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Bank Statement Loans
Mortgage Financing Using Your Actual Deposits, Not Your Tax Return
Bank Statement Loans
At SRK CAPITAL, we close bank statement loans every week for borrowers whose tax returns understate their real income.
A business owner depositing $15,000/month into their account but showing $5,000 on their Schedule C isn't unusual. Tax deductions do their job, but they create a gap between what you actually earn and what a conventional lender sees. Bank statement loans bridge that gap by qualifying you on deposits rather than reported income.
This loan solution You'll provide 12 or 24 months of personal or business bank statements. The lender averages your deposits to calculate qualifying income. No W-2s, no pay stubs, no tax returns. Credit scores start at 620, down payments at 10%, and rates run about 1-2% above conventional depending on your profile.
Ready to Get Started?
Find out what you qualify for based on your actual bank deposits.
Get Your Bank Statement Loan Rates
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Loan Details
LTV: 80.0% | Down: $100,000
Rates are actual rates based on current market conditions. Rates are subject to change without notice. Your actual rate may vary based on your credit profile and qualifications. SRK CAPITAL AI can make mistakes. Rates provided by SRK CAPITAL AI should not be considered a commitment to lend.
Bank statement loans are a non-QM product where income is verified through personal or business bank statements rather than traditional tax documentation. This product is designed for self-employed borrowers and may carry higher rates than conventional financing.
For complete mortgage disclosure information, please refer to our Terms of Service, Privacy Policy, and for SRK CAPITAL AI disclosure information, please refer to our AI Policy.
How Bank Statement Loans Work
Bank Statement Loans The lender pulls your last 12 or 24 months of bank statements and calculates average monthly deposits. Personal statements use 100% of deposits. Business statements typically use 50-70% to account for expenses (the exact percentage varies by lender). That calculated income is what you qualify on. A borrower with $20,000/month in business deposits at a 50% expense factor qualifies on $10,000/month of income. That's usually enough for a $500,000-$600,000 loan depending on debts, down payment, and the rate.
Income Verification
12-24 months of bank deposits replace W-2s and tax returns for qualifying income
Built For
Self-employed borrowers, business owners, freelancers, and real estate investors with 620+ credit
Bank Statement Loan Requirements
Personal vs. Business Statements
Traditional loans need pay stubs and tax returns, which isn't always helpful for the self-employed. With a Bank Statement Loan, you can use personal or business bank statements. The lender will look at the deposits and cash flow over the past year or two. They do this to look for a steady income pattern. This way, you won't need to rely on tax returns that doesn't show your actual earnings.
Tip: Avoid large cash deposits in the months before applying. Lenders need to source every deposit, and unexplained cash creates underwriting delays.
Loan Amounts and Terms
This type of loan offers competitive rates and flexible loan terms. Many of these loans are very close to what you would expect with a traditional conforming loan. Whether you're buying a new home, refinancing, or investing in real estate, these loans are available. The loan amount you will qualify for will depend on your monthly cash flow and credit profile.
Credit Score and Down Payment
Minimum credit score is 620, but most lenders prefer 660+. Below 700, expect rate adjustments of 0.5-1.0%. The sweet spot is 720 and above for the best pricing. Down payment starts at 10% for primary residences. Investment properties typically need 20-25%. A larger down payment (20%+) on a primary residence can offset a lower credit score and get you closer to conventional pricing.
Why Self-Employed Borrowers Use These Loans
Tax Deductions Work Against You on Conventional Loans
For business owners, tax deductions can lower your reported income. In turn, making it harder to qualify for a traditional loan. Bank Statement Loans let you use actual cash flow as proof of income, giving a realistic view of your earnings.
No Tax Return Documentation
The entire point is avoiding the tax return problem. You won't need W-2s, 1099s, or Schedule Cs. This matters most for borrowers with multiple income streams, businesses less than two years old, or anyone whose most recent tax year was unusually low. One bad year on your taxes shouldn't lock you out of buying a home when your bank account proves you can afford the payment.
Rate Premium Over Conventional
Even though these loans are non-traditional, they come with competitive interest rates and terms.
Want to see how your deposits translate to qualifying income?
Get a Free AnalysisCommon Questions About Bank Statement Loans
Either 12 or 24 months, depending on the program. 24-month programs generally offer better rates because they give the lender a longer income history. If your deposits have been increasing, a 12-month program might qualify you for more since it captures your recent higher income. Your loan officer can run it both ways to see which produces the better result.
Bank Statement Loans are a great choice for self-employed individuals, freelancers, consultants, or anyone who owns a business.
Expect rates about 1-2% above conventional, depending on your credit score, down payment, and loan amount. A 740 FICO borrower putting 25% down on a primary residence will get pricing much closer to conventional than a 660 borrower putting 10% down on an investment property. The gap has narrowed over the last two years as more lenders have entered this space.
Yes, and this is one of the biggest advantages over government-backed loans. You can finance rentals, second homes, and multi-unit properties (up to four units). Investment properties require a larger down payment (typically 20-25%) and the rate will be higher than for a primary residence.
Have a question about your specific situation?
Talk to a Loan Officer
Ready to See What You Qualify For?
Gather your last 12-24 months of bank statements (personal or business, whichever shows stronger deposits) and pull your credit report so you know where you stand. From there, a 15-minute call with one of our loan officers is enough to tell you what you qualify for, what rate to expect, and whether a bank statement loan or a different program makes more sense for your situation.
Reach out to SRK CAPITAL for a free consultation. Bring your last 12-24 months of bank statements and we'll calculate your qualifying income on the spot. If a bank statement loan isn't the best option, we'll tell you that too. With 200+ lender partners, there's usually a program that fits.
The SRK CAPITAL Difference
Consult
Talk to a loan officer who closes these loans regularly. We'll review your bank statements, credit profile, and goals to determine whether a bank statement mortgage is the right fit or if another program works better.
Compare
We run your scenario through multiple lenders to find the best rate and terms. Pricing on bank statement loans varies more across lenders than conventional loans do, so this comparison step can save you thousands over the life of the loan.
Close
Once you pick a lender and lock your rate, we handle the paperwork and coordinate with the title company. Most bank statement loans close in 30-45 days. The process is similar to a conventional loan after the income verification step is complete.
Browse by City
Bank Statement Loans in California
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Why Choose SRK CAPITAL?
At SRK CAPITAL, we work with more than 200 lender partners, and a significant number offer bank statement programs. That matters because pricing varies widely across lenders for these loans. One lender might price a 700-FICO borrower 0.75% higher than another for the same deal structure. Our loan officers run your scenario through multiple lenders to find the best combination of rate, fees, and terms. We focus on personalized mortgage solutions that align with each client's needs. We understand the challenges self-employed borrowers face in accessing favorable home financing. Our team specializes in helping people with non-traditional incomes achieve their real estate dreams.
Did you know? Our bank statement loan rates are often 0.50% lower than major lenders like Rocket Mortgage. Check today's competitive rates and see how much you could save.
Specialists in Self-Employed Lending
Bank statement loans make up a meaningful share of what we close. Our team knows which lenders accept the lowest expense factors on business statements, which ones allow co-mingled accounts, and which programs work best for borrowers with seasonal income swings. That knowledge directly affects how much you qualify for and what rate you get.
Financial Disclosure
The information provided on this page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates and terms are subject to change and may vary based on your individual financial situation. Please consult with a licensed mortgage professional at SRK CAPITAL for personalized guidance.
Explore Other Loan Options
Not sure if Bank Statement Loan is right for you? Compare with these alternatives.
1099 Loan
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P&L Statement Loan
Qualify using profit and loss statements for income
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- CPA-prepared P&L
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