Your deposits are your income.
If you run a business, your tax returns are written to minimize income, and a bank reads them exactly that way. A bank-statement loan documents what you actually earn: 12 or 24 months of business or personal statements, no tax returns required.
- Income documentation
- 12 or 24 months of business or personal bank statements
- Tax returns
- Not required
- Occupancy
- Primary residence, second home or investment
- Also available
- Bank-statement HELOC and second mortgages
How it works
A bank-statement loan qualifies a self-employed borrower on the deposits flowing through their accounts rather than on the net income reported to the IRS. The lender reviews 12 or 24 months of statements, totals the eligible deposits, applies an expense factor for business accounts, and arrives at a monthly qualifying income.
It exists because the tax code and mortgage underwriting pull in opposite directions. A good accountant reduces taxable income through legitimate deductions. A conventional underwriter then sees that reduced figure and declines the loan. Bank-statement programs read the business as it actually operates.
Troy reviews the statements himself before you apply. He tells you how the deposits will be counted, which large deposits will need an explanation and roughly where the qualifying income lands, so there are no surprises in underwriting.
- Business owners, 1099 contractors, consultants and commissioned professionals
- Borrowers whose tax returns understate income because of legitimate deductions
- Self-employed buyers who were told no by a bank
- Owners who want to refinance or take cash out but cannot qualify on returns
- Self-employed homeowners who want a HELOC or second mortgage
Not sure you fit? Ask. Troy tells people on the first call when a different program serves them better.
What to consider
Program details vary by investor and change over time. These are the questions that decide whether the loan is right for you; Troy confirms the specifics for your file.
Business or personal statements
Business statements usually carry an expense factor; personal statements showing business deposits may not. Troy chooses the set that gives the fairest picture.
Expense factor
Programs apply a standard expense ratio to business deposits, or accept a letter from your CPA stating your actual one. The difference can be substantial.
Large or irregular deposits
Transfers between your own accounts and one-off deposits are typically excluded or need explanation. Troy flags them before underwriting does.
Pricing
Bank-statement loans are priced above agency loans for the same credit profile. Troy shows the cost next to any agency option you might qualify for.
The process
From the first conversation to funding, you deal with Troy.
Send 12 or 24 months of statements
Troy reviews them personally and tells you where the qualifying income lands before you apply.
Pre-qualification
Credit review and a written estimate with the income calculation explained.
Underwriting
Appraisal, conditions cleared personally, deposits documented once.
Closing and funding
Signing is scheduled around you. Troy coordinates escrow so the loan funds on the date you planned.
Questions people ask
General answers. The answer for your file comes from a conversation with Troy, not from a web page.
How is my income calculated from bank statements?
The lender totals eligible deposits over 12 or 24 months, applies an expense factor for business accounts, and divides by the number of months. Troy runs the calculation before you apply.
Do I need to have been self-employed for a certain time?
Most programs look for an established history of self-employment, typically around two years, with some flexibility. Troy confirms the requirement for the program that fits.
Can I use a bank-statement loan for an investment property?
Yes. Bank-statement programs cover primary, second-home and investment property. For rentals, a DSCR loan may be the simpler route.
Can I get a HELOC with bank statements?
Yes. Bank-statement HELOC and fixed-second programs let self-employed owners access equity without refinancing a low-rate first mortgage.
Related programs
Often considered alongside this one. Troy prices the alternatives so you can see them side by side.
Asset depletion
Qualify on liquid assets when the income on paper does not tell the story.
DSCR investor
Investor financing qualified on the property's rental income rather than personal tax returns.
HELOC
A revolving line against your equity that you draw on as you need it, leaving your first mortgage untouched.
Jumbo
Loan amounts above the county conforming limit for higher-value homes, with underwriting that reads the whole financial picture.
Talk it through with Troy.
No obligation and no credit pull on the first call. Tell him what you’re trying to do and he’ll tell you whether bank statement financing is the right tool, and what it would cost.