ServicesBank Statement Loans
Bank Statement Home Loans for Self-Employed Borrowers in Sunset Valley
If your tax returns show less than your business really brings in, a bank statement loan lets you qualify on the deposits that land in your accounts each month. One loan officer reviews your statements, answers your questions and stays with your file until you sign.
A home loan built around how you are actually paid
Conventional underwriting looks at the bottom line of your tax return. For many business owners, contractors and consultants, that number is low on purpose, because legitimate write-offs reduce taxable income. The result is a borrower who earns well but looks thin on paper.
A bank statement loan takes a different route. We review 12 or 24 months of personal or business bank statements, total the qualifying deposits and calculate a monthly income from them. Transfers between your own accounts and one-time items are set aside, so the figure reflects steady earnings.
These are non-qualified mortgages, which means the guidelines are set by the lender rather than by Fannie Mae or Freddie Mac. That flexibility is useful, and it comes with trade-offs we will walk you through plainly before you commit to anything.
What your loan officer takes care of
- 01
An early look at your statements
Before anything goes to underwriting, we go through your statements together. An overdraft or an odd deposit pattern gets raised now, when you still have room to explain or correct it.
- 02
A clear income worksheet
We show you how each month's deposits add up to your qualifying income. On business accounts, you will see the expense factor we apply, or how a profit-and-loss statement prepared by your accountant could take its place.
- 03
Choosing the right account
Some borrowers keep a single account for everything, and others separate business and personal money carefully. We help you pick the statements that show your earnings most accurately.
- 04
Help with explanation letters
Underwriters usually ask about large or unusual deposits. We point out which ones will draw questions and what a short, complete answer should include.
- 05
The same person throughout
Whoever reviews your statements also keeps you informed during underwriting and joins you at closing. Your file stays with one loan officer instead of passing between departments.
Questions about Bank Statement Loans?
Call(512) 746-0139Signs a bank statement loan may fit you
Your returns show less than you earn
Depreciation, mileage and business expenses are smart for taxes but can cut your qualifying income sharply on a conventional application.
You were turned down elsewhere
A denial based on tax-return income does not always mean you cannot qualify. It often means the loan type was the wrong match.
Your income arrives unevenly
Seasonal work, project billing and commission-heavy months average out well over 12 or 24 months of deposits.
You are paid on 1099s
Independent contractors without W-2 pay stubs are often a natural fit, provided deposits are consistent and traceable.
You have been self-employed a while
Lenders generally look for an established history in the same line of work. If you are newer to it, we will tell you honestly whether the timing works yet.
How your loan moves toward closing
- 1
A first conversation
We ask how your business runs, how income reaches you, where your credit stands and what you plan to buy or refinance. By the end, you have an honest read on your position.
- 2
Working through the statements
Once you send your statements, we total qualifying income and mark any deposits that will need a note. Most of the questions that could slow a file get answered at this stage.
- 3
Pre-approval with options laid out
When the figures support it, we issue your pre-approval. You then see rate and down payment choices next to each other, so you can compare them without pressure.
- 4
Appraisal and underwriting
With a signed contract, we order the appraisal and clear underwriting conditions as they come in. Your updates come from your loan officer directly.
- 5
Signing day
Ahead of closing, we walk you through the final numbers line by line. What you sign should match the terms we talked through, with nothing new on the table.
What shapes your rate and terms
Bank statement loans usually carry a somewhat higher rate than conventional financing, because the lender takes on more documentation risk. How much higher depends on your full file. We will not quote a number before we have seen the details, and when we do, you will see what moves it.
- Down payment
- A larger down payment lowers the lender's risk and tends to improve your rate. Many programs expect more down than a conventional loan would.
- Credit score
- Your score carries significant weight in non-QM pricing. Even a modest improvement before applying can make a difference.
- Months of statements
- Some programs allow 12 months, others prefer 24. The longer history can sometimes earn better terms, especially if income has been steady.
- Property and occupancy
- A primary residence is priced differently from a second home or an investment property. Condos and multi-unit properties can add their own requirements.
- Reserves
- Cash left over after closing, measured in months of payments, reassures underwriters and can widen your options.
Questions about bank statement loans
Will I have to hand over tax returns?
Usually not. In most bank statement programs, the statements themselves serve as your income documentation. An underwriter may still want a business license, a letter from your accountant or other proof of how long you have worked for yourself.
Which statements should I use, personal or business?
That comes down to how money moves through your accounts. Deposits to a personal account are often counted in full, while business account deposits typically have an expense factor taken off. When both are possible, we calculate each version and show you which one reflects your income more fairly.
Could I move to a conventional loan down the road?
That path is common. As your business grows, or once your tax returns report enough income on their own, refinancing into conventional financing may bring your rate down. When that point arrives, we can run the numbers with you.
How is a large one-time deposit treated?
Expect the underwriter to ask about its source. Regular business income is usually cleared with a brief written explanation and a supporting document. Money that came from a transfer or a loan is generally left out of your qualifying income.
Does this work for an investment property?
In many cases it does. These programs can finance a primary residence, a second home or an investment property, with terms that vary for each. For an investment purchase that leans on the property's rental income, we can also set it beside our hard money loans for comparison.
Bring your statements and your questions
A short conversation is usually enough to tell whether your deposits support the home loan you have in mind. You will speak with the loan officer who will carry your file to closing.