Bank statement loans for business owners
Your deposits prove what you make. A bank statement mortgage uses 12 or 24 months of personal or business statements to calculate your income, so the write-offs that lower your tax bill don't lower your buying power.
Is this you?
- You own a business or work for yourself, and your tax return shows far less than you actually bring in
- Revenue lands in the same business or personal account month after month
- A bank told you that you "don't make enough" after reading your Schedule C, K-1, or 1120-S
- You've been self-employed about two years (some lenders consider less with a strong file)
- You want to keep taking every legitimate deduction instead of amending returns to qualify
How qualifying works
The lender reviews 12 or 24 months of statements and totals the qualifying deposits. Transfers between your own accounts, loan proceeds, and refunds are backed out. What's left is averaged into a monthly figure.
On a business account, lenders apply an expense factor to account for the cost of running the business. A common default is around 50%, and many lenders will use a lower, more accurate figure if your CPA or tax preparer provides an expense letter or P&L.
On a personal account, where your business has already paid its bills before you paid yourself, lenders often count most or all of the deposits.
That monthly figure becomes your qualifying income for the debt-to-income (DTI) calculation, the same way a W-2 salary would.
Illustration only. The lender's deposit review and expense factor decide the real number, and the result is subject to full underwriting.
Not sure this is the right program?We'll compare it against the others on your actual numbers.
Check my optionsWhat you'll typically need
- 12 or 24 months of complete bank statements (all pages)
- Proof you've been in business: a business license, CPA or tax preparer letter, or state entity filing
- An expense letter or P&L from your CPA if you want a lower expense factor considered
- Photo ID and recent asset statements showing funds for closing and reserves
- A short explanation for any large one-time deposit (asset sale, insurance check, transfer)
Typical guidelines
Every lender sets its own rules. These are common patterns, not promises, and they change. We match your file to the lender whose guidelines fit it best.
- Credit: many programs start around 620, with better pricing as scores climb
- Statements: 12 or 24 months, personal, business, or both
- Time in business: about two years is typical; some lenders accept less
- DTI: some lenders allow up to around 50% with compensating factors
- Reserves: lenders often want a few months of housing costs in the bank after closing
- Property: primary homes, second homes, and investment properties are all possible
Who it fits (and who it doesn't)
Usually a good fit
- Steady monthly deposits into one or two accounts
- Big write-offs, depreciation, or Section 179 deductions
- A business account that's mostly business (or a clean personal account you pay yourself into)
Maybe not the best fit
- Most of your revenue is cash that never hits the bank
- Business and personal money are tangled across many accounts (fixable, see our account guide)
- You'd qualify easily on tax returns already. A conventional loan may price better, and we'll compare both
Bank Statement Loans: common questions
Do I need tax returns for a bank statement loan?
Tax returns are not used to calculate your income on a bank statement program. Some lenders still ask you to sign a standard IRS form or show proof of self-employment, but your qualifying income comes from your deposits.
Should I use personal or business bank statements?
It depends on how your money moves. If revenue goes into a business account that pays your expenses, business statements with an expense factor usually make sense. If your business pays its bills and then you pay yourself a steady amount into a personal account, personal statements can show a cleaner number. We look at both before choosing.
What expense factor will the lender use?
Many lenders default to around 50% for business accounts. Some use a factor based on your industry, and many accept a CPA or tax preparer letter showing your actual expense ratio. A documented lower ratio can raise your qualifying income.
Can I use a bank statement loan to buy an investment property?
Yes. Many bank statement programs allow primary residences, second homes, and investment properties. If the property is a rental, a DSCR loan that qualifies on the rent may also be worth comparing.
Are bank statement loans more expensive than conventional loans?
Non-QM loans are priced differently than conventional loans, and pricing depends on your credit, down payment, reserves, and the property. We can't quote a rate here. Because we shop 150+ wholesale lenders, we compare real offers on your actual file.
Bank Statement Loans are non-QM programs, not available in all states, and subject to credit approval, income and asset verification, and appraisal. Guidelines shown are typical illustrations and vary by lender. This is not a commitment to lend. Matador Lending, NMLS #2072896. Equal Housing Opportunity.
Guides for this program
How bank statement loans work for self-employed business owners
Bank statement loans use your deposits, not your tax return, to show income. Here is how lenders calculate it, who the program fits, and how to prepare.
The bank statement loan documents checklist for business owners
A practical checklist of the documents lenders usually ask for on a bank statement loan, plus tips to keep your file clean from the start.
Business vs. personal bank statements for a mortgage: which should you use?
Lenders treat business and personal bank statements differently. Here's how each is calculated and how to pick the account that shows your income best.
Find out what you qualify for in about 60 seconds
No tax returns. No credit pull to start. Just a straight answer from a broker who works for you.
Equal Housing Opportunity · NMLS #2072896 · Powered by Matador Lending