Bank Statement Loans

They exist because self-employed borrowers who legitimately write off business expenses often show adjusted gross income far below their actual cash flow.

Self-employed borrowers using a bank statement loan submit 12 to 24 months, because the deposits themselves become the income calculation.

Agency lenders still lean on two years of tax returns and a 25%-ownership test.

Non-QM lenders often replace that with bank deposits and an expense factor instead of a tax return.

Title matters as much as income: these lines close to individuals or revocable living trusts, never LLCs.

Understanding both sides of the math — the traditional method and the DSCR alternative — is how you pick the right path for your next deal.

These are non-QM loans, which means the underwriting path is different from a conventional mortgage, not less regulated.

Credit, equity, and title rules still apply in full — this only changes how income gets proven.

– Underwriters don’t count raw deposits as income.

Which one fits depends on how your documented income looks on paper versus how the property actually performs.

Every legitimate deduction your CPA recommended lowers your tax bill and lowers your qualifying income at the same time.

A bank statement loan exists for one reason: self-employed income doesn’t always show up on a tax return the way it shows up in a checking account.

Choosing a 24-month statement period changes how your income gets calculated — it does not change how many months of reserves you need.

The 24-month lookback itself doesn’t move the score requirement; it changes how income gets averaged, not how credit gets weighed.

Down Payment For A 24-Month Bank Statement Loan — There’s no federal minimum down payment for a bank statement loan.