Bank Statement loans are designed for self-employed borrowers, business owners, freelancers, and independent contractors who may not qualify using traditional tax returns. Instead of using W-2s or tax returns, these loans use bank deposits to help determine your income.
This option is ideal for borrowers whose true cash flow is stronger than what appears on their tax returns due to business write-offs.
Rather than reviewing tax returns, lenders analyze your personal or business bank statements to calculate an average monthly income. This provides a clearer picture of your actual cash flow.
Typically, lenders review:
The calculated income is then used to qualify for the mortgage.
Bank Statement loans usually require:
These loans are commonly used for primary residences, second homes, and investment properties, depending on the program.
Most Bank Statement loans close within 20–30 days, depending on documentation, property type, and overall qualification.
A Bank Statement loan may be a great fit if you are self-employed and your income does not reflect your true earning power on tax returns. With proper planning, these loans can provide a flexible path to homeownership.
At Coast Capital, we help self-employed borrowers navigate Bank Statement loan options and guide you through the process from application to closing with clarity and confidence.