Statement review
Twelve or twenty four months of deposits, reviewed before any credit is pulled.
Income that is not a salary
Self employed and bank statement
Twelve or twenty four months of deposits instead of tax returns
The short version
Founders, consultants and contractors write off everything they legally can, and then a lender reads the bottom line of a tax return and says no. Bank statement loans qualify you on deposits instead, with an expense factor applied. The rate is higher than a conventional loan, and for a lot of self employed buyers it is the difference between owning and renting.
Tax write offs stop working against you
Down payments from 10% on stronger credit profiles
Available for primary homes, second homes and rentals
A clear path back to conventional pricing later
What you get on this program
The work that sits behind the rate quote.
A deposit analysis
Before you apply I run your statements and tell you the qualifying income, so there is no surprise at underwriting.
Expense factor negotiation
The factor is often set by your CPA letter. A well written letter can move qualifying income meaningfully.
Profit and loss option
Some desks accept a CPA prepared profit and loss statement instead of a full statement analysis.
An exit plan
Two clean tax years later, we look at refinancing into conventional pricing.
How this one runs
The same sequence every time, adapted to the program.
Structure
We pick personal or business accounts, and the factor, to get the best qualifying income.
Approval
Full underwriting approval before you write offers, which matters even more on non agency files.
Close
Typically 25 to 30 days.
What moves your pricing
Four levers underwriting looks at on this program, and what each one is worth.
| Factor | What it means for you |
|---|---|
| Deposit consistency | Steady monthly deposits qualify better than a few large ones. Transfers between your own accounts are excluded. |
| Business ownership | Usually 25% or more ownership, documented by a CPA or business license. |
| Credit | Pricing improves sharply at 700 and again at 740. |
| Reserves | Expect six months of payments in reserve on most non agency files. |
Programs people compare this with
Asset depletion loans
Qualify on portfolio balances rather than paystubs
- Portfolio based qualifying
- Retirement and brokerage accounts
- No employment required
6.750%sample rate, 6.901% APR
RSU and equity income
Vesting schedules counted the way underwriting wants to see them
- RSU, ESPP and bonus income
- Public and pre IPO employers
- Portfolio backed down payments
6.250%sample rate, 6.341% APR
Cash out refinance
Use built up equity for a remodel, tuition or the next property
- Up to 80% loan to value
- Remodel and ADU funding
- Second position alternatives
6.500%sample rate, 6.678% APR
Self employed and bank statement: the questions I get
Straight answers, including the parts other lenders leave out.
Still stuck on something
Call (408) 555-0124 or book a 20 minute slot. No documents needed for the first conversation.
Commonly 50% to 90%, depending on the expense factor supported by your CPA and the type of business. I will run the math on your real statements before you commit.
Usually about one percentage point above conventional pricing as a sample comparison. On a file where tax returns will not work, it is the price of getting in now.
Yes. Once you have two years of returns that support the income, we look at moving you into conventional or jumbo pricing.
Run your own numbers with me
Twenty minutes on self employed and bank statement and whether it is really the right tool for your situation.
Sample figures across this site are illustrations, not quotes. Equal Housing Opportunity.