How is private (hard money) lending different from a bank loan?

We are asset-based, which means we underwrite the property, its equity, and your business plan rather than your personal income and tax returns. That lets us fund in days instead of the 30 to 60+ days a bank takes, on short interest-only terms built around a flip, refinance, or sale. You pay a higher rate than a bank in exchange for speed, flexibility, and certainty on deals a bank cannot fund in time.

How fast can you close?

Fix and flip and residential bridge loans typically close in 5 to 7 days once we have your basics. Rental (DSCR) loans usually take 2 to 3 weeks because of the appraisal and rent verification, and SBA financing runs 30 to 90 days. The biggest variable is how quickly title, insurance, and your documents come together.

Do you check credit, and is there a minimum score?

We do run credit, but on our asset-based loans it carries far less weight than at a bank, and weaker credit can often be offset with a larger down payment or lower leverage. There is no personal income test on these programs. Credit matters most on long-term rental loans, where we look for a 640 minimum and it affects your rate and leverage.

Do I need to provide income documents or tax returns?

Generally no. Our bridge, fix and flip, and construction loans qualify off the property and your equity, and our DSCR rental loans qualify off the property's rent, so we do not ask for W-2s or pay stubs. We will want to see bank statements or proof of reserves. SBA and conventional investment loans are the exceptions and are fully documented.

What do you need to give me a quote?

Just the basics of the deal: the property address or type, the purchase price or current value, your rehab budget, the loan amount, and your exit plan. We can often pre-qualify you over the phone or through a short application and issue a proof-of-funds letter before you are even under contract.

What is a point, and how do your rates compare to a bank?

A point is an upfront fee equal to 1% of the loan amount, and origination on private loans typically runs 1 to 3 points. Our rates are higher than a bank, generally in the high single digits to low teens depending on the program, because the loans are short, fast, and flexible. When you compare offers, weigh the rate and the points together as your true cost of capital.

Bank Statement / No-Doc · 4 min read

Bank Statement Loan Requirements for Self-Employed Investors

The short answer

Bank statement loan requirements: qualify on 12-24 months of deposits, not tax returns. The credit score, down payment, and documents you need.

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 (USA Mortgage 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

How do lenders calculate income on a bank statement loan?

They average your deposits over 12 to 24 months, often applying an expense factor to estimate net business income. Personal and business statements can both be used depending on the program.

How many months of bank statements do I need?

Most programs require 12 to 24 months of business or personal bank statements. A longer, steadier deposit history generally supports better terms.

What credit score do bank statement loans require?

Many lenders want a score around 660 or higher; USA Mortgage's program starts at 640, subject to underwriting, with the best pricing above 700, plus a larger down payment, often 20% to 30%, than a fully documented loan.

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.

Related programs

Bank Statement / No-Doc Conventional Investment

Compare your options

Bank Statement Loan vs DSCR Loan

Ready to put this to work?

Get real terms, usually same day. No obligation, no hard credit pull to start.

Apply now Talk to us