Non-QM / bank statement
Qualify on the income you actually make, not what your tax return shows.
Short answer
Bank statement loans qualify self-employed borrowers on 12 to 24 months of real bank deposits instead of tax returns. If your returns understate what you actually earn, this is the fix. It is a fully underwritten mortgage, documented differently, not a no-doc loan. I structure these files every week.
Who this is for
- Business owners and entrepreneurs whose tax returns understate real income
- 1099 contractors, commission earners, and gig professionals
- Self-employed buyers turned down by a lender that only knows W-2 files
- Strong earners with heavy, legitimate write-offs
What it takes to qualify
- Self-employment history, typically around two years in the same business.
- 12 to 24 months of personal or business bank statements showing consistent deposits.
- On business statements, an expense factor is applied to estimate net income. Your real margins can often justify a better factor with a CPA letter or profit-and-loss statement.
- Credit, reserves, and a down payment sized per program. These loans generally expect more skin in the game than agency loans.
How it works with me
A process you can see the whole way through
A deposit review, not a quiz
Send me your statements and I run the same analysis an underwriter will, before you apply. You get a real income figure, not a guess.
Pick the right doc path
Personal statements, business statements, 1099-only, or profit-and-loss. We choose the program that reads your income most favorably and honestly.
Package it like a pro
Explanations for large deposits, a clean expense-factor story, reserves documented. Files structured this way get approved instead of interrogated.
Close, then optimize
We close the purchase, and I calendar a review to refinance you into cheaper financing when your tax filings support it.
What to know before you decide
Why tax returns fail entrepreneurs
You run your business to minimize taxable income. Every legitimate write-off shrinks the number an agency underwriter is allowed to use, so the tax strategy that saves you money in April blocks your mortgage in June. Bank statement underwriting looks at what actually flows into your accounts instead. Deposits are analyzed month by month, large or irregular items get explained, and the result is an income figure that reflects the business you actually run.
Non-QM does not mean no-doc. Ability-to-repay rules still apply, and the file is fully underwritten. The 2000s-era stated-income loan is gone. What changed is the evidence, not the standard.
Personal vs business statements
Personal statements are cleaner when you pay yourself consistently, because deposits from your business read as income with little adjustment. Business statements capture the full revenue picture but get an expense factor applied to approximate what the business keeps. Which set tells your story better depends on how money moves through your accounts, and picking the right one is half the structuring work. Transfers between your own accounts do not count as income, so co-mingled accounts need cleanup before we submit.
The honest tradeoffs
Bank statement pricing usually runs somewhat above agency pricing, and down payment expectations are higher. That is the cost of qualifying on your real income. Two things make it worth it for the right borrower: the loan closes, and it is not permanent. Many of my clients refinance into conventional financing later, once their tax filings catch up with their income. If a full-doc loan works for you today, I will tell you that first. Other non-QM paths exist too, including 1099-only, profit-and-loss, and asset-based programs, and part of my job is picking the cheapest door you can actually walk through.
Bank statement vs full-doc, side by side
| Bank statement loan | Full-doc conventional | |
|---|---|---|
| Income evidence | 12 to 24 months of bank deposits | Tax returns, W-2s, pay stubs |
| Write-off penalty | None, deposits speak for themselves | Every deduction lowers qualifying income |
| Underwriting standard | Fully underwritten, ability-to-repay applies | Fully underwritten, agency guidelines |
| Typical cost | Somewhat higher pricing, larger down payment | Best available pricing for those who qualify |
| Best for | Self-employed with strong real cash flow | W-2 earners and owners with clean returns |
Qualitative comparison. Program terms vary.
Rates and terms subject to change without notice. Not a commitment to lend. Not available in all states. This is not tax, legal, or financial advice. Consult a qualified professional for your specific situation.
Run your own numbers first
Not sure what your numbers support? The affordability calculator gives you a working payment picture from income and debts, and we translate deposits into qualifying income when we talk.
Open the calculatorsRelated programs
Non-QM / bank statement: common questions
Can I really get a mortgage without tax returns?
Yes. Bank statement programs qualify you on 12 to 24 months of deposits instead of returns. The loan is fully underwritten and ability-to-repay rules still apply, so it is a legitimate mortgage, not a loophole. It exists because tax returns are a poor measure of what a well-run business actually earns.
How many months of bank statements do I need?
Most programs use 12 or 24 months. Twenty-four months smooths out seasonality and usually reads stronger for businesses with uneven revenue. Twelve months can work well when the recent year is clearly your best. I run both views and use whichever presents your income most accurately.
Can I use business bank statements instead of personal?
Yes. Business statements capture full revenue, then an expense factor is applied to approximate what the business keeps. If your real margins are better than the standard factor, a CPA letter or profit-and-loss statement can often improve it. Personal statements work better when you pay yourself consistently. We pick whichever tells the truer story.
Do transfers between my own accounts count as income?
No. Underwriters exclude transfers between your accounts, and heavy co-mingling muddies the analysis. If your business and personal money mix freely, we clean that picture up before submitting. A month of tidy account behavior before applying can genuinely change the outcome.
Is a bank statement loan the same as the old stated-income loans?
No. Stated-income lending died with the last crisis. Bank statement loans verify income, just from deposits instead of returns, and federal ability-to-repay rules apply to every file. You will document credit, assets, and reserves like any borrower. The evidence changed. The underwriting standard did not.
Can I refinance into a conventional loan later?
Often, yes, and I plan for it. Once your tax filings reflect your real income, usually after a year or two of stronger returns, a conventional refinance can lower your cost. I calendar that review for my bank statement clients so the loan they close is a step, not a ceiling.
How much do I need to put down on a bank statement loan?
More than an agency loan, generally, and the exact figure depends on credit, reserves, and the program. A larger down payment also improves pricing meaningfully in non-QM. On our first call I will lay out the real ranges for your file rather than quoting a number that only fits perfect scenarios.
Fine-tune your Non-QM / bank statement plan
Send the property, purpose, timing, and numbers you already know. The email opens prefilled for this Non-QM / bank statement page so the review starts in the right lane.
MortgageOne Inc. is licensed for consumer mortgage lending in 41 states and Washington, DC. Chris Lamm is individually licensed in 19 states.