Bank Statement Loans · My Mortgage Company
Bank Statement Loans for Self-Employed Borrowers
Your tax returns do not tell the full story. Qualify using your actual bank deposits — no W-2s, no tax returns required. Designed for business owners, freelancers, and 1099 earners in Bakersfield and throughout California.
Key Benefits
Why a Bank Statement Loan?
No Tax Returns Required
Qualify using 12 or 24 months of personal or business bank statements. Your actual cash flow — not your taxable income — is what counts.
Higher Qualifying Income
Self-employed borrowers often show low net income on tax returns due to deductions. Bank statements reflect real deposits, unlocking higher loan amounts.
Flexible Timeline
Only 1–2 years of self-employment history required for most programs — significantly less restrictive than conventional loans, which typically want 2 full years of tax returns.
Primary, Second Home & Investment
Bank statement loans are available for primary residences, second homes, and non-owner-occupied investment properties.
Eligibility
Bank Statement Loan Requirements
Bank statement loans are available to self-employed borrowers, business owners, and independent contractors who can demonstrate consistent cash flow through their bank records.
- 12 or 24 months of personal or business bank statements
- Minimum 620 credit score (660+ preferred for best terms)
- 10% minimum down payment (20% avoids most overlays)
- Self-employed for at least 12–24 months (program-dependent)
- Business ownership documentation (business license, CPA letter, or entity docs)
- For business bank statements: expense factor applied (typically 50% of gross deposits)
- DTI up to 50% in some programs with compensating factors
- Reserves: 3–6 months PITI typical
Common Questions
Bank Statement Loan FAQ
How does income calculation work for bank statement loans?
Lenders analyze your deposits over 12 or 24 months. For personal bank statements, most deposits are counted as income (minus business-related transfers). For business bank statements, lenders apply an expense ratio — typically 50% for service businesses, higher for product-based businesses — to calculate qualifying income. A higher deposit history and consistent income result in a higher qualifying income figure.
What is the difference between a 12-month and 24-month bank statement program?
24-month programs use a longer history to calculate your average monthly deposits — smoothing out seasonal fluctuations. 12-month programs use more recent data, which may benefit borrowers whose income has grown recently. 24-month programs often allow slightly lower rates or higher LTVs. We will run both scenarios for you to find the best outcome.
Is a bank statement loan a Non-QM loan?
Yes. Bank statement loans are Non-Qualified Mortgage (Non-QM) products because they do not follow the Ability-to-Repay / Qualified Mortgage guidelines set by the CFPB, which rely on traditional income documentation like W-2s and tax returns. Non-QM loans are legal and widely available, but they typically carry slightly higher rates than conventional loans to compensate for the alternative underwriting.
Can I use a bank statement loan to buy an investment property?
Yes. Bank statement loans are available for investment properties. Down payment requirements are typically higher (20–25%) and rates will reflect the investment property premium. If the investment property already generates rental income, a DSCR loan (which qualifies based on the property's rent) may be an even better fit.
Self-Employed and Ready to Buy?
Omar will analyze your bank statements and identify your maximum purchasing power — no tax return games required.
My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164 · Broker: Omar L. Ortiz, NMLS #951384, DRE #02056548. Bank Statement loans are Non-Qualified Mortgage (Non-QM) products and are not federally backed. They carry different qualification standards than FHA, VA, USDA, or Conventional programs. Loans subject to credit approval. Not all applicants will qualify. All figures, rates, fee ranges, and examples shown on this page are for informational purposes only and are not a guarantee of rates, fees, loan terms, or qualification. This is not a commitment to lend.