How Does a Bank Statement Loan Program Work?

Bank Statement Loans allow eligible self-employed borrowers to use bank statements to help verify income instead of tax returns. A lender will use these statements to analyze income to prove the ability to repay a loan.

Not all self-employed borrowers will qualify. Additional documents may be required for Bank Statement Loans eligibility.

• Available for purchase and cash-out or rate-term refinance
• Primary, second home, or investment properties
• Single family, townhomes, or condos
• 12- or 24-months business or personal bank statement submissions
• Additional documentation will be required for qualifying income and loan approval
• 1099 income option available
• Non-warrantable condos allowed

What Is the Difference Between a Bank Statement Loan and A Traditional Mortgage Loan?

Traditional loans will generally require tax returns, W-2s and paycheck stubs to verify a borrower’s income. A bank statement mortgage loan offers self-employed borrowers a different option to verify their income without using tax returns.

Are Self-Employed Borrowers Required to Use Bank Statement Loan Products?

A bank statement loan is often a great option for qualified self-employed borrowers. However, self-employed borrowers should choose the best loan product to help meet their mortgage needs.