Bank Statement Program
Bank Statement Loan Program – Flexible Financing for Self-Employed Borrowers
What is a Bank Statement Loan?
A Bank Statement Loan is a type of mortgage designed for self-employed individuals, freelancers, and business owners who may not have traditional income documentation like W-2s or tax returns. Instead, borrowers qualify using their bank statements to prove income.
This program is ideal for those with strong cash flow but write-offs or deductions that lower their taxable income on paper.
Benefits of a Bank Statement Program
No Tax Returns or W-2s Required – Use bank statements to prove income.
✅ Ideal for Self-Employed & Gig Workers – Perfect for business owners, freelancers, and independent contractors.
✅ Higher Loan Amounts – Borrow more based on actual cash flow.
✅ Flexible Down Payment Options – As low as 10% down, depending on credit.
✅ Available for Various Property Types – Finance primary residences, second homes, or investment properties.
Bank Statement Loan Process
Step 1: Pre-Approval & Income Review
- Provide 12 to 24 months of bank statements.
- Lender calculates income based on average monthly deposits.
Step 2: Loan Application & Property Selection
- Choose a home and submit your loan application.
- Provide business verification and credit history.
Step 3: Underwriting & Appraisal
- Lender reviews cash flow and debt-to-income ratio (DTI).
- Home appraisal is conducted to determine value.
Step 4: Loan Approval & Closing
- Once approved, finalize your loan terms.
- Close on your loan and move into your new home!
How Does a Bank Statement Loan Work?
Instead of requiring tax returns or pay stubs, lenders review:
🔹 12 to 24 months of personal or business bank statements
🔹 Deposits and cash flow to determine income
🔹 Debt-to-income ratio (DTI) based on bank deposits
💡 No need for W-2s or tax returns!