Bank-statement loans: qualifying when you're self-employed

How it works

Bank-statement loans look at 12 or 24 months of deposits in your business account.

I calculate the average monthly income based on what's actually coming in.

That usually paints a much clearer picture than a tax return loaded with deductions.

You still need decent credit and a down payment, but the income side becomes a lot easier to prove.

Rate and down payment

These loans cost a little more than conventional.

The rate is typically higher by half a percent to a full percent, and you'll want to put down at least 10 to 15 percent.

Sometimes 20 percent gets you a better rate and a smoother approval.

I'll run both options for you so you can see the real monthly payment and decide if it's worth it.

What you'll need

Twelve or twenty-four months of business bank statements.

A letter from your CPA is helpful but not always required.

Proof you've been self-employed for at least two years.

Standard stuff like tax returns and your personal bank statements will come up too, but the heavy lifting happens on the business side.

Let's compare your options

I'll put a bank-statement loan next to a conventional loan with your real numbers.

Sometimes conventional still works even with write-offs.

Sometimes bank-statement is the only path that makes sense.

Call me at the number on this site and we'll figure out which one gets you approved and keeps your payment where you want it.