Loan programs · Bank Statement
Your deposits tell the real story.
If you're self-employed and your tax returns understate what you actually earn, a bank statement mortgage qualifies you on the money flowing through your accounts — not your write-offs. Here's how it works in Orange County.
What is a bank statement mortgage?
A bank statement mortgage is a home loan for self-employed borrowers that qualifies you on 12–24 months of bank deposits instead of tax returns or W-2s. The lender averages your qualifying deposits to set your income, so business write-offs don't sink your approval. Choice Home Mortgage shops specialized lenders to find the program that reads your deposits most favorably.
Bank statement loans, explained in 30 seconds.
Self-employed? Here's the whole idea — quick, clear, and friendly.
Income proven by your bank account.
A bank statement mortgage is built for the millions of capable self-employed borrowers whose tax returns understate their real income. Instead of W-2s and full returns, the lender qualifies you on the actual deposits flowing through your personal or business accounts — typically over 12 to 24 months.
An underwriter totals your eligible deposits, removes transfers and non-income items, then averages the result to set your qualifying income. Personal-account programs usually count a larger portion of deposits; business-account programs apply an expense factor. Because the rules differ lender to lender, a broker earns its keep here — we present your statements to the program that reads them most favorably. Worried a credit hiccup rules you out too? One bank’s “no” isn’t the answer — different programs weigh credit differently.
Prefer to qualify on a CPA-prepared statement instead of raw deposits? See our P&L Only mortgage. Paid mostly on 1099s? A 1099 income loan may fit better. We’ll compare lanes and point you to the one that qualifies you for the most. Want a rough number first? Try the bank statement income calculator.
Going deeper: weighing this against qualifying on a rental’s own income? DSCR loan vs bank statement loan compares them side by side. Buying through an LLC or business entity, or planning a cash-out refinance? Both have their own quick answers.
Why a bank statement loan works for the self-employed.
Deposits, not tax returns
We total the qualifying deposits across your statements, strip out transfers and one-offs, and average the rest — your real cash flow, not your write-offs.
12 or 24 months
Most programs review 12–24 months of personal or business bank statements. The longer window can smooth out a seasonal or lumpy business.
Personal or business accounts
Personal statements commonly count a higher share of deposits; business accounts apply an expense factor. We pick the lane that qualifies you for the most.
Built for the self-employed
Two years of self-employment is the usual benchmark. No W-2s, no full tax returns to dig up.
Primary, second, or investment
A bank-statement loan can fund the home you live in, a vacation place, or a rental — it's about how income is documented, not what you're buying.
One owner on your file
Owner Esther Buede reviews your statements personally and tells you where you stand before you ever formally apply.
Bank statement mortgage questions, answered.
How does a bank statement loan calculate my income?
An underwriter totals the eligible deposits across your statements, removes transfers and non-income items, and averages the result. Personal-account programs typically count a larger share of those deposits as income; business-account programs apply an expense factor. The exact treatment varies by lender — that's where a broker helps you land in the most favorable one.
How many months of statements do I need?
Most bank-statement programs use 12 to 24 months of personal or business statements. A 24-month window can help if your income is seasonal or uneven, since it smooths out the highs and lows. We'll tell you which window presents your income best.
Do I need tax returns or W-2s?
No — that's the whole point. A bank-statement loan documents income through your actual deposits instead of tax returns or W-2s. It's built for self-employed borrowers whose returns understate their true cash flow because of business write-offs.
Who is a bank statement mortgage best for?
Self-employed business owners, freelancers, and 1099 earners with strong, consistent deposits but tax returns that don't reflect their real income. If your bank account tells a better story than your tax return, this is usually the program to look at first.
Can I use a bank statement loan to buy a rental?
Yes. Bank-statement programs can be used for a primary home, a second home, or an investment property. If you'd rather qualify on the property's rent than your own income, ask us about a DSCR loan instead — we shop both.
Can I do a cash-out refinance with a bank statement loan?
Yes — bank statement programs generally support cash-out refinancing, using the same deposit-averaging income calculation as a purchase. Cash-out ceilings typically run below purchase ceilings on the same program, and reserve expectations step up at higher loan-to-values or larger loan sizes. We shop the panel to find where your file lands.
Can the loan close in my LLC's name?
On an owner-occupied home, generally no — a primary-residence bank statement loan generally closes in your personal name, even when your LLC's statements document the income. On an investment property, entity vesting is routine in non-QM lending and a minority of bank-statement programs extend it there, with personal guaranties from the LLC's members standard. Ask us which lane fits your purchase.
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See what your deposits qualify you for.
One call with the owner — no queue, no pressure. Bring 12–24 months of statements and we'll tell you honestly where you stand and which program reads your income best.