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 · 5 min read

Bank Statement and No-Doc Loans for Self-Employed Investors

The short answer

Bank statement and no-doc loans qualify you on cash flow or the asset, not tax returns. How each works and which fits a self-employed real estate investor.

A bank statement loan qualifies a self-employed borrower on the cash flow shown in their bank deposits rather than on tax returns. A no-doc investor loan goes a step further and qualifies on the asset itself. Both exist because write-offs and a complex return can make a strong borrower look weak on paper.

Why tax returns work against investors

Smart investors and business owners write off everything they legally can, which lowers taxable income. A conventional lender reads that low number and says no, even when real cash flow is strong. Bank statement and no-doc programs look past the return.

How does a bank statement loan qualify you?

You provide 12 to 24 months of business or personal bank statements.
The lender averages your deposits to establish real cash flow.
No W-2s, no tax returns, no pay stubs.

When no-doc makes more sense

For pure investment property, qualifying on the asset (its value or its rent, as with a DSCR loan) can be cleaner than documenting income at all. The right path depends on whether the strength is in your cash flow or in the deal.

Frequently asked

What is a bank statement loan?

A bank statement loan qualifies a self-employed borrower using 12 to 24 months of bank deposits to show real cash flow, instead of tax returns or W-2s.

Is a no-doc loan really no documentation?

Not literally. No-doc means no income documentation; the loan qualifies on the asset (value or rent). You will still verify identity, the entity, the property, and reserves.

Who should consider a bank statement loan?

Self-employed investors, business owners, and anyone whose tax returns understate their true income because of write-offs.

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 Rental / DSCR Conventional Investment

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DSCR Loan vs Hard Money Loan DSCR Loan vs Conventional Loan

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