Built for self-employed borrowers whose tax returns don't show their full earning power. Use 12–24 months of bank statements to qualify.
What it is
If you're self-employed, a 1099 contractor, or own a business, your tax returns probably don't reflect what you actually take home. Aggressive deductions help with taxes but make qualifying for a traditional mortgage harder — underwriters use your net reported income, not your gross.
Bank statement loans solve this. Instead of tax returns, lenders use 12 or 24 months of personal or business bank statements to calculate income. Andrew Kashella works with multiple bank-statement lenders so we can match the calculation method (deposit-based, P&L) to whichever shows your true cash flow best.
Who it's for
A few signs this program might be a strong fit. Even if you don't see yourself in this list, reach out — Andrew works with over 100 lenders and there's likely an option that fits.
Key Features
Use 12 or 24 months of personal or business bank statements as income proof.
Tax returns aren't required — great for borrowers with heavy deductions.
Down payments as low as 10% with strong credit; typically 15–25% standard.
Slightly higher than conventional but very competitive in the Non-QM space.
Deposit-based, P&L statement, or hybrid — whichever helps you qualify.
Available for primary, second home, and investment property.
Frequently Asked
Lenders typically average your monthly deposits over 12 or 24 months and apply an expense factor (often 50% for personal accounts, less for business). The result is your qualifying monthly income.
Typically 660+ for the best programs; some go down to 620 with larger down payment.
Yes, typically 0.5%–1.5% higher than conventional. The flexibility on income docs is worth it for self-employed borrowers who otherwise wouldn't qualify.
Often yes — once you have 2 years of strong tax returns showing your actual income, you can refinance to a lower-rate conventional or jumbo loan.
Andrew Kashella is here to help you compare options, understand the numbers, and figure out if this program is the right fit for your situation.
Andrew Kashella — NMLS #139171 | Innovative Mortgage Services, Inc. — NMLS #250769
Loan programs are subject to borrower qualification, credit approval, and property eligibility. Not all applicants will qualify. Additional terms and conditions may apply. Interest rates and loan programs are subject to change without notice. This is not a commitment to lend or extend credit.