Bank Statement Loans: Qualify With Your Deposits, Not Your Tax Returns
You run a business, you make good money — and your tax returns say otherwise, because you (smartly) write off everything you can. Banks punish you for that. A bank statement loan doesn't. It documents your income with 12–24 months of real bank deposits instead of tax returns, W-2s, or pay stubs.
Who this is built for
- Self-employed borrowers and business owners with 2+ years in business
- 1099 contractors, consultants, and freelancers with steady deposits
- Gig and commission earners whose tax returns understate real cash flow
- Anyone denied by a big bank because "the tax returns don't support the income"
How it works
Instead of averaging the net income off your 1040s, the lender averages your actual deposits over 12 or 24 months. Using business accounts, an expense factor (commonly around 50%, and lower with a CPA letter) estimates your net income; personal accounts typically count deposits at or near full value. From there, the loan works like any other mortgage.
Typical requirements
- 12 or 24 months of personal or business bank statements
- Roughly 10–20% down depending on credit and loan size
- Credit score around 620+ (better pricing as scores rise)
- About 2 years of self-employment history
- No tax returns, no W-2s, no pay stubs
Wondering what your deposits qualify you for?
Send Travis two months of statements and get a straight answer — no credit pull, no obligation.
Bank statement loan vs. conventional
If your tax returns fully support your income, a conventional loan will usually price better — and Travis will tell you that to your face. The bank statement loan wins when write-offs have shrunk your taxable income below what you actually earn. The honest move is to price both, which takes one conversation.
Straight answers to common questions
What is a bank statement loan?
A mortgage that uses 12–24 months of bank deposits as income documentation instead of tax returns — built for self-employed borrowers whose write-offs understate their cash flow.
Are the rates higher?
Somewhat, since it's a non-QM product. The current bank statement rate is published every morning on the live rate sheet so you can see the actual gap.
Can I refinance with one?
Yes — both rate-and-term and cash-out refinances are available.
Which states?
California, Oregon, Nevada, Arizona, Colorado, Idaho, Florida, Texas, and Tennessee.