Bank Statement Mortgage for Business Owners and No Tax Returns Required

Often, self employed borrowers have a very hard time getting a mortgage loan approval.  So business owners run into issues when buying a home.  Well, we have a mortgage loan option which is lenient on previous credit issues.  But more importantly it allows us to use the borrower’s bank statements to calculate income.  Therefore this self employed bank statement mortgage provides a much needed alternative to tax returns.

Self employed borrower bank statement mortgage

Self employed borrower bank statement program

 Benefits of Bank Statement Mortgage

  • Flexible guidelines
  • Favorable terms
  • Understanding
  • Alternative solution
  • Unique
  • Up to $2,000,000 loans

Buyers with at least 20% down have access to this product which is more forgiving in the areas of credit.  Unlike FHA, Fannie, Freddie, or VA, there are no tax returns required.


Characteristics of the Bank Statement Mortgage include:

  1. 12 months bankruptcy discharge or 24 months seasoning from foreclosure or short sale
  2. Self employed only
  3. Not for limited credit borrowers
  4. Average 24 months bank statements **
  5. Requires a borrower signed P&L for most recent year & YTD
  6. NC, SC, & VA borrowers
  7. $150,000 – $2,000,000 loan size limits
  8. Primary & secondary residences only
  9. Single family residences, townhomes, and condos only
  10. 6 months asset reserves required


** Bank statement mortgage average requirements

  • Personal accounts:  100% of deposits, averaged over 24 months
  • Business accounts:  100% gross deposits minus withdrawals, averaged over 24 months (personal bank accounts that serve as business accounts must be underwritten as business accounts)
  • Multiple bank accounts, either personal and/or business may be used
  • Statements must be consecutive and reflect the most recent months available
  • Transfers between personal accounts will be excluded
  • Transfers from a business account to a personal account are acceptable
  • Unusual deposits must be documented


If you are self employed and want to purchase a home by using bank statements and a profit and loss, give our team a call to discuss your options.

Posted by Dietchi Thomas on


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