top of page


Updated: Jan 13, 2023

A bank statement mortgage can be helpful if you’re self-employed, and large tax deductions make your income look much smaller than it really is.

Is a bank statement mortgage right for you?

By looking at bank statements to determine your cash flow, lenders can qualify you based on your ‘real’ income — rather than the reduced amount they might see listed on your tax returns.

You might be interested in a bank statement mortgage if you’re a business owner, freelancer, contractor, seasonal, or gig worker. If so, here’s what you should know.

What is a bank statement on a mortgage program?

A Bank Statements Mortgage allows you to verify your income with your mortgage application using documented bank statements instead of tax forms. Conventional mortgages use tax returns, W2s and pay stubs to verify monthly income. The higher the monthly income, the lower the debt-to-income ratio (DTI), and a lower DTI can justify a higher loan amount. However, submitting traditional employment documents is impossible for people who do not have a full-time employer. Instead, home loan applicants can opt for a bank statement program.

Using personal statements to get a mortgage instead of a W2 can be a good loan option if:

  • You don’t have traditional tax documents to verify your total income

  • You have tax documents, but due to write-offs, your income looks smaller than it really is

Have Questions About your credit score? Schedule A FREE CONSULTATION with one of our credit consultants.

How to get a mortgage if you are self-employed or a freelancer/ Gig worker?

So if you are self-employed or have a side gig. You have good credit and a financial record. But you're having trouble getting a mortgage because you don't have traditional W2 cards to prove your income. Fortunately, a bank statement mortgage program can be the perfect


How Lenders Determine Your Income

When you buy or finance a home, there are specific steps you must take.

One step requires you to document your income. This includes savings, retirement, investment balances and debt.

This can be difficult for self employment mortgage applicants. These people often have income and business expenses that are difficult to prove.

For example, a self-employed borrower may earn $7,000 per month. But after the business deduction, only $5,000 of income per month can be documented on their tax forms.

This can reduce their home buying budget by over $150,000.


Documented monthly income



Qualified monthly mortgage payment



Qualified home buying budget



How much down payment is required for a bank statement mortgage?

Since they’re non-conventional loans, your lender may require a higher down payment, such as 10 or 20 percent. Lenders may want to see a higher credit score than the 620 conventional loans usually require. In this sense, bank statement loans resemble jumbo


Do bank statement loans work for refinancing?

Yes, bank statement loan programs work for refinance loans, including cash-out refinances for borrowers who have enough home equity to meet lending requirements.

Current mortgage and refinance rates

Accurate as of 01/12/2023.

Have Questions About your credit score? Schedule A FREE CONSULTATION with one of our credit consultants.

Knowing your credit score is very important. Your Credit rating can determine your employment and quality of living. Negative items reporting will cause denials and low score ratings for consumers. At Valiant Credit Services we specialize in credit disputes to help clients remove negative items through our credit repair services and also improve our clients scores as part of the credit education process. Contact us today to get clarity on your credit report and credit score. You can Schedule a FREE consultation with a Senior Credit Consultant today. CLICK BOOK NOW OR CALL 866-373-1377.

Recommended Reads


CALL 866-373-1377



bottom of page