Bank statement loan
A mortgage that qualifies you on your deposits, not your tax return.
A bank statement loan uses 12 or 24 months of bank deposits to calculate qualifying income instead of tax returns. It's built for self-employed business owners whose write-offs make their taxable income look much smaller than their actual cash flow. If you've been told "you don't qualify" on a traditional mortgage because your Schedule C shows a low net, this program was designed for you.
What is a bank statement loan?
A bank statement loan is a non-qualified mortgage (non-QM) that qualifies self-employed borrowers using bank deposit history instead of tax returns, W-2s, or pay stubs. Lenders analyze 12 or 24 months of personal or business bank statements to establish qualifying income.
These loans are ideal for business owners, gig-economy workers, real estate agents, contractors, doctors, dentists, attorneys, and anyone whose tax returns understate the actual cash flow of the business.
How income is calculated
Personal bank statement programs typically count 100% of qualifying deposits as income. Business bank statement programs typically count 50% of deposits (assuming ~50% expense ratio), though some allow up to 85% with a CPA letter or P&L statement.
For example, a business owner with $30,000/month in average business deposits over 24 months could qualify on roughly $15,000/month of income under a standard 50% business bank statement program — even if their tax return shows $80,000/year net.
What documentation is required
12 or 24 months of bank statements (personal or business, depending on program). Two years of self-employment history (business license or CPA letter typically required). Valid ID and credit report. No tax returns, W-2s, or pay stubs required.
Key benefits
- No tax returns, W-2s, or pay stubs required
- Qualifies on 12 or 24 months of bank deposits
- Ideal for self-employed borrowers whose write-offs understate income
- Available on purchase and refinance
- Fixed and adjustable rate options
- LLC ownership allowed on many programs
Who this loan fits best
- Self-employed business owners with strong deposits but low reported taxable income
- Real estate agents, contractors, consultants, and freelancers
- Gig-economy workers with 2+ years of consistent income
- Anyone whose Schedule C or K-1 makes them look "unqualified" on a Conventional loan
Estimate your monthly payment
Bank Statement Loan payment calculator
Estimate only. Actual rate, taxes, insurance, and mortgage insurance depend on your specific loan and property. Belong Lending confirms your exact payment at pre-approval.
Serving Detroit and surrounding Michigan communities
Belong Lending helps borrowers with Bank Statement Loan loans across Detroit, Troy, Southfield, Ann Arbor, Flint, Livonia, Warren, Sterling Heights, Farmington Hills, Novi, Rochester Hills, Dearborn, and beyond — plus additional coverage throughout Wayne County, Oakland County, Macomb County, Washtenaw County, Livingston County, Genesee County. We also lend on eligible properties in Ohio, Florida, Georgia, and Texas.
Frequently asked questions
What is a bank statement loan?
A bank statement loan is a non-QM mortgage that uses 12 or 24 months of bank deposits to calculate qualifying income, instead of tax returns. It's designed for self-employed borrowers whose tax returns don't reflect their actual cash flow because of legitimate business write-offs.
How is my income calculated on a bank statement loan?
Personal bank statement programs typically count 100% of qualifying deposits. Business bank statement programs typically count 50% of deposits (some allow up to 85% with additional documentation like a CPA letter or P&L). Belong Lending calculates your qualifying income across multiple lender programs to find the best fit.
What credit score do I need for a bank statement loan?
Most bank statement programs require a minimum credit score of 660. Scores of 700 or higher generally unlock the best pricing. Some programs are more flexible with high reserves and strong deposit history.
How much down payment do I need?
Most bank statement programs require 10% – 20% down. Larger down payments unlock better pricing and higher loan amounts.
Can I use a bank statement loan for investment property?
Yes. Many bank statement programs allow investment property purchases. That said, DSCR loans are often a better fit for investment properties because they qualify on rental income rather than borrower income — Belong Lending helps you compare both.