Bank Statement Loans
Bank Statement Loans
Bank Statement Loans allow borrowers to qualify based on their bank statements, rather than tax returns and pay stubs. Qualifications can be 12 or 24 months of business or personal statements.
Lenders analyze bank statements to determine the average monthly deposit. An expense factor is applied and the net income is used as qualifying income. This calculation may more accurately depict real cash flow than tax returns, where write-offs can reduce reported income.
This calculated income is then used to determine a borrowers debt-to-income ratio.
Who typically uses Bank Statement loans?
Guidelines: Bank Statement Loans
Apply for a Bank Statement Loan
What Our Clients Say About Us
A bank statement loan is a type of mortgage where lenders verify your income using personal or business bank statements (typically 12–24 months' worth) instead of traditional documents like tax returns, W-2s, or pay stubs. Lenders analyze your deposit history and cash flow to determine your qualifying income and ability to repay.
Pros:
(-) No need for tax returns or W-2s
(-) Qualifies based on actual cash flow (helpful if deductions lower taxable income)
(-) Flexible for self-employed borrowers
Cons:
(-) Slightly higher interest rates and potentially larger down payments
(-) Stricter credit/reserve requirements in some cases
No. They fall under non-QM (non-qualified mortgage) products, not subprime. They're legitimate options for creditworthy borrowers who don't fit traditional guidelines.
Yes, they are generally higher than conventional conforming loans due to the alternative documentation and perceived higher risk. Rates can vary widely based on your credit, down payment, and lender. We have access to over 100 lenders to shop the market for you and to obtain a competitive rate.
Yes—many programs allow personal, business, or a combination. If business income flows into a personal account, personal statements often suffice.
Most programs require 12 to 24 consecutive months. Some lenders accept 12 months for stronger profiles, while others default to 24 for more conservative underwriting.
Lenders review your deposits over the required period (12 or 24 months) and calculate an average monthly income. They often exclude certain deposits (e.g., transfers, refunds) and may apply a percentage (like 50–100%) depending on the program and whether it's personal or business accounts. The focus is on consistent cash flow rather than net profit shown on taxes.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Programs and interest rates are subject to change without notice. Contact your Scout Advisors mortgage expert for current rates and to confirm program eligibility.
