📂 Bank Statement Loans for Self-Employed Buyers
If you’re self-employed, getting a mortgage can feel more complicated than it needs to be. Traditional loans often rely on tax returns, which don’t always reflect your true income. That’s where bank statement loans come in.
________________________________________
🔍 What Is a Bank Statement Loan?
A bank statement loan is a type of mortgage designed for self-employed borrowers. Instead of using tax returns, lenders review personal or business bank statements (typically 12–24 months) to calculate your income.
________________________________________
🧾 Who Are These Loans For?
1. Business owners & entrepreneurs
2. Freelancers or independent contractors
3. Gig workers or commission-based earners
4. Borrowers with strong cash flow but lower taxable income
If you write off a lot of expenses, this loan may better reflect what you actually earn.
________________________________________
💼 What Lenders Look For
-
Consistent deposits – Regular income shown on your statements.
-
Time in business – Usually at least 1–2 years self-employed.
-
Healthy reserves – Savings to cover several months of payments.
-
Credit and down payment – Requirements vary by program.
________________________________________
⚖️ Pros and Cons
Pros:
• No tax returns required
• Flexible income documentation
• Great option for self-employed buyers
Cons:
• Higher interest rates than traditional loans
• Larger down payment may be required
• Fewer lender options
________________________________________
🧭 Is a Bank Statement Loan Right for You?
These loans can be a great solution if your income is strong but your tax returns don’t tell the full story. The best way to know is to review your bank statements and goals with a mortgage professional.
________________________________________
🔍 Ready to Learn More?
If you have questions about getting a mortgage or want to explore your options, reach out! I’m here to help guide you through every step of the process.