Bank Statement Loans
Self-employed mortgage. Alt-doc loans that qualify on deposits, not tax returns. Zack Cervantes · NMLS #502342.
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A bank statement loan allows self-employed borrowers to qualify for a mortgage using 12-24 months of bank deposits instead of tax returns — so your write-offs don't reduce your qualifying income. Business owners, freelancers, and 1099 contractors with 2+ years of self-employment history are eligible. Zack Cervantes (NMLS #502342) at New American Funding closes bank statement loans in 48 states.
How Bank Statement Loans Work
Instead of using your tax return (which is reduced by all your write-offs), bank statement lenders look at your actual deposits over the last 12-24 months.
They calculate an average monthly deposit and use that as your qualifying income.
This means the business owner depositing $25K/month but showing $8K on their tax return can actually qualify based on their real income.
Who Qualifies
- ✓Business owners with 2+ years of self-employment
- ✓1099 contractors and freelancers
- ✓Gig economy workers with consistent income
- ✓Borrowers with high write-offs that reduce tax return income
- ✓Business owners with complex or multiple income streams
Program Highlights
Documentation
12-24 month bank statements
Min Credit Score
660+
Max Loan Amount
Up to $3M
Down Payment
As low as 10%
Self-Employed
2+ years required
Property Types
Primary, 2nd home, investment
Self-employed real estate investor? DSCR loans also skip the tax return → Qualify on the rental property's cash flow instead of your 1040.
Bank statement loans are one type of non-QM loan. See the full non-QM product shelf.
Self-Employed Mortgage
A self-employed mortgage is any home loan written for a borrower whose income shows up on bank deposits, K-1s, or 1099s rather than on a W-2. Bank statement loans are the most common self-employed mortgage product because they qualify on actual deposits — not on the number the CPA optimized down on the tax return.
Alt-Doc Mortgage
Alt-doc mortgage is the umbrella term for any mortgage that uses alternative income documentation in place of tax returns or W-2s. Bank statements, profit and loss statements, 1099 forms, and asset depletion calculations are all forms of alt-doc that qualify self-employed borrowers under non-QM loan programs.
S-Corp Owner Mortgage
S-corp owners typically pay themselves a small W-2 salary plus K-1 distributions. Conventional underwriters often use just the W-2, ignoring distributions. Bank statement loans bypass that by using actual deposits — both salary and distribution — to calculate qualifying income.
LLC Owner Mortgage
LLC owners (single-member or partnership) qualify on personal or business bank statements. Pass-through income on the K-1 is verifiable, but bank statement deposits are usually the cleanest path. Two years of LLC operating history is the standard minimum.
1099 Contractor Mortgage
1099 contractors qualify using either bank statement averaging or a 1099-only program that uses the gross 1099 amount as qualifying income. Two years of 1099 history is typical, though some programs accept one year with strong compensating factors.
Freelancer Home Loan
Freelancers, gig workers, and creators with irregular monthly deposits use 12 or 24 months of bank statements to smooth income across the qualifying period. Ridesharing, content creation, consulting — anything that lands as deposits — counts.
Bank Statement Loans by State
Bank Statement Loans California
California is the largest self-employed mortgage market in the country. High home prices and a deep small-business base — agencies, consulting firms, healthcare practices, real estate teams — make bank statement loans the default product for California self-employed borrowers.
Bank Statement Loans Texas
Texas business owners benefit from no state income tax and strong small-business growth in Austin, Dallas, and Houston. Bank statement loans close cleanly here, especially for service businesses with high deposits and aggressive write-offs.
Bank Statement Loans Florida
Florida self-employed mortgages run heavy in tourism-driven service businesses, healthcare practices, and small construction firms. No state income tax keeps net deposits high relative to taxable income, which strengthens DSCR-style program math.
Bank Statement Mortgage — Qualify on Deposits, Not Tax Returns
A bank statement mortgage is exactly what the name suggests — a home loan that qualifies you using bank statements instead of tax returns.
12 or 24 months of deposits. Averaged. That's your qualifying income.
For self-employed borrowers who write off business expenses, this is the most direct path to homeownership. Your tax return shows $60k. Your bank account shows $350k. A bank statement mortgage uses the real number.
Bank statement mortgage loan requirements:
- 12-24 months business or personal bank statements
- Credit score 620+ (680+ for best rates)
- 10-20% down payment
- 6-12 months reserves
Rates run 0.5-1.5% above conventional. For most self-employed borrowers, that premium costs less than showing more income on their tax return.
Stated Income Loans — The Alt-Doc Alternative
If you've been searching for "stated income loans," here's what you need to know: the old-school stated income loan — where you literally just wrote down a number and the lender took your word for it — doesn't exist anymore. Those went away after 2008 for good reason.
But the need didn't go away. Business owners, freelancers, and 1099 contractors still have the same problem: tax returns that don't reflect what they actually earn.
That's where bank statement loans come in. Think of them as the modern, compliant version of stated income. Instead of just stating a number, you show 12-24 months of bank deposits. The lender calculates your income from what's actually hitting your account.
It's a smarter system. You still get to qualify on your real income rather than your tax return income — but there's actual documentation behind it. I help self-employed borrowers navigate this every single day.
The rates run a bit higher than conventional (usually 0.5-1.5% more), but when your tax return shows $60K and your bank statements show $180K, the math speaks for itself.
Self Employed Home Loans Without Tax Returns
Here's the deal: if you're self-employed, your CPA is doing their job by minimizing your taxable income. But that same tax return that saves you money in April can wreck your mortgage application.
Bank statement loans solve this by looking at 12 or 24 months of actual deposits instead. No tax returns, no W-2s, no jumping through hoops to explain your write-offs to an underwriter.
You can use personal bank statements or business bank statements — your choice. Personal statements are simpler since the deposits are treated as income directly. Business statements work too, but lenders typically apply an expense factor (usually around 50%) to account for business costs.
How do lenders calculate your income? They add up your deposits over the statement period and divide by the number of months. That average monthly deposit becomes your qualifying income.
For a lot of my self-employed clients, this approach qualifies them for 2-3x more than their tax return would. It's not a loophole — it's just a more accurate picture of what you actually earn.
No Doc Loans — What's Still Available in 2026
True "no doc" loans — where you didn't provide any financial documentation at all — haven't existed since the post-2008 regulatory overhaul. And honestly, that's probably a good thing.
What does exist in 2026 are programs that feel close to no-doc for the right borrower. Bank statement loans skip tax returns entirely. Asset depletion loans qualify you based on liquid assets. DSCR loans qualify on property income alone.
The common thread? Each program uses a specific, alternative form of documentation instead of the traditional W-2 and tax return stack. Less paperwork, same result — you get the mortgage without the headache.
Not sure which alt-doc path fits your situation? Call me and I'll sort it out in about two minutes.
Self Employed Mortgage FAQ
Bank Statement Loans by State
Licensed in 48 states. Pick yours for state-specific self-employed loan details.
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