Is a Bank Statement Loan Right for you?
If you’re self-employed, a freelancer, or a business owner with strong income but unconventional paperwork, a Bank Statement Loan could be the perfect financing solution. Instead of relying on tax returns or W-2s, lenders review your recent bank statements to determine income—making it easier to qualify when your tax filings don’t tell the full story.
This type of loan is designed for entrepreneurs and independent earners who want to buy or refinance a home without jumping through the hoops of traditional income verification. If you’ve got steady deposits but write off a lot for tax purposes, this loan gives you credit where credit is due.
Benefits of Bank Statement Loans
Bank Statement Loans offer flexibility, speed, and privacy. With no need for tax returns, 1099s, or pay stubs, you can qualify based on the actual cash flow hitting your account. That means faster approvals and fewer obstacles for self-employed borrowers.
You also maintain control over how your income is evaluated—most programs average 12 to 24 months of deposits, giving you options based on your strongest months. It’s an excellent path for buying a primary home, second home, or even investment property on your terms.
Eligibility Requirements for Bank Statement Loans
To qualify, lenders typically review 12–24 months of personal or business bank statements to calculate average income. A credit score of 620 or higher is usually required, along with a down payment of 10%–20%, depending on the loan size and property type.
You’ll also need a strong deposit history and a reasonable debt-to-income ratio based on your bank statement income. At Foundation Lending Partners, we work with self-employed borrowers every day and can help tailor a solution that fits your financial reality—not just your tax return.
