Bank Statement Loan Requirements for Self-Employed Investors
Bank statement loans let self-employed investors qualify on deposits instead of tax returns. Learn the credit, down payment, and documentation requirements and how income is calculated.
A bank statement loan lets a self-employed investor qualify on deposits instead of tax returns. If your write-offs make your tax return understate what you actually earn, this program lets your real cash flow tell the story.
How income is calculated
Instead of a tax return, the lender averages your deposits over 12 to 24 months. Many programs apply an expense factor to estimate net business income, and you can usually choose business or personal statements, whichever presents your income most accurately.
What you need to qualify
- 12 to 24 months of business or personal bank statements
- A credit score around 660 or higher at many lenders (USAM Fund starts at 640, subject to underwriting), with the best terms above 700
- A down payment of roughly 20% to 30%
- Reserves to carry the property after closing
What you do not need
No tax returns, W-2s, or pay stubs. That is the entire point: a strong borrower with heavy write-offs is not punished for running a tax-efficient business.
Who it fits best
Self-employed investors, business owners, and 1099 or commission earners whose deposits tell a stronger story than their returns. If that is you, a bank statement loan is often the cleanest path to funding.
Frequently asked
Rates, leverage, and timelines mentioned in this guide are typical figures, subject to underwriting and market conditions. Not a commitment to lend. Nothing here is legal, tax, or investment advice.
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