A Bank Statement Loan provides a way for the self-employed to qualify for a mortgage without providing tax returns to document income.

What is a Bank Statement loan?

Bank Statement loans are mortgage loans that use bank statement deposits to determine qualifying income.

Traditionally, to apply for a mortgage loan, borrowers must provide paystubs and W2’s from the past two years of employment.  But if you are self-employed or own your own business, you don’t have W2’s or paystubs.

With a Bank Statement loan, only the bank statements of the borrower is used to determine if they can produce sufficient income for loan approval.

How do Bank Statement loans work?

With Bank Statement loans, the qualifying income is determined by averaging deposits over a 12 or 24 month period.  This results in an amount that is used as the qualifying monthly income.