How does a bank statement loan work if I'm self-employed?
Short Answer
A bank statement loan lets you qualify on the deposits in your business or personal bank statements instead of your tax returns. It's made for self-employed buyers, 1099 earners, and business owners whose write-offs make their income look smaller on paper. You can buy, refinance, or take cash out on a primary home, second home, or rental. Ask me for current terms.
What is a bank statement loan?
A bank statement loan is a mortgage that looks at the money that actually lands in your account. Instead of your tax returns, the lender reviews your bank statements and works out your income from your deposits.
In my experience, this comes up often in Pinellas. A contractor in Largo or a salon owner in St. Petersburg earns good money. But after write-offs, the tax return shows a much smaller number. A regular loan reads the tax return. This loan reads the bank account.
Who is a bank statement loan for?
- Self-employed buyers and business owners
- 1099 earners, like real estate pros, rideshare drivers, and consultants
- Commission earners whose income moves around
- Buyers with strong savings or investments but uneven income
- First-time buyers who are self-employed
Which ways can I qualify?
| Option | What the lender looks at |
|---|---|
| Bank statements | Deposits over a set number of months |
| 1099 income | Your 1099 forms instead of full tax returns |
| Profit and loss statement | A P&L for your business |
| Asset-based | Savings and investments you already have |
| Full documentation | The standard paperwork, when that helps you |
What can I use it for?
You can buy a home, refinance, or take cash out. It works for a primary home, a second home, or a rental. Condos, townhomes, and 1 to 4 unit properties can fit, including some non-warrantable condos. Longer terms and interest-only options may be available. Ask me for current terms.
How do I get started?
- Apply at /apply and tell me you're self-employed.
- Pull your recent business and personal bank statements.
- I figure out which way of qualifying shows your income best.
- You get a pre-approval that matches the homes you want to see.
- Then we shop with a letter that holds up.
What should I watch for?
These loans can cost more than a regular loan. Down payment and credit needs depend on your file. Sometimes a regular loan is the better deal, so I check both. You can see all the options on Financing, and my guide to Florida mortgage loan programs covers the rest.
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Jonathan Loescher, Realtor and Mortgage Loan Originator (SL3546365, NMLS 2621894)
Mortgage loans are offered through PMF, Inc., NMLS 1980. Real estate services are offered through Realty of America. They are separate companies, and you don't have to use both. Equal Housing Opportunity. Education only. This is not a commitment to lend. All loans are subject to credit approval, underwriting, and property eligibility. Not all applicants will qualify. Any loan approval is conditional until all underwriting conditions are met. Programs, rates, terms and conditions may change without notice.