Educational guide · Non-QM Program
What are bank statement loans?
Own your own business? Do your tax returns fail to reflect your real income after deductions? Bank statement loans use your deposits — not your taxes — to calculate qualifying income.
How it works
Instead of tax returns, the lender reviews 12 or 24 months of personal or business bank statements. They total deposits, apply an industry-appropriate expense factor, and calculate qualifying income. Often a fit for legitimate business owners whose tax returns show heavy deductions.
Who it fits
- Restaurant, shop, and food-truck owners
- General and sub-contractors
- Stylists, barbers, salon owners
- Doctors, dentists, professionals with their own practice
- Commission-based sales
- Self-employed 2+ years
General characteristics
- Typically 2+ years operating the business.
- Down payment tends to be higher than a conventional loan.
- No tax returns or W-2 required.
Specific characteristics vary by lender. Informational only; not an offer.
Related programs for self-employed borrowers
For established businesses with a CPA — the CPA prepares and signs a P&L that serves as the sole income document.
If your income comes primarily from 1099s, this program uses gross 1099 income rather than analyzing deposits month-by-month.
Bridge product for newer self-employed borrowers (under 2 years) whose single year of tax returns does reflect real income.
If you file taxes with ITIN instead of SSN, you can combine ITIN + bank statement as income documentation.