Bank Statement Loans | No Tax Returns Required

Qualify using the money your business actually makes — not what is left after write-offs. Twelve or twenty-four months of bank statements in place of tax returns.

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No SSN required. Takes about 2 minutes.

What Is Genuinely Harder	What Is Genuinely Easier
The rate is higher than a conventional loan	No tax returns. No W-2s. No pay stubs.
The down payment is usually larger	Write-offs stop working against you
You need two years self-employed and a business open two years	Your real cash flow is what gets counted
Deposits have to look steady and explainable	A real underwriter reads your file instead of a computer rejecting it
Overdrafts and unexplained deposits get questioned	The same business often supports two to three times more loan

A bank statement loan is not a harder loan. It is a loan that asks the right question.

Path	How It Is Calculated	Monthly Qualifying Income
Business statements — flat 50% expense factor	$480,000 x 50%, divided by 12. No accountant needed.	$20,000
Business statements — accountant expense letter	Your accountant certifies the real expense ratio. At 30%: $480,000 x 70%, divided by 12.	$28,000
Business statements — accountant profit and loss statement	Net income straight off the P&L. Deposits must back it up within 20%.	Whatever your books actually net
Personal statements — 12-month average	No expense factor at all. What landed in your personal account, divided by 12.	Based on what you actually paid yourself

1. Which account the money lands in first. If revenue hits the business account and you transfer yourself a paycheck, personal statements may qualify you on a bigger number than business statements would — because no expense factor gets applied to a personal account.

2. Your documented ownership percentage. The flat 50% calculation is applied after your ownership share. Own 50% of the business instead of 100%, and that $20,000 becomes $10,000.

3. What your accountant will actually certify. A low-overhead consultant may run 20% expenses. A contractor with materials and payroll may run 60%. One of you should never take the flat 50%. The other has no choice.

4. Whether any document already shows expenses above 50%. If third-party paperwork in your file shows an expense ratio higher than 50%, the flat 50% option is off the table. It cannot be used.

5. Which deposits survive the review. Transfers between your own personal accounts, loan proceeds, gifts, refunds, and anything you cannot explain come out of the total before the math even starts.

6. Overdraft and NSF history. A handful gets explained. A pattern can end the file.

7. Whether your income is seasonal. Landscaping, farming, snow removal, tourism — those files require 24 months so the slow season is in the average. Twelve months is the standard everywhere else.

There is only one way to find out which of the four numbers is yours: someone has to actually read your statements.

No calculator on the internet can do it, because the answer is not in your deposits — it is in how your money moves. That review is the first thing we do, and it happens before anything touches your credit.

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No SSN required. Takes about 2 minutes.

Who is not a fit

W-2-only borrowers, who should use a regular loan. Anyone self-employed less than one year. Anyone whose business has not been open two years. Borrowers running personal and business activity through one account with no separation. Heavy overdraft or NSF activity. Under 25% ownership when using business statements. Restricted industries, including cannabis.

Choose Personal Or Business Statements

Personal statements work best when revenue lands in the business account first and gets transferred out to you. Business statements work best when income deposits into the business account and stays there. Statements must come from the same account, run consecutively, and be the most recent available. Multiple accounts of the same type are allowed. Mixing the two documentation types on one loan is not.

Provide 12 Or 24 Months Of Statements

Twelve months is the standard starting point. Twenty-four months is required when income is seasonal — landscaping, snow removal, agriculture, tourism, farming — so the slow months are inside the average. Every page must be included, blank pages too. Screenshots and transaction printouts are not accepted.

Document The Business

A short business narrative, proof of ownership, and verification that the business exists — completed within 10 business days of closing. You must be self-employed at least two years and the business must have been open at least two years. Less than two years can work if you have two years of documented employment in the same line of work. Less than one year is not allowed.

Income Gets Calculated

Personal statements — two options. Option 1: total qualifying deposits divided by 12. Option 2: total gross 1099 income plus year-to-date deposits, averaged over the months that apply.

Business statements — three options. Option 1: net income from an accountant-prepared profit and loss statement, with deposits backing it up within 20%. Option 2: an accountant-issued expense letter that sets your real expense ratio. Option 3: a flat 50% expense factor applied automatically, with no accountant documentation required. Lower expense ratios produce higher qualifying income — which is why accountant documentation often unlocks more loan.

Structure The Loan

Once qualifying income is locked, the loan gets built around it — purchase or refinance, primary or investment, fixed or interest-only. Final terms depend on credit, reserves, loan-to-value, and property type.

Requirement	Standard
Minimum credit score	620. At 620, debt-to-income is capped at 43% and loan-to-value at 75%. A 660 score lifts the debt-to-income cap to 50%. Higher scores unlock better terms.
Maximum loan amount	Up to $3,500,000 at 70% loan-to-value with a 700 score, owner-occupied, 1 to 4 units. Second homes and cash-out cap at $3,000,000.
Maximum loan-to-value	Up to 89.99% on a primary residence with a 740 score. Lower on second homes and investment property.
Maximum debt-to-income	Up to 50% with a 660 score or better. Capped at 43% between 620 and 659.
Self-employment history	Two years self-employed and business open two years. Less than two years works with two years of documented same-line-of-work history. Less than one year is not allowed.
Business ownership	At least 25% documented ownership when using business statements. EIN verification required.
Reserves	3 to 12 months, depending on credit, loan-to-value, occupancy, and loan size. Loans over $2,500,000 typically require 9 to 12 months.
Occupancy	Primary residence, second home, or investment property. 1 to 4 units.
Terms	15-, 30-, and 40-year fixed. 5/6 and 7/6 adjustable. Interest-only on qualifying tiers.
Cash-out refinance	Allowed, with limits based on credit, loan-to-value, and tier.
State restrictions	Not available in New York. Texas home equity cash-out is 30-year fixed only, 1 unit, 80% loan-to-value max. Hawaii lava zones 1 and 2 are not allowed.

Counts As Income	Usually Excluded
Regular business revenue and customer payments	Transfers between your own personal accounts
Platform payouts from YouTube, TikTok, Patreon, Substack, Stripe	Loan proceeds, gifts, and tax refunds
Brand deal and sponsorship deposits	Large unusual deposits with no documentation
Royalty and residual deposits	Inheritance and one-time windfalls
Business-to-personal transfers, when using personal statements	Business activity inside a personal account, when using business statements
Consistent, explainable, recurring deposits	Deposits you cannot identify or explain

Two things that catch borrowers off guard

First, a large or unusual deposit triggers a request for a written explanation and backup. If the backup does not come, the deposit comes out of the calculation. Second, overdrafts and NSF activity in the last 12 months have to be explained, and a heavy pattern can end the file. Clean accounts close faster.

Feature	Regular Mortgage	Bank Statement Loan
Income documentation	Two years of tax returns, W-2s, pay stubs	12 or 24 months of bank statements
Income basis	Net income after write-offs	Actual deposits before write-offs
Minimum credit score	Typically 620	620
Maximum debt-to-income	Typically 45% to 50%	Up to 50% with a 660 score
Loan amount	Conforming and high-balance limits	Up to $3,500,000
Rate	Lower	Higher — but the real comparison is approval versus no approval
Tax returns required	Yes	No
Best for	W-2 earners and self-employed borrowers with few write-offs	Self-employed borrowers, creators, and 1099 earners with real write-offs

Myth: These are subprime loans.

They are not. Bank statement loans are built for credit-worthy borrowers whose income does not fit the agency box. Plenty of these borrowers have 720-plus credit and serious assets. They just earn money in a way a computer model cannot read.

Myth: No tax returns means no paperwork.

You still provide 12 to 24 months of statements, a business narrative, proof of ownership, EIN documentation, credit, and assets. It is full documentation through a different lens.

Myth: The rate is so much higher it is not worth it.

The rate is higher. The spread is usually smaller than people expect. And if a regular loan will not approve you — or will only approve you for half the house — the comparison was never rate versus rate. It was the right house versus settling.

Myth: You need a 700 credit score.

You need a 620. At 620, debt-to-income is capped at 43% and loan-to-value at 75%. A 660 opens the debt-to-income cap to 50%. A 740 opens loan-to-value to 89.99%.

Is a bank statement loan harder to get than a regular mortgage?

No. It is not harder, it is documented differently. The credit floor is 620, the same as most regular loans. What changes is that income is calculated from your deposits instead of your tax returns. The rate is higher and the down payment is usually larger, but a self-employed borrower with legitimate write-offs will often qualify for two to three times more loan than a regular mortgage would allow.

Can I qualify for a mortgage without tax returns?

Yes. Bank statement loans are built for this. We use 12 or 24 months of bank statements instead of tax returns to calculate qualifying income from your actual deposits.

Why do two borrowers with the same deposits get different qualifying incomes?

Because deposits are not income until a calculation method is applied, and there is more than one method. Business statements can run through a flat 50% expense factor, an accountant-issued expense letter, or an accountant-prepared profit and loss statement. Personal statements use a straight 12-month average with no expense factor at all. Your ownership percentage, your real expense ratio, and which account the money lands in first all change the final number. On $480,000 of annual deposits, the spread between methods can be $8,000 a month in qualifying income.

How many months of bank statements do I need?

Twelve months is the standard starting point. Twenty-four months is required when income is seasonal — landscaping, agriculture, tourism, farming — to confirm the full annual pattern. Statements must be from the same account, consecutive, and the most recent available.

Can I combine personal and business bank statements?

No. You use one or the other. Combining personal and business bank statement documentation on the same loan is not allowed. Multiple accounts of the same type may be used.

Do I need an accountant to qualify?

Not always. On business statements there are three calculation paths: an accountant-prepared profit and loss statement, an accountant-issued expense letter, or a flat 50% expense factor applied automatically with no accountant documentation at all. You only need an accountant if you want a lower expense ratio applied — which produces higher qualifying income. One exception: if any third-party document in your file already shows an expense ratio above 50%, the flat 50% option cannot be used.

What credit score do I need for a bank statement loan?

620. At 620, debt-to-income is capped at 43% and loan-to-value at 75%. A 660 score raises the debt-to-income cap to 50%. Higher scores unlock higher loan amounts and loan-to-value up to 89.99% at 740.

What is the maximum bank statement loan amount?

Up to $3,500,000 at 70% loan-to-value with a 700 score, owner-occupied, 1 to 4 units. Second homes and cash-out refinances cap at $3,000,000. Specific tier and occupancy combinations can lower these caps further.

Can I use a bank statement loan to buy an investment property?

Yes. Primary residences, second homes, and investment properties on 1 to 4 units all qualify. If you would rather qualify on the property’s rent than on your personal income, a DSCR loan may be the better fit.

Can I do a cash-out refinance with a bank statement loan?

Yes. Cash-out is allowed, with limits based on credit, loan-to-value, and tier. Texas home equity cash-out is allowed only on a 30-year fixed, 1 unit, 80% loan-to-value maximum.

What if I have only been self-employed for one year?

Less than two years can be considered if you have at least two years of documented employment in the same line of work or a closely related field. Less than one year is not allowed.

What disqualifies a bank statement loan?

Heavy overdraft or NSF activity, falling earnings, unexplained large deposits, mixing personal and business documentation, less than one year self-employed, less than 25% ownership when using business statements, a business open less than two years, or a restricted industry such as cannabis.

Are bank statement loans available in every state?

We are lending in 49 states. New York is excluded. Texas home equity cash-out is 30-year fixed only, 1 unit, 80% loan-to-value maximum. Hawaii lava zones 1 and 2 are not allowed.

Your deposits already exist. The only open question is which calculation your file qualifies under — and that answer lives in your statements, not on a website. Send them over and we will run the real number. Soft credit pull only.

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No SSN required. Takes about 2 minutes.