Complete Bank Statement Loan Guide
Written by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A bank statement loan lets self-employed Florida borrowers qualify using deposits to their bank accounts instead of tax returns. For business owners who write off expenses and show low taxable income, it bridges the gap between real cash flow and what a traditional lender sees.
This guide explains how bank statement loans work, what documentation you need, and how income is calculated. Mortgage Capital, NMLS# 1859012, helps Florida's self-employed buyers and investors qualify on their actual earnings.
How bank statement loans work
Instead of tax returns, the lender reviews 12 to 24 months of personal or business bank statements and averages the deposits to establish qualifying income. This is a non-QM loan, meaning it falls outside standard agency rules.
It is built for borrowers whose tax returns understate income because of legitimate business write-offs, depreciation, or owner distributions.
Who benefits most
Business owners, independent contractors, gig workers, real estate agents, and commission earners are the typical clients. If you have been self-employed for at least two years and have steady deposits, you are a strong candidate.
It also helps borrowers who recently changed business structure but can document continued cash flow.
How income is calculated
For personal statements, lenders often count a high percentage of deposits as income. For business statements, they apply an expense factor, either a fixed percentage or one supported by a profit-and-loss statement, to estimate net income.
We review your statements first and tell you the qualifying income before you apply, so there are no surprises later.
Down payment, credit, and rates
Bank statement loans generally require 10% to 20% down and a credit score around 660 or higher, with better terms at higher scores. Rates run above conventional because these are non-QM loans.
Larger down payments and strong reserves improve both approval odds and pricing.
Property types and uses
You can use a bank statement loan for a primary home, second home, or investment property, including condos and multi-unit buildings. It pairs well with Florida's many self-employed buyers in tourism, construction, and professional services.
For investors, a bank statement loan can finance a primary residence while a DSCR loan handles the rentals.
Complete Bank Statement Loan Guide: step by step
Frequently asked questions
What is a bank statement loan?
A loan that qualifies self-employed borrowers using bank deposits instead of tax returns to establish income.
How many months of statements do I need?
Most programs use 12 or 24 months of personal or business bank statements.
What credit score do I need?
Generally around 660 or higher, with better rates as your score climbs.
How much down do I need?
Typically 10% to 20%, depending on credit, reserves, and property type.
Are bank statement loan rates higher?
Yes, somewhat, because they are non-QM loans. The tradeoff is qualifying on real cash flow, not tax returns.
Can I use a bank statement loan for an investment property?
Yes. It works for primary homes, second homes, and investment properties.
How is my income calculated?
Lenders average your deposits, applying an expense factor for business accounts, to determine qualifying income.
Do I need to be self-employed for two years?
Usually yes. A two-year self-employment history is the standard, though exceptions exist for related prior experience.