No tax returns, no W-2s — qualify based on actual cash flow. Perfect for self-employed borrowers with significant business deductions.
Bank statement loans are designed for self-employed borrowers who don't fit traditional lending criteria. Instead of relying on tax returns or W-2s, we average your bank deposits over 12–24 months to calculate qualifying income. This method reflects your actual cash flow, not your tax-minimized net income.
If you have significant business write-offs that reduce your tax liability but don't reflect your true earning capacity, bank statement loans let you qualify based on real dollars in your account. We work with borrowers—freelancers, small business owners, real estate investors, gig workers—who have strong deposit history but non-traditional income documentation.
| 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 (after 1 year), improving income | Established self-employed, stable or declining income |
| Qualifying Income | Higher (one year of growth counted) | Lower (averaged over longer period, smooths spikes) |
| Loan Amounts | Potentially higher if recent growth strong | More conservative, based on historical average |
| Qualification Timeline | Faster (only 1 year of history required) | Requires 2 years of self-employment history |
| Common Scenario | Consultant with growing client base | Established contractor with steady revenue |
Skip months of tax return preparation. We use bank deposits instead, streamlining your application.
Self-employed income from deposits qualifies. No employer verification needed.
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 and 21-day closings are achievable.
Minimum two years of self-employment history required. We review 24 months (or 12 months for recent growth) of bank statements.
Minimum FICO score of 620. Higher scores may qualify for better terms and rates.
Down payment typically ranges from 10% to 20%, depending on loan amount and property type.
Liquid reserves (savings, investments) covering 2 to 6 months of mortgage payments and property taxes.
No recent bankruptcies, foreclosures, or short sales. Older credit issues may be considered.
Consistent deposits over the analysis period. Recent business interruption may delay approval.
We finance a wide range of residential properties for primary, second home, and investment purposes.
Graphic designer, writer, or consultant who deducts home office, equipment, and travel. Bank deposits exceed tax-reported income significantly.
Owns a S-Corp or LLC with payroll and operating expenses. Traditional self-employment income on tax return understates cash flow.
Rental property owner whose depreciation and expense deductions reduce taxable income but maintain strong cash deposits.
CPA, attorney, engineer, or other professional with seasonal or project-based income showing up clearly in bank deposits.
Delivery driver, rideshare, or platform-based income earner with consistent deposits but minimal profit after expenses on tax return.
We collect 12–24 months of personal and/or business bank statements to establish deposit history.
We average deposits and apply any expense ratios to calculate your qualifying income accurately.
Upon approval, you receive a pre-approval letter showing your loan amount and terms—ready to make an offer.
Complete underwriting and final approval. With streamlined documentation, closing typically occurs within 3 weeks.
Excellent—we blend income types. One borrower can qualify on bank statement deposits while the co-borrower uses W-2s, employment verification, or other traditional documentation. This often increases total qualifying income and improves approval odds.
Yes. If you deposit business revenue to both personal and business accounts, we can combine deposits from both to calculate total qualifying income. Business deposits typically use a 50% expense ratio while personal deposits count 100%.
We use the lower 12-month average to be conservative. If there's a documented business reason for decline (temporary market downturn, planned business transition), we can discuss it with underwriting. Strong reserves help offset income concerns.
Pre-approval typically takes 3–5 business days. Full underwriting and conditional approval usually take 7–10 days. Once conditions are satisfied and final approval is issued, closing can occur within 3–7 days, for a total timeline of 21 days or less.
Senior Mortgage Loan Officer
Optimum First Mortgage
NMLS #335813 | CA DRE #01192601