What is a Bank Statement Loan?

Trying to qualify for a conventional home mortgage loan when you are self-employed can prove challenging when it comes to all the income verification requirements. If you are among the estimated 14-million workers in the U.S. earning income from freelance, contract, seasonal, or gig work, it may seem like your path to homeownership is next to impossible going the traditional loan route. But a Bank Statement Loan may be an excellent solution.

Our Simple Access® Non-QM Bank Statement Loan is designed for self-employed and consumers with complex financial situations who may qualify for the loan based on deposits in bank accounts instead of W2 income or tax returns.

How it Works

As an example, Jason is a freelance writer who can provide 12 months of bank statements showing regular business deposits. The program will use 50% of his deposits to support his income claims. Let’s say his business deposits for 12 months are $150,000. To establish his usable annual income, multiply Jason’s total deposits by 50%. Next, divide by 12 to identify his usable monthly income. This value is used to calculate his debt-to-income ratio.

Step 1: Total Deposits: $150,000
Step 2: $150,000 x .50 = $75,000 usable annual income
Step 3: $75,000 / 12 = $6,250 usable monthly income

How You Qualify

To qualify for Luxury Mortgage’s Simple Access® Non-QM Bank Statement Loan, borrowers must have a minimum of one year self-employment history, be able to provide 12 or 24 months of bank statements, and a signed CPA letter verifying your business.

Loan Highlights

• Loan amounts are available up to $3.5MM
• Fixed and adjustable-rate mortgages available.
• No tax returns or W-2s are required.
• Loans are available for all occupancy types including primary residence, second home or investment property.
• Qualify using business and personal bank statements.

*Guidelines subject to change. Please contact Luxury Mortgage for the most up-to-date information. Additional conditions will apply.

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