When applying for a traditional mortgage, lenders typically require W-2s and tax returns to verify income. But if you’re self-employed and don’t have these documents, securing a loan can feel challenging. Fortunately, bank statement loans offer a flexible solution.
What Is a Bank Statement Loan?
A bank statement loan is a type of non-qualified mortgage (non-QM) designed for self-employed borrowers. Instead of using tax returns, W-2s, or pay stubs, these loans allow you to qualify based on your bank statements.
Our 12-month bank statement loan program calculates your average monthly deposits to determine your qualifying income. This approach makes it possible to secure a mortgage even if tax returns don’t reflect your full earnings.
Who Can Benefit from These Loans?
This type of mortgage is designed for individuals with non-traditional income sources, including:
- Small business owners
- Freelancers and independent contractors
- Realtors and commission-based professionals
- Gig workers and seasonal employees
For those in these fields, reported income on tax returns often appears lower due to deductions. A loan that considers deposits instead provides a more accurate financial picture, making homeownership more accessible.
Bank Statement Loan Requirements
To qualify for this type of mortgage, borrowers typically need to meet the following criteria:
- Self-employed with steady income – A strong cash flow demonstrated through bank deposits.
- 12 to 24 months of bank statements – Instead of tax returns, lenders use deposits to determine eligibility.
- At least 10% down payment or home equity – A reasonable investment is required for approval.
- Loan amounts up to $3 million – Provides flexibility for various property types and financing needs.
These requirements make alternative income loans a strong option for borrowers seeking flexible financing solutions.
The Bottom Line
For self-employed borrowers, qualifying for a mortgage without tax returns is possible. By verifying income through bank deposits rather than W-2s or pay stubs, lenders offer a solution tailored to business owners, freelancers, and those with variable income streams.
If you’re looking to buy a home or refinance an existing mortgage, consider an alternative loan that aligns with your financial situation. Contact us today to explore your options, request a rate quote, or begin the pre-approval process.
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