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Non-QM Mortgage Loans

If traditional lending doesn’t fit your financial story, a Non-QM mortgage may be the answer. Ryan Marks helps homebuyers access flexible mortgage solutions tailored for self-employed borrowers, investors, and those with non-traditional income.

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Ryan Marks Producing Branch Manager Everyday Lending Group 3

Ryan Marks

Mortgage Broker
NMLS #519138

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Ryan@elendingteam.com
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What Is a Non-QM Mortgage Loan?

A Non-QM mortgage loan offers a path to homeownership for those who don’t meet standard lending guidelines. This includes self-employed professionals, real estate investors, retirees, or anyone with unique income or credit circumstances. Ryan Marks works with borrowers to match the right Non-QM solution to their situation, making home financing more accessible for a wider range of buyers.

What Are First Time Homebuyer DPA Loans

Bank Statement Loans

Flexible Financing for Self-Employed Borrowers
Bank Statement Loans are designed for self-employed individuals who may not have traditional tax documents but still earn consistent income. Instead of W-2s or pay stubs, lenders evaluate 12 to 24 months of personal or business bank statements to assess income. With financing available up to 90% of the home’s value and interest-only options, this solution offers flexibility for entrepreneurs, freelancers, and small business owners looking to purchase or refinance a home.

Who Can Benefit from a First Time Homebuyer DPA Loan

DSCR Loans (Debt Service Coverage Ratio Loans)

Real Estate Investment Without Income Verification
DSCR Loans are ideal for real estate investors who want to qualify based on property cash flow instead of personal income. These loans assess the property’s ability to cover its own expenses using the debt service coverage ratio (DSCR). Options are available even with a DSCR below 1.0, and financing goes up to 85% loan-to-value. This product is suitable for rental properties up to 12 units, and borrowers can qualify using personal or business assets to meet DSCR thresholds.

How Do First Time Homebuyer DPA Loans Work 1 1

Home Equity Loans and HELOCs

Leverage Home Equity to Access Cash
Home Equity Loans and Home Equity Lines of Credit (HELOCs) offer homeowners access to the equity they’ve built, allowing them to fund renovations, consolidate debt, or invest in new properties. These second mortgage options provide flexible terms from 3 to 30 years, with both fixed and revolving credit options. They’re available for primary and investment properties, even for borrowers using alternative documentation like bank statements or P&L statements, and can support credit scores as low as 600.

Types of Loans That Qualify for DPA Assistance

1099 Mortgage Loans

Home Financing for Independent Contractors and Commission Earners
1099 Mortgage Loans are designed for self-employed professionals, such as realtors, consultants, and gig workers, who receive income reported on 1099 forms instead of traditional W-2s. Borrowers can qualify using 12 to 24 months of 1099 income, with no tax returns required. These loans allow as little as 10% down and include interest-only options, making them ideal for those recently transitioning from salaried to self-employed roles and looking for flexible mortgage qualification.

What Are the Benefits of a First Time Homebuyer DPA Loan

Profit and Loss (P&L) Loans

Qualify Using a CPA-Prepared Profit and Loss Statement
P&L Loans enable borrowers to qualify for a mortgage using just a 12-month profit and loss statement—no bank statements, W-2s, or tax returns needed. These loans can finance up to 85% of the home’s value and accept debt-to-income ratios up to 55%. A CPA must sign the P&L, and expense factors as low as 10% are allowed, maximizing qualifying income. This loan is available for both primary and investment properties, including first and second liens.

Is an ITIN Loan Right for You

ITIN Home Loans for Foreign Nationals and Non-U.S. Citizens

Path to Homeownership Without a Social Security Number
ITIN Loans help borrowers who do not have a Social Security Number purchase or refinance a home using an Individual Taxpayer Identification Number. Financing is available up to 90% LTV with flexible income documentation, including bank statements, 1099s, P&Ls, and written VOEs. With minimum credit scores starting at 650—or even 550 for certain bridge loans—these mortgages offer a viable path to homeownership while helping borrowers build credit and secure long-term housing stability.

Is a First Time Homebuyer DPA Loan Right for You

Private Money Loans

Flexible Real Estate Financing with Minimal Documentation
Private Money Loans offer fast, short-term financing for real estate investors and borrowers who may not meet traditional lending criteria. These loans do not require income documentation and are ideal for those with poor or no credit. Options include bridge loans, construction loans, rescue purchase or refinance loans, and long-term private money loans with terms up to 30 years. Whether you’re flipping a property, covering a gap in funding, or seeking alternative financing, these loans provide speed, flexibility, and creative structuring.

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Asset Depletion Loans

Qualify Using Existing Assets Instead of Traditional Income
Asset Depletion Loans allow borrowers to convert their liquid assets into qualifying income, making it possible to secure a mortgage without regular employment income. Lenders assess the borrower’s total assets—such as retirement accounts, investment portfolios, or savings—and calculate an income stream based on those assets. This is ideal for retirees, high-net-worth individuals, or anyone with significant savings who prefers to leverage their wealth rather than documented earnings.

Flexible Home Financing for North St. Pauls Self Employed and Business Owners

Asset Utilization Loans

Turn Liquid Assets into Mortgage-Qualifying Income
Similar to asset depletion, Asset Utilization Loans enable borrowers to use their personal or business assets—like bank funds, stocks, or CDs—as a basis for income qualification. These loans provide flexibility in underwriting and are a strong fit for self-employed borrowers, investors, or retirees who may not show consistent income on paper. They are available for both primary residences and investment properties, with competitive terms and multiple documentation options.

You’ve Got Questions. We’ve Got Answers

Self-Employed Bank Statement Loan Highlights

Self-employed borrowers often face challenges with traditional mortgage qualification, but Bank Statement Loans are designed to offer flexibility and accessibility. Here’s what makes these loans ideal for business owners, freelancers, and independent contractors:

Up to 90% Financing: Borrow up to 90% of the property’s value with competitive rates and flexible terms.

Interest-Only Options: Choose from 30- or 40-year terms with interest-only payment options to help manage cash flow, especially in the early years of the loan.

ARM and Fixed-Rate Options: Whether you want the stability of a fixed rate or the flexibility of an adjustable-rate mortgage, there’s a solution that fits your strategy.

Low Expense Factors: Qualify using as little as a 10% expense factor, allowing more of your gross income to count toward your qualification.

Flexible Employment History: Only 1 year of self-employment is required in some cases, particularly for those who have transitioned from W-2 to self-employed or 1099 income.

Higher DTI Limits: Debt-to-income ratios up to 55% are allowed, making these loans accessible even for those with significant business or personal obligations.

Credit-Friendly: Minimum FICO score of 600 accepted, giving more borrowers a chance to qualify regardless of credit challenges.

These highlights make Bank Statement Loans for the self-employed a powerful financing tool for those with complex or unconventional income streams.

FeatureBank Statement LoanTraditional Mortgage
Who is it for?Self-employed borrowers, freelancers, business owners, 1099 earnersW-2 employees with verifiable income
UsagePrimary home, second home, or investment propertyPrimary home, second home, or investment property
Income verification12–24 months of bank statementsTax returns, W-2s, and pay stubs
Minimum down payment10%3%–5% (20% to avoid PMI)
Minimum credit score620620
Loan terms available15–40 years, fixed or interest-only15–30 years, fixed or adjustable
DSCR Loan Highlights

Debt Service Coverage Ratio (DSCR) Loans are built for real estate investors looking to qualify based on rental income rather than personal income. These loans are ideal for expanding a property portfolio with fewer documentation hurdles.

Up to 85% LTV: Finance up to 85% of the property’s value, helping you maximize leverage while keeping cash on hand.

Flexible DSCR Ranges: Loans are available with DSCRs from below 0.75 (No Ratio) up to 1.25+, giving flexibility to both high- and low-yielding properties.

Asset Utilization Accepted: Use personal or business liquid assets—including retirement accounts, CDs, and stock portfolios—to help meet qualification criteria.

ARM and Fixed-Rate Options: Choose between adjustable-rate and fixed-rate mortgage options to align with your investment goals.

Interest-Only Payment Options: Lower your monthly obligations with interest-only terms, giving you breathing room to reinvest cash flow.

Eligible for 1–12 Unit Properties: Whether you’re financing a single rental or a small apartment complex, DSCR loans accommodate properties with up to 12 units.

DSCR Loans make it easier to qualify by focusing on the property’s income potential—not your tax returns—so you can grow your investment portfolio faster.

Home Equity Loans & Lines of Credit (HELOAN & HELOC) Highlights

Access the equity in your home without touching your first mortgage. Whether you’re looking to renovate, invest, or consolidate debt, a second mortgage or HELOC can provide flexible funding tailored to your needs.

Up to 90% CLTV for Primary Residences: Tap into a significant portion of your home’s equity—up to 90% combined loan-to-value—for owner-occupied properties.

Up to 85% CLTV for Investment Properties: Investors can access up to 85% CLTV, making this an ideal solution for rental or income-generating properties.

Flexible Terms: Choose between a fixed second mortgage (HELOAN) with terms from 1 to 30 years, or a revolving HELOC with terms ranging from 3 to 30 years.

Low Credit Score Requirements: Qualify with credit scores starting at 600, opening the door for more borrowers.

Multiple Income Documentation Options: Qualify using full documentation, Profit and Loss (P&L) statements, or bank statements, depending on your financial profile.

DSCR-Eligible Second Mortgages: Real estate investors can benefit from DSCR-based second mortgages, perfect for refinancing or cashing out from income-producing properties.

With both fixed and revolving options, these equity solutions are designed to offer flexibility, fast access to capital, and broader eligibility—even for borrowers who don’t meet traditional underwriting standards.

Profit and Loss (P&L) Mortgage Loans

P&L mortgage loans are a powerful option for self-employed borrowers who prefer not to use tax returns or bank statements. By leveraging a CPA-prepared Profit and Loss statement, you can qualify based on actual business performance instead of traditional income documentation.

No Bank Statements or Tax Returns Required: Qualify without W-2s, pay stubs, or tax filings—just a 12-month P&L statement signed by your CPA.

Flexible Loan Structure: Available for primary residences and investment properties, including first and second liens.

Generous Loan Terms:

  • Up to 85% CLTV

  • Up to 55% DTI

  • Interest-only payment options

  • Gift funds accepted toward down payment or reserves

Low Expense Ratios: With expense factors as low as 10%, you can use up to 90% of your P&L’s net income for qualification.

If you’re a business owner seeking flexible documentation and full control over how your income is evaluated, a P&L mortgage loan offers a smart, efficient solution tailored to your financial reality.

ITIN Home Loans for Foreign Nationals and Non-U.S. Citizens

ITIN home loans make it possible for foreign nationals and non-U.S. citizens without a Social Security Number (SSN) to finance a home in the United States. These mortgage options are designed for borrowers who have an Individual Taxpayer Identification Number (ITIN) and offer flexible terms and documentation options.

No SSN Required: Qualify for a home loan using your ITIN instead of a Social Security Number, helping overcome a major barrier for many non-citizen applicants.

Loan Highlights:

  • Up to 90% LTV available

  • Minimum FICO score of 650 (as low as 550 with bridge loan options)

  • Use for purchase, refinance, or cash-out

  • Accepts all income types

Flexible Verification Methods:

  • 12–24 months of bank statements

  • 1–2 years of 1099s or P&L statements

  • 1-year W2 or tax return

  • Written VOE (Verification of Employment)

  • Asset-based income

  • DSCR qualification for investment properties

Why Consider an ITIN Mortgage?

  • No residency requirement — great for international buyers or undocumented residents

  • Credit-building opportunity — each on-time payment helps strengthen your U.S. credit profile

  • More affordable than hard money — flexible repayment options with lower rates and long-term stability

If you’re working, investing, or building a life in the U.S. without a Social Security Number, an ITIN mortgage could be your path to homeownership or investment real estate—without the traditional hurdles.

Flexible Private Money Loans for Real Estate Investors

Private money loans are fast, asset-based financing solutions designed for real estate investors, developers, and buyers who need flexible terms and minimal documentation. Whether you’re flipping a property, bridging a purchase, or facing an urgent refinance need, these loans provide fast access to capital without the strict requirements of conventional financing.

Private Loan Options Include:

Bridge Loans
Short-term financing (up to 24 months) ideal for buyers needing fast funding while transitioning between property sales. Great for avoiding delays when timing is critical.

Construction Loans
Short-term hard money loans (6 to 12 months) for active build projects. Perfect for developers with approved permits looking to cover immediate construction costs.

Rescue Loans
Available as purchase or refinance loans (0 to 6-month terms) when traditional financing falls through or time-sensitive deals require last-minute funding.

Long-Term Investor Loans
Up to 30-year fixed terms for purchases or refinances. These options improve cash flow and offer stable repayment terms for long-hold investment strategies.

Program Highlights:

  • No income documentation required

  • No minimum FICO score required

  • Fast closings and streamlined approval

  • Available for owner-occupied and investment properties

Whether you’re rebuilding credit, need rapid funding, or simply want flexible underwriting, private money lending offers a valuable alternative to bank financing—especially for those with unique financial scenarios or tight timelines.

Asset-Based Lending Highlights

Qualify Using Liquid Assets Only:
Borrowers can qualify without traditional income verification or employment history. Instead, eligibility is based on liquid assets such as checking and savings accounts, CDs, stocks, bonds, retirement accounts, and mutual funds.

No Income or Employment Required:
This program is ideal for high-net-worth individuals, retirees, self-employed borrowers, or anyone with significant assets but non-traditional or no current income.

Loan Amounts Up to $3 Million:
Secure high-value financing for primary residences, second homes, or investment properties based on the strength of your asset portfolio.

Flexible Asset Calculation:
Use 100% of funds in bank accounts and up to 70% of retirement and investment account balances. Qualification is typically based on dividing the verified assets over 60, 84, or 120 months (5, 7, or 10 years).

No DTI Ratio Requirement:
Debt-to-Income ratios are not calculated for most asset-based loans, removing a common barrier for borrowers with high-value assets but complex financial profiles.

Down Payment as Low as 20%:
Minimum 20% down payment required, making this a viable option even for those looking to conserve liquidity while purchasing property.

Interest-Only Options Available:
Reduce monthly payments during the early years of the loan with interest-only payment options, providing increased flexibility for cash flow management.

SOFR ARM Options for Lower Initial Rates:
Choose from 6-Month SOFR ARMs with fixed introductory periods (3, 5, 7, or 10 years), followed by adjustments every 6 months based on the 30-day SOFR index.

Cash-Out Options Available:
Tap into your asset strength to access cash for renovations, investments, or large expenses without needing to show employment or income.

Fast, Common-Sense Underwriting:
Manual underwriting process focused on real asset verification, making approvals smoother for qualified borrowers.

Asset Utilization Loan Highlights

Leverage Your Assets Instead of Income:
With asset utilization loans, borrowers qualify based on the value of liquid assets — not employment or income. This is a powerful alternative for retirees, self-employed individuals, or high-net-worth borrowers with substantial savings or investment holdings.

No Traditional Income Documentation Required:
No tax returns, W-2s, pay stubs, or employment verification needed. Assets such as bank accounts, stocks, bonds, and retirement funds are used to calculate qualifying income.

Flexible Asset Types Accepted:
Use 100% of the balance from personal checking and savings accounts. Up to 70% of retirement and investment accounts (like IRAs or brokerage accounts) may be used for qualification purposes.

Loan Amounts Up to $3 Million:
Secure substantial financing for primary residences, second homes, or investment properties based solely on your asset portfolio.

Qualification Based on Asset Depletion Formula:
Lenders calculate qualifying income by dividing eligible assets by 60, 84, or 120 months — depending on the loan term — to determine monthly income for underwriting purposes.

No Employment Required:
Perfect for borrowers who no longer work, have variable income, or recently transitioned out of a traditional role — including retirees or those living off investments.

Down Payment as Low as 20%:
Minimum 20% down payment required, making this option accessible to borrowers who want to retain liquidity while investing in property.

No DTI Calculations in Most Cases:
Since qualification is based entirely on assets, debt-to-income ratio is not a limiting factor for most asset utilization loans.

Interest-Only Payment Options Available:
Manage your cash flow with flexible repayment options, including interest-only plans to reduce initial monthly obligations.

SOFR ARM and Fixed-Rate Options Available:
Access competitive rate structures with choices ranging from fixed-rate terms to adjustable-rate SOFR ARMs with 3/6, 5/6, 7/6, and 10/6 options.

Feature Bank Statement Loan Traditional Mortgage
Who is it for? Self-employed borrowers, freelancers, business owners, 1099 earners W-2 employees with verifiable income
Usage Primary home, second home, or investment property Primary home, second home, or investment property
Income verification 12–24 months of bank statements Tax returns, W-2s, and pay stubs
Minimum down payment 10% 3%–5% (20% to avoid PMI)
Minimum credit score 620 620
Loan terms available 15–40 years, fixed or interest-only 15–30 years, fixed or adjustable

Why Use a Non-QM Mortgage?

Non-QM (Non-Qualified Mortgage) loans are designed for borrowers who don’t fit the traditional mold. Whether you’re self-employed, a real estate investor, newly 1099, or have significant assets but limited reportable income, Non-QM loans offer flexibility where standard loans fall short. These programs look beyond tax returns and W-2s — allowing for alternative documentation like bank statements, asset utilization, or DSCR calculations. If you’ve been turned away by traditional lenders but know you can repay responsibly, a Non-QM mortgage may be the key to financing your next home or investment.

Frequently Asked Questions About Non-QM Mortgages

Discover mortgage options built for self-employed borrowers, real estate investors, and anyone with unique income sources. From Bank Statement Loans to DSCR and Asset-Based Lending, Non-QM loans provide the flexibility traditional mortgages can’t. Let’s find the solution that fits your financial story.

What is a Non-QM loan?

A Non-QM (Non-Qualified Mortgage) loan is a type of home financing designed for borrowers who don’t meet traditional lending guidelines. These loans use alternative methods to verify income, such as bank statements, profit and loss statements, or asset balances, instead of tax returns or W-2s.

Non-QM loans are ideal for self-employed individuals, business owners, independent contractors, real estate investors, and anyone with non-traditional income sources. They’re also a great fit for those with recent credit events or high-value assets but limited reportable income.

Instead of tax returns, Non-QM lenders may accept 12–24 months of personal or business bank statements, CPA-prepared P&L statements, 1099 forms, or asset statements. The exact requirements vary based on the loan product.

Not always. While credit history is considered, many Non-QM programs accept credit scores as low as 600. Some products are even available for borrowers with recent credit challenges.

Rates for Non-QM loans are usually slightly higher than conventional loans because they involve more risk to the lender. However, the flexibility and accessibility often outweigh the difference for many borrowers.

Yes, many Non-QM loans are designed for real estate investors. Programs like DSCR loans allow you to qualify based on the property’s income potential, not your personal income.

Non-QM loans can be both short-term and long-term, depending on your goals. Some borrowers use them as a bridge to conventional financing once they can document their income more traditionally.

Many Non-QM loans close just as quickly as traditional loans, especially when documentation is provided upfront. Timelines may vary based on the loan type and lender.

Pros:

  • Easier Approval for Self-Employed Borrowers: No W-2s or tax returns required.

  • Higher Loan Potential: Qualify for larger amounts using actual cash flow from bank statements.

  • Debt Consolidation: Pay off high-interest debt like credit cards with one manageable payment.

  • Flexible Use of Funds: Great for home improvements, investments, or business growth.

Cons:

  • Requires Strong Documentation: Must supply detailed bank statements and be self-employed for 2+ years.

  • Fees Apply: Expect appraisal, origination, and closing costs.

  • Risk of Overleveraging: Using equity irresponsibly can strain your finances.

Bank Statement Refinance Loans are designed for self-employed individuals and borrowers with non-traditional income. Instead of relying on tax returns or W-2s, lenders evaluate income through personal or business bank statements. Below are the typical requirements for qualifying:

✔️ Income Documentation:
Borrowers must provide 12 to 24 months of bank statements to demonstrate consistent deposits and cash flow. These statements replace standard income documents like tax returns or pay stubs.

✔️ Credit Score:
While some lenders accept a minimum credit score of 620, higher scores generally result in better terms and lower interest rates.

✔️ Debt-to-Income Ratio (DTI):
DTI up to 50% is often allowed, providing flexibility for borrowers juggling multiple financial obligations.

✔️ Self-Employment History:
Most lenders require at least two years of self-employment. Some may consider just one year of self-employment if the borrower has prior experience in the same industry.

✔️ Property Appraisal:
A professional appraisal is required to determine the home’s market value, which helps calculate how much equity can be accessed.

✔️ Equity Requirements:
Typically, borrowers need at least 20% to 30% equity in their home to qualify for a cash-out refinance.

✔️ Closing Costs:
Expect to pay 2% to 5% of the loan amount in closing costs, which cover fees like appraisal, title, and loan origination.

Bank Statement Refinance Loans are ideal for individuals with non-traditional income who may not qualify for conventional refinancing due to limited or irregular documentation. These loans are especially helpful for:

Self-Employed Borrowers: Entrepreneurs, small business owners, and sole proprietors who manage their own income and expenses.

Independent Contractors & Freelancers: Individuals with variable income from project-based or gig work, including creatives, consultants, and developers.

Consultants & Contract Workers: Professionals providing services on a 1099 basis or working short-term contracts without consistent pay stubs.

Realtors & Commission-Based Workers: Sales professionals, particularly in real estate or insurance, whose earnings depend on commissions and market cycles.

Gig Economy Workers: Rideshare drivers, delivery workers, and freelance service providers who earn income through platforms like Uber, DoorDash, or Upwork.

Investors & Retirees: Individuals earning income from rental properties, investments, or retirement distributions without regular employment income.

Bank Statement Refinance Loans allow these borrowers to use 12 to 24 months of personal or business bank statements to qualify, offering a practical solution to refinance and potentially access equity without relying on traditional tax returns or W-2s.

If you fall into one of these categories and need a more flexible way to refinance your mortgage, this type of loan may be the right fit for your financial situation.

Bank Statement Loans are calculated using a review of your monthly deposits over a period of time—typically 12 or 24 months—to determine your average income. Here’s how the process works:

1. Calculating Your Average Income
Lenders total all eligible deposits from your personal or business bank statements over the selected timeframe (12 or 24 months) and divide by the number of months to find your average monthly income. This average is what’s used to assess how much mortgage you qualify for.

2. Verifying Self-Employment & Loan Requirements
Most lenders require that you’ve been self-employed for at least two years, or one year if you’ve stayed in the same line of work. You’ll also need to meet standard loan criteria, including credit score and reserve requirements.

3. Reviewing Deposit Types
Lenders differentiate between business and personal deposits:

  • If funds are deposited into a business account, they typically use 50% of those deposits to account for business expenses.

  • If funds are transferred into a personal account, 100% of those deposits may count toward your income.
    Non-business-related deposits (like gifts or transfers from other accounts) are usually excluded.

Even if your income is seasonal or inconsistent, it can still be averaged out. For example, earning $100,000 over three months may still qualify, as long as the average monthly income supports the loan amount you’re applying for.

We offer a flexible range of bank statement loan options tailored for self-employed borrowers and individuals with non-traditional income. These programs are designed to help you purchase a home, refinance, or tap into your equity—without the need for tax returns or pay stubs.

Bank Statement Purchase Loans
Ideal for buying a primary residence or investment property, these loans use 12–24 months of your personal or business bank statements to qualify instead of traditional income verification. Perfect for entrepreneurs, freelancers, and independent contractors who want to secure a home without W-2s or tax returns.

Bank Statement HELOCs and HELOANs
Access the equity in your home with a Home Equity Line of Credit (HELOC) or Home Equity Loan (HELOAN) using only your bank statements to qualify. These second mortgage options let you borrow against your home while keeping your first mortgage intact, giving you cash for renovations, debt consolidation, or business investments.

Bank Statement Cash-Out Refinance Loans
Replace your existing mortgage with a new one and receive cash back by tapping into your home equity. These cash-out refinance loans are qualified using your bank statements, allowing self-employed borrowers to consolidate debt or fund large expenses without traditional income docs.

Business Bank Statement Loans
Use 12 or 24 months of business bank statements to qualify. Depending on your business type and structure, we may use up to 80% of your deposits as qualifying income, with expense ratios as low as 20%. This option is designed for small business owners with strong cash flow but complex tax filings.

Profit & Loss (P&L) Loans
Qualify based on a CPA- or EA-prepared Profit and Loss statement from the last 12 or 24 months. These loans are ideal for borrowers who want to skip both tax returns and bank statements, using net income from their P&L alone to determine eligibility.

6-Month SOFR Bank Statement Loans
This adjustable-rate mortgage program is linked to the 6-month Secured Overnight Financing Rate (SOFR) and offers an initial low rate that adjusts semi-annually. It’s a great fit for borrowers comfortable with market-based rate changes and who want to qualify based solely on bank deposits rather than tax documents.

1. Qualify Without Tax Returns
Bank statement loans are ideal for self-employed individuals or small business owners who can’t easily document income with W-2s or tax returns. Lenders use 12 or 24 months of personal or business bank statements to verify your ability to repay.

2. Low Down Payment Options
You can secure a bank statement mortgage with as little as 10% down, making homeownership more accessible even without traditional income documentation.

3. Streamlined Loan Approval
With a simplified underwriting process, bank statement loans often come with faster approvals compared to conventional loans. This is especially helpful when timing is critical in competitive real estate markets.

4. Flexible Debt-to-Income (DTI) Ratios
Borrowers with a DTI ratio of up to 50% can still qualify, providing greater flexibility for those with variable income or business-related expenses.

5. Cash-Out Refinance Up to 80%
Tap into your home equity with a cash-out refinance up to 80% of your property’s value. Use funds for home improvements, debt consolidation, or other major expenses. If you want to access additional funds without changing your current mortgage, bank statement HELOANs are also available.

6. Large Loan Amounts Available
Bank statement programs offer financing for high-value properties, with loan amounts available up to $20 million.

7. Rate and Term Options
Choose between fixed-rate and adjustable-rate mortgages (ARMs) to match your financial goals. Interest-only options are also available for added payment flexibility during the early loan term.

Drawbacks to Consider

1. Self-Employment Requirement
To qualify, borrowers typically need to be self-employed for at least two years. Some exceptions apply for those who have one year in business but two years of experience in the same industry.

2. Potential for Higher Rates
Since bank statement loans are considered non-QM (non-qualified mortgages), they may come with slightly higher interest rates or down payments compared to conventional options. Rates are based on credit score, DTI, and overall financial profile.

To qualify for a Bank Statement Loan, borrowers must meet specific criteria based on income, credit score, down payment, and reserves. These loans are designed for self-employed individuals and business owners who prefer to use bank statements instead of tax returns to verify income.

Basic Eligibility Criteria

  • Self-Employment: You must be self-employed or own a business for at least 2 years. (1 year may be accepted with 2+ years in the same line of work.)

  • Credit Score: Minimum credit score is 620, with better terms available for scores 680+ and 720+.

  • Bank Statements: Lenders typically require 12 to 24 months of personal or business bank statements to calculate income.

  • PITI Reserves:

    • For loans under $1.5 million, 3–6 months of PITI (principal, interest, taxes, insurance) reserves are required.

    • For loans over $3 million, 12 months of PITI reserves are required.

  • Loan Amounts: Available from $100,000 to $20 million.

Down Payment Guidelines by Credit Score

Credit ScoreMinimum Down PaymentLoan-to-Value (LTV)
720+10%Up to 90% LTV
680+15%Up to 85% LTV
660+20%Up to 80% LTV
620+30%Up to 70% LTV

This flexible structure allows a wide range of borrowers to access home financing without traditional income documentation. Speak with a mortgage specialist to find the best option based on your credit score, bank statement history, and financial goals.

Applying for a Bank Statement Loan is a flexible and straightforward process, especially designed for self-employed individuals and borrowers with non-traditional income. Instead of submitting tax returns, you’ll provide 12 to 24 months of personal or business bank statements to verify your income.

You can choose to:

  • Upload your bank statements directly into the loan portal, or

  • Use secure digital mortgage software to sync with your bank and automatically retrieve your statements.

These loans go through a manual underwriting process, where a loan specialist carefully reviews your financial profile. Because of the personalized nature of this review, the average processing time is 21 to 30 days. For more complex financial scenarios, the process may take up to 45 to 60 days.

With the right documentation and timely communication, most applicants experience a smooth and efficient approval process.

Yes — if you earn 1099 income as an independent contractor, freelancer, or self-employed professional, you can typically qualify for a bank statement loan. Traditional mortgages often require W-2s and tax returns, which may not reflect your true income if you’re self-employed. Bank statement loans offer a flexible alternative by using 12–24 months of personal or business bank deposits to verify income.

We also offer a dedicated 1099 mortgage loan program, which lets you qualify using your 1099 forms instead of bank statements. This can be an ideal fit for realtors, consultants, and commission-based earners. Want to see which option works best for your situation? Contact us today to explore both programs.