What is a bank statement loan?
Answered by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A bank statement loan qualifies self-employed borrowers using 12 to 24 months of bank deposits instead of tax returns. Lenders average your deposits to establish income, sidestepping the write-offs that lower taxable income.
It's built for business owners, contractors, and gig workers in Florida who earn well but show little net profit on returns. Expect a slightly higher rate and usually 10% to 20% down. We'll calculate your qualifying income from your statements before you apply.
Income from deposits
A bank statement loan qualifies you using your bank deposits instead of tax returns. Lenders review 12 to 24 months of statements and use your average deposits to calculate income.
It is built for self-employed buyers whose tax returns show low net income after write-offs but who have strong cash flow.
The trade-offs
Bank statement loans usually ask for a larger down payment, often 10% to 20%, and carry a slightly higher rate than a standard loan. In exchange, you skip the tax-return hurdle.
For many business owners, the higher borrowing power is worth it. Reach out and we will see whether a bank statement loan gets you more house.