Qualify on the deposits that actually land in your account — not on the net figure at the bottom of a tax return.
If you are self-employed, your tax return is prepared to show the smallest income the law allows. That is sound tax planning and terrible mortgage qualifying — the same deductions that save you money in April are what a conventional underwriter subtracts from your income in June.
A bank statement loan sidesteps the problem by looking at deposits rather than net profit. Twelve or twenty-four months of statements replace the tax returns entirely.
Qualifying deposits across the statement period are totalled, then an expense factor is applied to arrive at a monthly income figure.
Where the expense factor comes from. It depends on your industry and whether the statements are personal or business accounts. A service business with low overhead carries a different factor than one carrying inventory or payroll. A CPA letter documenting your actual expense ratio can improve the figure used.
Average over the most recent year only. This helps when your business grew recently, or when an earlier year was weak enough to drag a longer average down.
Average across two years, which evens out seasonality and one-off months. For a stable business this usually produces the stronger and more defensible number.
Bank statement financing is not investor-only. It works for the house you live in.
Finance investment property when your returns understate what the business actually earns.
Built for borrowers with real income and complicated returns.
Program parameters shown are current as of publication and are subject to change. All financing is subject to credit approval, property review and program availability.
No obligation — find the right fit for your situation.