Bank Statement Loan
A bank statement loan is a mortgage that documents income with 12 to 24 months of bank deposits instead of tax returns. It is built for self-employed borrowers whose tax returns show less income than they actually earn.
Get Your Bank Statement RateBank Statement loans by the numbers
| What | Figure | Source |
|---|---|---|
| What the lender must still establish | A reasonable, good-faith determination that you can repay the loan | CFPB, ability-to-repay rule |
Last reviewed 2026-10-05
Key Features
- ✓Income documented from personal or business bank statements
- ✓No tax returns, W-2s or pay stubs for the qualifying income
- ✓A non-qualified mortgage: not sold to Fannie Mae or Freddie Mac
- ✓Available for primary homes, second homes and investment properties with many lenders
- ✓Each lender sets its own credit, down payment and reserve rules
Who Is a Bank Statement Loan a Good Fit For?
- Self-employed borrowers with significant business write-offs
- Business owners and independent contractors
- Borrowers with variable or seasonal income
- Borrowers who do not fit conventional income documentation
Requirements
Credit Score
Set by each lender; higher scores price better.
Down Payment
Set by each lender, and usually more than a conventional loan asks.
Debt-to-Income
Calculated from deposits, after the lender applies an expense factor to business accounts.
Pros and Cons
Advantages
- +Qualifies on real cash flow
- +Works when tax returns understate income
- +Flexible property types
- +Can refinance into a conventional loan later
Considerations
- -Higher rates than conventional loans
- -Larger down payment and reserves
- -More statements and explanation letters to assemble
- -Lender guidelines differ a lot, so quotes are harder to compare
The Questions Everyone Asks
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