Bank Statement Mortgage Programs (No Tax Returns Required)
If you’re self‑employed, a business owner, or earn income that doesn’t show up well on tax returns, a Bank Statement Mortgage may be the solution. These programs allow qualified borrowers to use 12 or 24 months of bank statements instead of tax returns to qualify for a home loan.
Quick Highlights
- No tax returns required (program specific)
- Qualify using 12 or 24 months of bank statements
- Loan amounts up to $5,000,000
- Up to 90% loan‑to‑value on qualifying scenarios
- Designed for self‑employed and business owners
What Is a Bank Statement Mortgage?
A bank statement mortgage is a non‑traditional home loan designed for borrowers whose true income is better reflected by cash flow and deposits rather than taxable income. Instead of analyzing tax returns, lenders review bank statements to determine an average monthly income.
This approach helps borrowers who:
- Write off significant business expenses
- Have variable or seasonal income
- Own businesses or are paid via deposits rather than W‑2 wages
Who This Program Is Best For?
- Self‑employed borrowers
- Business owners
- Independent contractors
- Entrepreneurs
- Commission‑based earners
Some programs may allow less than two years of self‑employment and may allow first‑time homebuyers, depending on the scenario.
How Income Is Calculated
Income is calculated using 12 or 24 months of personal or business bank statements.
For business bank statements, lenders typically apply an expense factor to account for operating costs. In some cases:
- Expense factors may be as low as 15%
- A borrower‑prepared expense letter may be acceptable
- A CPA or accountant letter may not be required depending on the business type
This method allows lenders to evaluate real cash flow rather than taxable income alone.
Frequently Asked Questions
Do I need tax returns?
Some bank statement programs do not require tax returns.
Do I need a profit and loss statement?
Certain programs do not require a P&L.
Can I use personal bank statements instead of business statements?
Yes, depending on how income is deposited and documented.
Program Features & Options
Loan Amounts & Financing
- Loan amounts up to $5,000,000
- Up to 90% LTV on qualifying loans
- Interest‑only options available on select programs
Credit & Qualification
- Minimum credit score requirements vary by program
- Debt‑to‑income ratios up to 50% on qualifying scenarios
- Common‑sense underwriting approach
Occupancy & Property Types
- Primary residences
- Second homes
Documentation Flexibility
- No tax returns required
- No profit and loss statement required on select programs
- Bank statements can be reviewed before full loan submission for pre‑qualification
Benefits of a Bank Statement Mortgage
- Qualify without traditional tax returns
- Better reflects true earning power for self‑employed borrowers
- Flexible underwriting guidelines
- Faster pre‑qualification when bank statements are reviewed upfront
What You’ll Typically Need
While documentation varies by program and borrower profile, most bank statement loans require:
- 12 or 24 months of bank statements (personal or business)
- Government‑issued ID
- Credit report
- Asset and reserve documentation
- Expense factor or explanation if using business bank statements
Pro Tip: Submitting bank statements early can help determine eligibility before a full loan application is submitted.
Down payment requirements vary, but some programs allow as little as 10% down.
Disclaimer
This page is for educational purposes only and does not constitute a commitment to lend. Program availability, rates, terms, and guidelines are subject to change and vary by borrower profile, property type, and lender approval.