Bank Statement Loans are ideal for self-employed borrowers who don’t have traditional income documents like W-2s or tax returns. Instead, we use your personal or business bank statements to verify income. This flexible option makes it easier to qualify and move forward with confidence. Let’s find the right fit for your needs.
Bank Statement Loans are designed for borrowers who can verify income through personal or business bank statements rather than tax returns. This loan type is ideal for self-employed professionals, entrepreneurs, and anyone with non-traditional income streams who may not show qualifying income on paper.
These loans are built for self-employed borrowers, small business owners, independent contractors, and gig workers. If your income fluctuates or is not fully reflected in your tax documents, Bank Statement Loans can help you get approved based on actual cash flow.
Instead of reviewing W-2s or tax returns, lenders review 12 to 24 months of bank statements to assess your average income. Some programs use personal statements, while others allow business accounts with expense ratios factored in. The goal is to show stable deposits over time that support your ability to repay.
Bank Statement Loans can be used for a wide range of property types, including primary residences, second homes, and investment properties. Whether you’re purchasing a home for yourself or expanding a real estate portfolio, this loan option offers flexibility.
Lenders typically require a credit score of 620 or higher, although stronger credit may lead to better terms. Down payment requirements usually range from 10 to 20 percent, depending on the loan amount, property type, and your overall financial profile.
Yes, they are fully regulated and responsibly underwritten. These are not subprime loans. Borrowers still need to meet lender guidelines and show an ability to repay, just with more flexible income documentation. This makes them a secure and effective option for qualified buyers with alternative income.
At LUMI Funding Group, we specialize in helping self-employed borrowers find mortgage solutions that reflect the way they earn. Our team understands the challenges of qualifying for a loan when your income is variable or tax-efficient. That’s why we offer Bank Statement Loan programs that make sense for business owners, contractors, and independent professionals. We guide you through the process, help you gather the right documents, and structure a loan that aligns with your financial goals — without the red tape of traditional underwriting.
If you run your own business or have non-traditional income, a Bank Statement Loan might be the perfect fit. These FAQs cover everything from qualification to documentation and help you understand how this flexible loan works.
No. These loans are specifically designed to avoid the need for tax returns. Instead, lenders will review your personal or business bank statements over a 12 to 24-month period to verify income.
Most lenders accept personal or business bank statements. If you use business accounts, an expense ratio will typically be applied to estimate your net income. Some programs allow a CPA to verify the expense structure if needed.
Loan amounts vary based on your income, credit, and property type. Many lenders offer high-balance and jumbo options for qualified borrowers. The stronger your financial profile, the more flexibility you’ll have.
Yes. Many programs allow you to purchase or refinance investment properties using this documentation method. This is a popular solution for self-employed real estate investors and short-term rental owners.
Lenders average your monthly deposits over the review period to calculate a qualifying income. For business accounts, they may apply a standard expense ratio unless otherwise documented. This helps create a reliable estimate of what you can afford.
Rates can be slightly higher than traditional mortgages due to the added flexibility in documentation. However, they are competitive and reflect the borrower’s credit score, reserves, loan-to-value, and overall profile.
Bank Statement Loans are ideal for self-employed individuals, business owners, and 1099 workers who earn steady income but don’t meet the narrow documentation rules of traditional mortgages. These loans use bank deposits over the past 12 to 24 months to determine eligibility and offer flexibility on property types and loan sizes. While rates can be slightly higher, the convenience and tailored approach make them a powerful tool for homebuyers and investors with complex income situations.
