Bank statement loans for self employed buyers.
Business owners often write off a lot of expenses, which is smart for taxes but can make income look low on a tax return. A bank statement loan looks at the money actually moving through your accounts instead, using 12 or 24 months of personal or business bank statements.
Who it's for
- Business owners, entrepreneurs and independent contractors
- Real estate agents, stylists, consultants, truckers and other self employed professionals
- Buyers whose tax returns do not reflect their true earning power
How it works with me
- We gather 12 or 24 months of personal or business bank statements.
- Qualifying income is calculated from your deposits. For business accounts, an expense factor is applied based on your type of business or a statement from your CPA.
- Bank statement loans are Non QM loans, so the pricing and down payment requirements differ from conventional loans. I will show you every option in writing.
What you'll need
- 12 or 24 months of consecutive bank statements
- Proof you have been self employed, often for two years, such as a business license or CPA letter
- Asset statements for your down payment and reserves
Every situation is different. Send me your scenario and I will tell you honestly which programs fit, and compare them side by side in writing.
Programs, terms and eligibility vary and are subject to credit approval, underwriting guidelines and program availability. Not all applicants will qualify. This is not a commitment to lend. Laila Smith, NMLS #844202, HomeTown Lending, NMLS #2712965. Equal Housing Opportunity.
Questions buyers ask me
Do I need to provide tax returns?
Typically no. That is the main benefit. Income is calculated from your bank statements instead of your tax returns.
Should I use personal or business statements?
It depends on how your income flows. Some owners pay themselves into a personal account, others run everything through the business. I review both to see which gives you the strongest result.
Is a bank statement loan only for buyers with perfect credit?
No. Non QM programs have their own guidelines, and many are flexible. I will review your full picture and tell you honestly where you stand.