Bank Statement Loan Programs for Self-Employed Borrowers

There are 15 million Americans that are self-employed. Frequently, self-employed owned businesses have much more aggressive tax strategies than what is allowed W-2 employees. The result is that self-employed borrowers, often are unable to document their income through tax returns, but can document their income through deposits into their personal or business bank statements. While Non-Qualified and Non-Agency loan programs are constantly evolving please reference the below guidelines to assist you in determining if a Bank Statement Loan program is right for you:

Bank Statement Loan Program Guideline Overview

24 months business bank statements to 90% Loan-To-Value w/ no Mortgage Insurance
Document self-employed for 2 years
24 Months of Business Bank Statements
12-month personal bank statements to 90% Loan-To-Value w/ no Mortgage Insurance
Document self-employed for 2 years
Use 100% of deposits
Third party prepared expense statement required
2 years waiting period after a bankruptcy, foreclosure, short sale, or deed-in-lieu
No tax returns/transcripts required
Debt-To-Income above 35/43 considered with 660+ credit scores
Loans up to $3 million (minimum loan $150,000)
Credit scores starting at 620 (no multi-family properties)
First-time homebuyers allowed (subject to additional guidelines)

Getting Started is Easy

I have read and agreed to the Privacy Statement and Terms and Use policy.

Recent Bank Statement Closed Loan Scenario

Credit Scenario: Self-employed borrower’s CPA/Tax Accountant implemented an aggressive tax strategy, that resulted in a very low taxable income being reported. This precluded the use of tax returns to establish income. In lieu of tax returns the borrower’s monthly income of over $14,000 was established based of one-year average of personal bank statements
New Bank Statement Loan Request:
Purchase price: $469,000
Down payment: 30% down
Loan request: $328,300
Borrower's middle credit score: 721
Total debt-to-income ratio: 21%
Why the New Loan Made Sense:
Borrower is a first-time homebuyer with an excellent credit profile
Multiyear documented rent history of over $1,800
Multiple car loans in excess of $30,000 paid off with no late payments
Housing payment increased only $700

Equal Housing is sponsored by Millennial Home Loans, LLC. Millennial Home Loans, LLC NMLS #1221523; Licensed in Virginia as a Mortgage Lender License by the Department of Labor, Licensing and Regulation #21387, Pennsylvania as a Mortgage Broker License by the Pennsylvania Department of Banking #47955, and in Virginia as a Broker License by the Bureau of Financial Institutions #MC-6731. Copyright © 2018 All Rights Reserved. All mortgage loans are arranged through third (3rd) party providers.