Self-employed
Bank statement loans for self-employed borrowers.
Business owners often write off expenses that lower the income on their tax returns. A bank statement loan, a non-QM option, uses your deposits over 12 or 24 months to estimate income instead. Terms vary widely by lender.
Talk with HieuMay be a good fit if…
- You are self-employed, a business owner, or a 1099 contractor.
- Your tax returns understate what your business really earns.
- You have steady deposits over the last 12 to 24 months.
What to know
Statements, not returns
Lenders review 12 or 24 months of personal or business bank statements and apply an expense factor to business deposits.
Extra documents
Expect to show proof of self-employment, such as a business license or a CPA letter, in addition to the statements.
Trade-offs
Non-QM loans usually carry higher rates and larger down payments than conventional loans.
Questions worth asking
- Should I use personal or business statements?
- What expense factor will the lender apply?
- Could I qualify for a conventional loan instead?
Frequently asked questions
What is a bank statement loan?
A non-QM mortgage that estimates a self-employed borrower's income from 12 or 24 months of bank deposits instead of tax returns.
Who qualifies for a bank statement loan?
Usually self-employed borrowers with about two years in business and steady deposits. Credit, down payment, and reserve requirements vary by lender.
Are rates higher than conventional loans?
Typically yes, because non-QM loans carry more risk for lenders. Compare offers and ask about any prepayment penalty.
Related reading
Want advice for your situation?
Hieu Nguyen, Senior Mortgage Loan Originator, Century Financial Group Co.. Loans are offered only in states where Hieu Nguyen and Century Financial Group are licensed — see NMLS Consumer Access. Not a commitment to lend; all loans are subject to credit and underwriting approval. Contact: (714) 409-9272.