(833) 214-8444

Bank Statement Mortgage for Self-Employed Buyers

A bank statement mortgage lets self-employed borrowers qualify using 12 or 24 months of personal or business bank statements instead of tax returns. It exists because many business owners write off expenses that lower the income on their tax returns, even when their deposits tell a different story. The lender looks at your deposits over time to estimate your income.

Heart Mortgage is a mortgage broker (NMLS #2045769). We compare bank statement programs from multiple lenders and guide you in English, Portuguese or Spanish, from the first call to closing.

Who it is for

  • Business owners, independent contractors (1099) and self-employed professionals.
  • Buyers whose tax returns show less income than they actually earn, because of business deductions.
  • Buying a home to live in, a second home or an investment property.
  • Some lenders also accept ITIN borrowers in bank statement programs.

It may not be the right path if

  • You are a W-2 employee. Standard programs such as conventional or FHA usually fit better.
  • Your tax returns already show the income you need. A conventional loan with tax returns may cost less.
  • You are buying only to rent out. A DSCR loan qualifies by the property’s rent instead.

How it works

  1. Conversation with a loan officer. We look at your business, how long you have been self-employed, your deposits, credit and the home you have in mind.
  2. Personal or business statements. You choose, with the loan officer, whether personal or business account statements show your income better. With business statements, the lender applies an expense factor or uses a letter from your accountant.
  3. Program match. Each lender has its own rules for the number of months, expense factor, credit and property type. We compare the programs that accept your profile.
  4. Documents and pre-approval. You send the documents below and receive a pre-approval to make an offer.
  5. Underwriting and closing. The lender reviews the file, the home is appraised, and you sign at closing.

Documents lenders usually ask for

  • 12 or 24 months of personal or business bank statements, all pages.
  • Proof that you have been self-employed, usually for at least two years: business license, articles of organization or a letter from your CPA or tax preparer.
  • A CPA letter or profit and loss statement, when the lender requires it.
  • Photo ID, and your ITIN letter if you file taxes with an ITIN.
  • Statements showing the down payment and reserves.

No tax returns or W-2s are needed to prove income. The exact list depends on the lender and your profile. Your loan officer sends you a checklist for your case.

Why self-employed buyers work with Heart Mortgage

  • A broker, not a single lender. We compare bank statement programs from multiple lenders, including whether personal or business statements work better for your case.
  • Your language. All 11 of our licensed loan officers speak English and Portuguese; 7 also speak Spanish.
  • Founded by an immigrant. Lee Dama (NMLS #485039) founded Heart Mortgage in 2021 after arriving in the U.S. from Brazil at 19.
  • Licensed in 10 states: FL, TX, NJ, MA, CT, SC, NC, RI, NH and GA.

Frequently asked questions

How does a bank statement loan work?

Instead of tax returns, the lender reviews 12 or 24 months of your bank statements and uses your deposits to estimate your monthly income. With business statements, it also accounts for business expenses.

Personal or business bank statements: which is better?

It depends on how your money moves. If your business pays you into a personal account, personal statements may show your income more clearly. If you keep everything in the business account, business statements with an expense factor or a CPA letter may work better. Your loan officer compares both.

How long do I need to be self-employed?

Usually at least two years, with some exceptions depending on the lender and your work history.

Can I use a bank statement loan to buy the home I live in?

Yes. Unlike a DSCR loan, bank statement programs can finance a primary residence, a second home or an investment property.

Can I get a bank statement loan with an ITIN?

Some lenders accept ITIN borrowers in bank statement programs. See our ITIN mortgage page for how ITIN loans work.

Guides from our blog

See all articles →

Talk to a loan officer

Tell us about your situation and we will show you which paths exist, at no cost and with no commitment. In English, Portuguese or Spanish.

Get started

Or call (833) 214-8444.

Heart Mortgage Corporation, NMLS #2045769. Mortgage broker, not a lender. Equal Housing Opportunity. Requirements and terms vary by borrower profile, program and lender, and are subject to change. This is not a commitment to lend. All loans are subject to credit approval and eligibility.