Bank Statement Loans: The Mortgage for Self-Employed Homebuyers
You’ve come to the right place. In this guide, we’ll answer exactly what a Bank Statement Loan is, who it’s best for, and why it’s the best option for homebuyers without traditional income.
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What Is a Bank Statement Loan?
- A mortgage that allows you to qualify based on bank statements from the last 12-24 months
- A path to homeownership for prospective homebuyers without traditional income
Quick Answer
A bank statement loan is a type of mortgage that allows you to qualify for a loan without needing to provide traditional income verification documents, such as W-2s or pay stubs. Rather, lenders and underwriters use recent bank statements to assess earnings. These loans are helpful if you have inconsistent income, claim significant tax deductions, or have an employer that doesn’t issue traditional paychecks.
Why Consider a Bank Statement Loan?
Here are the most common types of borrowers we help qualify for a bank statement loan.
Small-Business Owners
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Freelancers & Gig-Economy Workers
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Independent Contractors
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Commission-Based Employees
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Pro Tip
A bank statement loan is the best mortgage product for these types of borrowers because you can qualify based on your actual cash flow rather than tax-restricted paperwork, which might be misleading for underwriters. Bank statement loans look at more than just your bank statements. Be prepared to disclose other information about your business and any business expenses when applicable.
Eligibility Requirements in 2025
Credit Score
620 minimum (700+ for best rates)
Down Payment
10%
Debt-to-Income (DTI)
≤ 45% (varies by borrower profile)
Mortgage Insurance (PMI)
No
Required Documentation
Bank statements from last 12-24 months, profit & loss statements for your business, 3-6 months of PITI reserves, business licenses.
Property Types
Primary home, second home, condo, investment with minimum loan amount of $100,000.
Bank Statement Loans vs. Other Mortgage Options
Bank Statement
Bank Statement
DSCR
Conventional Loan
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How to Apply for a Bank Statement Loan
Pre-Qualification (60 Seconds)
Answer a few questions online or with a UMortgage Loan Originator (LO).
Get Custom Loan Options
We’ll show you rates, payment estimates, and closing cost breakdown.
Lock In Your Interest Rate
Choose to lock when you see a competitive rate—no surprises later.
Underwriting & Closing
Submit documentation, clear underwriting, and close on your timeline.
Frequently Asked Questions
Wondering if a bank statement loan makes sense to you? Get clear, expert answers to the most common questions—cost, timing, benefits, and more!
Here's Why UMortgage is Your Best Choice
Relationships, Not Transactions
We’re here for more than just your mortgage. We’ll stick with you beyond closing to help you gain financial freedom through homeownership.
Local & Nationwide Expertise
With licensed loan officers across the country and deep knowledge of your local market, we’ll help you buy with confidence anywhere you call home.
Fast, Transparent Closings
We communicate with you every step of the homebuying or refinance process so you can close quickly without any hidden fees or surprises.