Bank statement loans for self-employed borrowers

How it works

You provide bank statements for the period the lender requires. The lender adds up eligible deposits and calculates a monthly income. For business statements, the lender typically applies an expense factor, which some lenders let you support with a CPA letter or P&L. Transfers and one-time deposits are usually excluded.

That income is used to qualify you, along with your credit, down payment or equity, and reserves.

Who it fits

• Business owners and sole proprietors
• Freelancers, consultants and 1099 contractors
• Real estate agents, contractors and gig workers
• Borrowers with uneven or recently changed tax returns

What you can use it for

Primary homes, second homes and investment properties, for purchases, refinances and cash-out, depending on the lender.

Documents you may need

• Personal and/or business bank statements
• Proof of self-employment, such as a business license or CPA letter
• ID and credit authorization
• Asset statements for down payment and reserves
• Explanations for large deposits

Pros and cons

Pros: Qualify on cash flow, not taxable income; usually no tax returns to verify income; flexible on property type.

Cons: Pricing and terms can differ from conventional loans, so compare both if you could qualify either way; may need more down payment or reserves; deposits get close review; guidelines vary.

Why lender choice matters

Lenders calculate bank statement income differently, so the same statements can produce different qualifying incomes. That's why we compare programs from wholesale lenders.

For more detail, read our full guide to self-employed mortgages and bank statement loans.

How Turn Times helps

Turn Times is a licensed mortgage broker, not a lender. Instead of offering one company's products, we compare bank statement loan options from wholesale lenders and walk you through the differences in plain language. Here's how it usually goes:

1. Tell us your goal. A short conversation about the property, your timeline and what matters most to you.
2. We search pricing across wholesale lenders. We look at which wholesale lenders' guidelines may fit your situation, and a licensed loan officer compares their pricing and terms.
3. You choose. We lay out the trade-offs so you can pick the option that works for you.
4. We manage the loan to closing. Appraisal, title, conditions and updates along the way.

Every loan is subject to the lender's underwriting, and approval isn't guaranteed. We arrange loans for properties in California and Colorado.

Frequently asked questions