Self-Employed & Bank Statement Loans

Business owners, contractors and 1099 earners often write down taxable income legitimately, which can make a standard tax-return calculation look thin. Bank-statement, profit-and-loss and asset-depletion programs qualify from deposits or assets instead. These sit outside agency guidelines, so terms vary by investor.

• Business owners and partners
• Independent contractors and 1099 earners
• Borrowers with substantial assets but modest reported income

• Income can be evaluated from business deposits or assets rather than tax returns alone
• Available on primary homes, second homes and, at some lenders, investment property
• Often the workable route when a standard calculation falls short

• Pricing is generally higher than a comparable agency loan
• Down-payment and reserve expectations are typically greater
• Documentation requirements are specific — the right months of statements matter
• Guidelines differ substantially between investors

These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.

• A verifiable self-employment or 1099 history under the program's rules
• Business bank statements, a profit-and-loss statement or qualifying assets
• Credit review under the investor's guidelines
• An acceptable property and appraisal

• Monthly payment estimator
• Home affordability estimator
• Side-by-side loan comparison