
Can bank statement loans be used for investment properties?
Some programs allow eligible investment property financing, subject to lender rules.
Are bank statement loans qualified mortgages?
Many bank statement programs are non-QM loans with lender-specific underwriting and pricing.