You’re self-employed.
Get a mortgage without tax returns.
If you are self-employed, your tax returns probably understate what you actually earn. A bank statement loan qualifies you on 12 or 24 months of deposits instead — no W2s, no pay stubs, no returns. From 660 FICO and 10% down, for primary, second home or investment property.
Good write-offs. Bad mortgage application.
Every deduction that lowers your tax bill also lowers the income a conventional lender is allowed to count. Being good at running your business is exactly what disqualifies you.
Conventional loan
Income read from your tax returns
- Qualifies on net income after write-offs
- Two years of returns, W2s and pay stubs
- Depreciation and expenses cut your buying power
- A strong business can still be declined
Bank statement loan
Income read from your actual deposits
- Qualifies on deposits, not taxable income
- 12 or 24 months of personal or business statements
- No tax returns, W2s or pay stubs
- Keep writing off — it no longer costs you the loan
This is a Non-QM loan. Here is the tradeoff.
Bank statement loans sit outside the qualified-mortgage rules that govern conventional lending. That flexibility is the whole point — it is what lets an underwriter count your deposits instead of your tax returns. But it comes at a price: Non-QM loans generally carry higher rates than comparable conventional loans, because different investors hold them and price the added risk.
So the honest comparison is not bank statement versus conventional. It is bank statement versus not qualifying at all, or versus waiting two years while you file returns that show more income and pay more tax to do it.
For most self-employed buyers the maths favours buying now. For some it genuinely does not. I will run both and tell you which one you are — including when the answer is “wait.”
What would your deposits qualify?
A rough read on qualifying income from your average monthly deposits. Nothing here is an application, and no credit is pulled.
Illustrative only. Actual qualifying income depends on the statements themselves — transfers, refunds and non-business deposits are excluded, and the expense factor is set by underwriting, not by you. Subject to full credit and income review.
Guidelines, plainly stated.
These are Rate's published figures for the bank statement program. They are guidelines, not a decision — Non-QM files are underwritten by hand.
Minimum credit score
Rate cites a credit score of at least 660. Higher scores improve pricing and give you more room elsewhere in the file.
Minimum down payment
From 10% down. Investment properties and weaker credit profiles will generally require more.
Maximum DTI
A debt-to-income ratio of 50% or lower, measured against the income your statements support.
Months of statements
Twelve or twenty-four months, personal or business. We pick whichever presents your income most accurately.
Built for people who don't get a paycheck.
Rate lists small-business owners, the self-employed, doctors, lawyers, real estate agents and investors. In practice: anyone whose returns understate what they earn.
Business owners
You run an S-corp or LLC, pay yourself modestly and reinvest the rest. Your K-1 says one thing; your bank account says another. This loan reads the bank account.
1099 & commission
Real estate agents, contractors, consultants and sales professionals with income that swings by season. Twenty-four months smooths out a slow quarter.
Investors & professionals
Doctors, lawyers and property investors with complex returns and heavy depreciation. Available for owner-occupied, second home and investment property.
Four steps, done properly.
Non-QM underwriting is manual. That means a person actually reads your file — which usually works in your favour if the statements are clean.
Choose 12 or 24 months
We decide which period presents your income best, and whether personal or business accounts tell the stronger story.
Calculate qualifying income
Deposits are averaged across the period. Transfers, refunds and non-business deposits come out; business accounts carry an expense factor.
Structure the file
With income established we set loan amount, down payment and reserves, and confirm the 50% DTI ceiling is met.
Underwriting & closing
Expect questions about specific deposits. Answering them quickly is the single biggest thing that keeps a Non-QM file moving.
Nikola Spadijer
VP of Mortgage Lending · Rate · NMLS #2459410
Bank statement loans live or die on how the file is presented. Which months you choose, which accounts you use, and how cleanly you can explain an unusual deposit — those decisions are made before the application, and they change the outcome more than anything after it.
I work with buyers across Florida. If your returns are actually strong enough for a conventional loan, I will tell you that instead — it is almost always the cheaper option.
The things worth asking.
Including the ones that might point you somewhere cheaper.
A bank statement loan is a mortgage that qualifies you on deposits shown in 12 to 24 months of bank statements instead of tax returns, W2s or pay stubs. It is a Non-QM product, meaning it sits outside the qualified-mortgage rules that govern conventional loans — which is what allows the alternative income documentation. It exists because self-employed borrowers who write off aggressively often show a taxable income far below what their business actually produces.
Yes. Rate's bank statement program qualifies income from personal or business bank statements, so tax returns, W2s and pay stubs are not used to calculate your income. You will still document identity and assets, and the property still has to appraise. It is not a no-documentation loan — it is a different documentation, and underwriters read the statements closely.
It depends on which period makes your income look strongest and most consistent. Twelve months is easier to gather and works well if your recent year is your best. Twenty-four months smooths out seasonality and can help if one quarter was unusually weak. If your business grew sharply this year, 12 months usually qualifies you for more. We look at both before deciding.
Rate's published guidelines are a credit score of at least 660 and a down payment of at least 10%, with a debt-to-income ratio of 50% or lower. Those are guideline figures, not a guarantee. Non-QM files are underwritten by hand and the whole picture matters — reserves, deposit consistency and property type all factor in.
Deposits are totalled across the statement period and averaged monthly. Transfers between your own accounts, loan proceeds, refunds and one-off non-business deposits are removed. If you use business accounts, an expense factor is applied to reflect the cost of running the business, so the qualifying figure is lower than gross deposits. Personal accounts are often treated more favourably when your business pays you regularly.
Generally yes. Non-QM loans are priced above comparable conventional loans because they are held by different investors and carry different risk. The honest comparison is not bank statement versus conventional — it is bank statement versus not qualifying at all, or versus waiting two years to rebuild tax returns. Sometimes waiting is genuinely the better financial decision, and I will say so.
Yes. Rate's bank statement program is available for owner-occupied, second home and investment properties. Terms differ by occupancy — expect a larger down payment and tighter reserves on investment properties, so tell me the occupancy early because it changes the structure.
Small-business owners, the self-employed, doctors, lawyers, real estate agents, contractors, investors and others who do not receive a regular paycheck. In practice it is anyone whose tax returns understate what they really earn. If you are a W2 employee with straightforward income, a conventional loan will almost always be cheaper and you should take that instead.
In Florida it can. Beyond your own qualifications the building is reviewed — reserve funding, owner-occupancy ratio, litigation, and since the Surfside collapse, milestone inspection and structural reserve study status under Florida law. Non-QM lenders can be stricter on condo approval than agency lenders. If you are buying a coastal condo, tell me the building before you go under contract.
Large or irregular deposits you cannot source, commingling personal and business funds in one account, overdrafts, and gaps in the statement period. None of these are automatically fatal, but each one generates underwriter questions. The fastest files are the ones where the borrower can explain every unusual deposit on the first request. If a jumbo loan is what you actually need, that page is here.
Send me twelve months of statements.
That is genuinely all it takes to get a real answer. I will read them, tell you what income they support, and whether a bank statement loan is the right instrument — or whether something cheaper fits you better.