Yes. Bank statement mortgage programs are available for borrowers, often self-employed, who may not show enough qualifying income on tax returns but can document cash flow through 12 or 24 months of personal or business bank statements.

These programs are often called “bank statement loans” or “non-QM loans.” Instead of using W-2s, paystubs, or traditional tax return income, the lender reviews deposits over a set period and calculates qualifying income from that history.

Common features include:

– **12- or 24-month options:** Some programs allow 12 months of statements, while others require 24 months. A longer history may help show more stable income.
– **Personal or business statements:** Depending on the program, the lender may use personal bank statements, business bank statements, or both.
– **Expense factor:** For business accounts, lenders typically reduce deposits by an expense percentage to estimate net income.
– **Self-employed focus:** These loans are commonly used by business owners, 1099 contractors, freelancers, and real estate investors.
– **Credit and down payment requirements:** Bank statement programs generally require stronger credit, larger down payments, and more reserves than standard conventional loans.
– **Primary, second home, or investment properties:** Availability depends on the lender and occupancy type.

They can be a good fit if your tax returns understate your actual cash flow due to legitimate business deductions. However, the details vary a lot by lender, including how deposits are counted, what expenses are applied, and whether unusual deposits must be excluded or documented.

A good next step is to have a mortgage professional review your bank statements before applying. That can give you a clearer idea of usable income, likely loan amount, and whether a 12-month or 24-month option is the stronger path.

Yes, bank statement loan programs are specifically designed for self-employed borrowers and business owners who don’t show enough qualifying income on tax returns due to write-offs and deductions. These loans use deposits into your personal or business bank accounts to calculate income instead of W-2s or tax returns.

**How Bank Statement Loans Work:**

– Lenders analyze either **12 or 24 months** of bank statements (personal, business, or both)
– Qualifying income is calculated from eligible deposits, often with an expense factor applied to business accounts (commonly 50%, though it can range from around 10%-85% depending on business type)
– Personal account programs typically count 100% of qualifying deposits
– Both options exist—24 months generally offers better terms, while 12 months provides more flexibility

**Typical Guidelines:**

– Credit scores starting around 620-660, with better pricing at 680+
– Down payments usually 10%-20% for primary residences
– Loan amounts available into the jumbo range (often up to $3M-$5M+)
– Available for primary homes, second homes, and investment properties
– Must typically be self-employed for at least 2 years
– A CPA or tax preparer letter is sometimes required to verify business ownership percentage

**Who Benefits Most:**

– Self-employed borrowers (1099 contractors, business owners, freelancers)
– Real estate investors
– Restaurant and retail owners
– Consultants and gig economy workers
– Anyone whose tax returns don’t reflect true cash flow

**Things to Know:**

– Interest rates are generally higher than conventional loans since these are non-QM (non-qualified mortgage) products
– Large or irregular deposits may need to be sourced and explained
– Transfers between your own accounts are typically excluded to avoid double-counting
– Some programs also allow a hybrid of bank statements plus other income types

Bank statement loans have grown significantly since 2015 and are now a mainstream option offered through many non-QM wholesale channels. If your tax returns don’t reflect your true earning power, this could be a strong path to homeownership or refinancing.

Yes, mortgage programs that use 12 or 24 months of bank statements for income verification are widely available. These are commonly known as “bank statement loans” and are a popular financing solution for self-employed borrowers, freelancers, and small business owners.

These loans are designed for individuals whose tax returns may not fully reflect their actual cash flow due to business write-offs and deductions. Instead of analyzing your W-2s or tax documents, lenders use your bank statements to calculate a qualifying monthly income based on your business’s revenue deposits.

Here’s a general overview of how they work:

* **Documentation:** You will provide either 12 or 24 consecutive months of your most recent personal or business bank statements. Lenders will look for consistent and stable deposits.
* **Income Calculation:** The lender will analyze the deposits to determine your average monthly income. For business accounts, they typically apply an “expense factor” (often around 50%, but this varies by lender and industry) to the total deposits to arrive at a qualifying income figure. For personal accounts used for business, they may be able to use a higher percentage of the deposits.
* **Borrower Requirements:** While income documentation is different, you will still need to meet other standard lending criteria. This includes having a solid credit score (typically 660 or higher), sufficient funds for a down payment and closing costs, and a reasonable debt-to-income ratio based on the calculated bank statement income.
* **Loan Terms:** Bank statement loans are a type of Non-Qualified Mortgage (Non-QM), meaning they fall outside of standard conventional guidelines. Down payment requirements are generally higher than for traditional loans, often starting at 10-20%.

These programs provide a valuable alternative path to homeownership for qualified entrepreneurs and self-employed professionals who have strong cash flow but complex or tax-efficient income structures.