These loans are ideal for self-employed individuals, freelancers, and business owners who have strong cash flow but may not show sufficient income on tax returns.
Lenders review deposits from your bank statements over 12 or 24 months and apply an expense factor to estimate your true income, depending on your business type.
Most lenders require a minimum credit score between 620–680, though higher scores can help secure better rates and terms.
A 12 or 24 month bank statement loan is a type of non-QM (non-qualified mortgage) loan that allows borrowers to qualify using their bank statements instead of traditional income documents.
Lenders review either 12 or 24 months of personal or business bank statements to calculate your average monthly income. This approach is especially useful for:
Rather than focusing on taxable income, lenders look at consistent cash flow, giving you a fair opportunity to qualify based on how you actually earn.
1. Flexible Income Verification
No need for W-2s or tax returns. Your income is calculated using deposits from your bank statements, making it ideal for those with write-offs or variable income.
2. 12 or 24 Month Options
Choose between submitting 12 or 24 months of bank statements.
12 months may help if your income has recently increased
24 months can provide a more stable average for consistency
3. Personal or Business Statements Accepted
You can qualify using either personal or business bank statements. Some lenders may apply an expense factor to business accounts, but it still offers flexibility.
4. Higher Loan Limits Available
These programs often allow higher loan amounts compared to traditional loans, making them suitable for primary homes, second homes, or even investment properties.
5. Credit Flexibility
While good credit helps, these loans typically have more flexible credit requirements than conventional mortgages.
6. Down Payment Options
Down payments usually start around 10–20%, depending on your profile, loan size, and lender guidelines.
7. Property Types Covered
Eligible for:
Primary residences
Second homes
Investment properties
1. Designed for Self-Employed Borrowers
Traditional loans often undervalue self-employed income due to deductions and write-offs. This program focuses on real cash flow instead.
2. Simplified Approval Process
Fewer documents, less complexity. You don’t need to prepare extensive tax documentation or explain every deduction.
3. Faster Path to Approval
With reduced paperwork and a more straightforward income calculation, approvals can be quicker compared to traditional underwriting.
4. Better Reflection of Your Financial Reality
If your bank account shows strong, consistent deposits, that’s what matters. This approach aligns with how modern professionals earn.
5. Opportunity to Qualify When Others Say No
If you’ve been declined for a conventional loan due to income structure, this option can open new doors.
A 12 or 24 month bank statement loan is more than just an alternative financing option—it’s a solution built for today’s workforce. Whether you’re self-employed, running a growing business, or earning through multiple streams, this program gives you the flexibility to qualify based on your real income.
If traditional mortgage requirements have held you back, this could be the opportunity to move forward with confidence. With the right lender and proper guidance, your path to homeownership or investment just became much more accessible.
