A Bank Statement loan is a flexible mortgage option designed for self-employed borrowers, business owners, and independent contractors who may not qualify using traditional income documentation.
Instead of relying on W-2s, paystubs, or full tax returns, lenders can use 12 or 24 months of personal or business bank statements to help calculate qualifying income. This allows borrowers to show consistent cash flow, even if their tax returns do not fully reflect their true earning ability.
Bank Statement programs can be used for:
- Primary homes
- Second homes
- Investment properties
- Purchase loans
- Rate-and-term refinances
- Cash-out refinances
This can be a strong option for borrowers who have solid income deposits, good credit, and the ability to repay, but need a more flexible way to document income. Loan terms, down payment, credit requirements, and income calculations can vary by lender and program.
