No tax returns, no W-2s — qualify based on actual cash flow. Perfect for self-employed borrowers with significant write-offs who deserve more home.
How It Works
Bank statement loans are designed for self-employed borrowers who don't fit traditional lending criteria. Rather than W-2s and tax returns, we average your monthly bank deposits to calculate qualifying income.
If you have significant business write-offs that reduce your tax liability but don't reflect your true cash flow, a bank statement loan bridges that gap — letting your actual deposits speak for themselves.
Tax returns often show low net income after deductions. Bank statement loans look at your real cash flow instead — giving you access to the loan amount your business actually supports.
Program Comparison
Choose the option that best reflects your income history and business growth.
| Feature | 12-Month | 24-Month |
|---|---|---|
| Income Averaging | Most recent 12 months of deposits | Most recent 24 months of deposits |
| Best For | Growing businesses, recent startups, improving income | Established self-employed, stable income |
| Qualifying Income | Higher (one year of growth counted) | Averaged over longer period |
| Loan Amounts | Potentially higher if recent growth strong | More conservative, historical average |
| Timeline | Faster — only 1 year of history required | Requires 2 years of self-employment |
| Common Scenario | Consultant with growing client base | Established contractor with steady revenue |
Statement Types
We work with both — here's how each is calculated toward your qualifying income.
All deposits on personal checking accounts count toward qualifying income. No expense ratio applied — every dollar of deposit counts.
100% of deposits countedBusiness deposits are multiplied by an expense ratio (typically 50%) to estimate net income. Higher gross revenue needed to qualify.
~50% of deposits countedKey Benefits
Skip months of tax return prep. We use bank deposits instead, streamlining your application significantly.
Self-employed income from deposits qualifies. No employer verification needed — your business speaks for itself.
Qualify for more when your actual cash flow exceeds your tax-reported net income.
Finance your primary residence, vacation home, or rental property with the same streamlined process.
Simplified documentation means quicker underwriting — 21-day closings are achievable with complete bank statements.
Blended income options available — co-borrowers with W-2 income can be combined with bank statement income.
Get a personalized income analysis from Alex. Takes minutes — no credit pull required.
Get My Rate Call (714) 470-6091Requirements
Eligible Properties
Primary, second home, and investment properties.
Who We Help
Designer, writer, or consultant who deducts home office, equipment, and travel. Bank deposits show real income that tax returns understate.
Owns an S-Corp or LLC with payroll and operating expenses. Tax returns look lower than actual cash flow.
Rental owner whose depreciation and expense deductions reduce taxable income but maintain strong positive cash flow.
CPA, attorney, or engineer with seasonal or project-based income showing clearly in bank deposit history.
Delivery driver, rideshare, or platform-based earner with consistent deposits but minimal provable W-2 income.
One borrower qualifies on bank statements while a co-borrower uses W-2 income — we combine both for higher loan amounts.
Our Process
From first call to keys in hand — here's how we close in 21 days.
12–24 months of personal and/or business bank statements to establish your deposit history.
We average deposits and apply expense ratios to calculate your qualifying income accurately.
You receive a pre-approval letter showing your loan amount and terms — ready to make an offer.
Complete underwriting and final approval. Closing typically occurs within 21 days.
FAQ
Tell Alex about your situation. No obligation, no hard sell — just expert guidance from a licensed professional with 28+ years of experience.
Senior Mortgage Loan Officer · Optimum First Mortgage
NMLS #335813 | CA DRE #01192601
Find the perfect mortgage solution tailored to your financial situation and goals.
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