Self-employed borrowers often write off a lot of expenses, which is smart for taxes but can make your income look small on paper. Bank statement loans solve that by looking at your actual deposits instead of your tax returns.
How they qualify you
Instead of W-2s and tax returns, the lender reviews your business or personal bank statements, often 12 to 24 months of them, to estimate your real income from the money flowing in.
Who they fit
- Business owners and freelancers
- Gig and contract workers
- Anyone whose tax returns understate their true cash flow
The tradeoffs
Because they do not use traditional income documents, these loans usually ask for a higher credit score, a larger down payment, and a slightly higher rate than a standard conventional loan.
Bring a year or two of bank statements and we can estimate what you might qualify for, even if your tax returns say otherwise.