12 Months Bank Statement Mortgage Approval

Self-employed may use bank statements instead of tax returns to get a mortgage


Is your primary source of income self-employment, or do you have another income stream that is not always consistent?

Are you unable to secure a loan using traditional methods for getting approved for a mortgage loan?


You're not alone. Many self-employed borrowers including those who work on commission or other types of income structures encounter challenges from banks due to their unconventional earnings.

 

Bank Statement Loan Requirements

The most sought after mortgage for self employed borrowers. Here's some of the basics of what's needed.


  • 12 or 24 months of bank statements
  • Credit scores are above 660
  • Up to 90% financing
  • 2 or more years of self-employment

Who is Considered Self-employed?

Eligible self-employed borrowers for the bank statement loan are those with 25% or more business ownership as well as people who receive a year end 1099 statement for income, not a W-2.

  • Sole proprietorships
  • Freelancers, gig & 1099 workers
  • Limited Liability Company (LLC)
  • Corporation
  • S-Corporation
  • Partnerships

What do bank statement lenders look for?


Bank statement lenders typically look for certain criteria when evaluating applications for self-employed borrowers. Here's what to expect.

Income: The borrower's income stability and consistency is a key factor that is reviewed and usually reflected in their bank statements. Lenders will review the deposits and any debt payments on the statements to assess the borrower's cash flow and ability to repay the loan. They will also analyze the average daily balance to determine if the borrower maintains sufficient funds in their account. Additionally, lenders may scrutinize any overdrafts or bounced checks as indicators of financial instability.


Business Operations: To ensure your company or profession is financially stable, your lender will validate your business through its location, a business or professional license or a licensed CPA who will confirm your self-employment and business expenses.

Ultimately, bank statement lenders seek borrowers who demonstrate a reliable income source and responsible financial management, as these factors greatly influence their decision to approve a loan application.


Here's a recent loan we closed

— Our self-employed client purchased a house in Laguna Beach listed at $2,850,000 for $2,750,000.
— We secured financing of $2,220,000 (80 LTV) using 24 months of bank statements

States where we can help you

  • Arizona
  • Florida
  • Texas
  • California
  • Idaho
  • Virginia
  • Colorado
  • Oregon
  • Washington
California bank statement loan program