Bank Statement Loan — Self-Employed
Your tax return is not the whole story. We know that.
If you are self-employed or work 1099, your tax returns likely show far less income than you actually earn — because deductions exist for a reason. A bank statement loan qualifies you on deposits, not what's left after write-offs.
Available for self-employed borrowers, business owners, and 1099 contractors throughout Northern Colorado.
How bank statement loans work.
Income documentation built around cash flow — not taxable income.
No Tax Returns Required
Bank statement loans use 12 to 24 months of personal or business bank statements to document income — not Schedule Cs or 1040s. For borrowers who write off significant expenses, this produces a much higher qualifying income than tax returns would show.
Personal or Business Statements
Lenders accept either personal bank statements (100% of deposits counted) or business statements (with an expense factor applied). The right choice depends on how your income flows and how your business accounts are structured.
Primary, Second Home, and Investment
Bank statement loans are available for primary residences, second homes, and investment properties. They are not limited to purchase — refinances and cash-out options are also available.
Competitive Rates for Strong Profiles
Bank statement loan rates are higher than conventional rates due to the non-QM classification, but strong credit scores, significant down payments, and healthy deposit history compress the premium significantly.
For Medical Professionals
Locum tenens, private practice, and 1099 earners.
Medical professionals who earn locum tenens income, run their own practice, or work as independent contractors often face the same documentation challenge as any self-employed borrower. A bank statement loan is worth comparing against physician loan programs — depending on your income structure, it may produce meaningfully better qualifying numbers.
Compare: Physician loan →Frequently asked questions.
What is a bank statement loan?
A bank statement loan is a non-QM mortgage that uses 12 to 24 months of bank statements as proof of income instead of traditional W-2s and tax returns. It is designed for self-employed borrowers, business owners, and independent contractors whose tax returns significantly understate their actual income due to deductions and write-offs.
Who benefits most from a bank statement loan?
Bank statement loans are most valuable for borrowers whose reported taxable income — after legitimate business deductions — is significantly lower than their actual cash flow. This includes business owners, self-employed professionals, real estate investors with large depreciation deductions, and 1099 contractors. Medical professionals working locum tenens, running their own practice, or earning 1099 income often fall into this category.
How does income get calculated on a bank statement loan?
For personal bank statements, lenders typically count 100% of average monthly deposits over the statement period. For business bank statements, an expense factor is applied — usually 50% to 75% of deposits are counted as income, depending on the industry and the lender's guidelines. The higher your consistent monthly deposit volume, the stronger your qualifying income.
What credit score is needed for a bank statement loan?
Most bank statement loan programs require a minimum credit score of 620 to 680, with the best rates available at 720 and above. Down payment requirements also affect rate — typically 10 to 20% down depending on the lender and loan amount. Stronger credit and larger down payments significantly compress the rate premium compared to conventional products.
Can a locum tenens physician use a bank statement loan?
Yes. Locum tenens physicians often earn 1099 income with significant variability and expense deductions, which can make conventional or physician loan qualification difficult. A bank statement loan evaluates the actual deposits over the past 12 to 24 months, which typically reflects a stronger income picture than what appears on a tax return after deductions. It is worth comparing against physician loan programs to see which produces better terms for your specific income structure.
Let's see what your deposits actually qualify for.
A free 15-minute call to review your income structure, run the bank statement calculation, and compare it against other programs available to you.