Your cash flow is your income. Let's use it.
Your accountant did their job and minimized your taxes. Now your tax returns say you can't afford a house you can clearly afford. Bank statement loans fix that.
Overview
You run a profitable business. Your bank account proves it. But your tax returns tell a different story because that's exactly what they're designed to do. Your accountant writes off every legitimate deduction and your adjusted gross income drops to a fraction of what actually flows through your accounts.
Most lenders look at that AGI and close the file. They don't want to do the work of understanding what the numbers really mean. That's lazy underwriting, and it locks out millions of self-employed borrowers who can clearly afford a mortgage.
Bank statement loans skip the tax returns entirely. I calculate your qualifying income from 12 or 24 months of bank deposits. Your actual cash flow. Not your AGI. The rates are higher than conventional, but if your tax returns lock you out of homeownership entirely, this product opens the door.
Key Details
How I Handle This
I review your deposits and calculate income the way each lender in my network would. That's the key detail most borrowers don't know: different lenders apply different expense factors to the same deposits. Same bank statements, different qualifying income depending on where the file lands.
I find the lender that produces the strongest number for your specific deposit pattern. If your tax returns actually work better with the right add-backs, I tell you that too. You see all your options. For the full picture on qualifying as a business owner, see self-employed scenarios.
Questions I Get
Personal or business statements?
Depends on structure. Sole proprietor depositing to a personal account? Personal statements usually work. LLC or S-Corp running through a business account? Business statements. I look at both and tell you which path qualifies more.
What's the expense factor?
It's the percentage of deposits the lender deducts for business expenses. Default is usually around half. If your actual expenses are lower, a CPA letter can document that and increase your qualifying income. This is where the right documentation makes a big difference.
Are rates higher?
Yes. The premium over conventional is real. How much depends on your credit, down payment, and lender. For a lot of self-employed borrowers, the alternative to a bank statement loan isn't a cheaper loan. It's no loan.
How long do I need to be self-employed?
Most programs want two years. Some bank statement lenders work with 12 months if you were in the same industry before going out on your own.
Self-employed and tired of hearing 'no'?
Send me your last 12-24 months of bank statements. I'll calculate your qualifying income and tell you which path works best.