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Bank Statement Loans for Business Owners

LendFriend helps self-employed borrowers, business owners, entrepreneurs, and 1099 earners qualify for a mortgage using bank statements instead of tax returns. Our bank statement loan programs are designed for home buyers and homeowners who need a more flexible way to qualify for a purchase or refinance based on real cash flow.

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What Are Bank Statement Loans?

A bank statement loan is a type of self-employed mortgage that allows borrowers to qualify using cash flow shown in personal or business bank accounts instead of relying on traditional tax-return income.

These loans can be especially useful for business owners, entrepreneurs, 1099 earners, and independent professionals whose legitimate deductions reduce taxable income. Lenders evaluate eligible deposits to determine qualifying monthly income, then consider that income alongside credit, assets, debts, down payment, and the overall financial profile.

Bank Statement Mortgage Solutions Across Key States

LendFriend helps self-employed borrowers qualify for bank statement mortgages across some of the country's most competitive housing markets.

In Texas, we work with business owners throughout Austin, Houston, Dallas, and surrounding markets who want their mortgage qualification to better reflect the cash flow their businesses actually generate.

For Florida homebuyers, bank statement financing can be especially valuable for entrepreneurs, real estate professionals, and self-employed borrowers purchasing primary residences, second homes, or luxury properties.

We also help New Jersey borrowers use business or personal deposits to qualify for home purchases and refinances when tax returns do not fully reflect their earning power.

LendFriend also works with self-employed borrowers buying and refinancing homes across Colorado, Virginia, South Carolina, and Maryland, including borrowers with complex business income, significant write-offs, or income that does not fit traditional mortgage documentation.

Bank statement loans may be available for primary residences, second homes, and investment properties, as well as purchases, rate-and-term refinances, and cash-out refinances.

Why Homebuyers Trust LendFriend for Bank Statement Loans

LendFriend Mortgage helps business owners, entrepreneurs, freelancers, contractors, and 1099 earners qualify for bank statement loans using personal or business deposits instead of traditional tax-return income. Whether you're buying or refinancing in North Carolina, Texas, or Illinois, our team helps turn real business cash flow into qualifying mortgage income.

Home Loan Expert

Bank Statement Loan Experts

LendFriend specializes in bank statement mortgages for self-employed borrowers. Our team understands complex business income, recurring deposits, expense factors, and the details that can determine whether a bank statement loan gets approved and closes on time.

No Paystubs or Tax Returns Required

No Tax Returns Required

Bank statement loans allow qualified self-employed borrowers to document income through personal or business bank deposits rather than tax returns. This can be especially valuable when deductions and reinvestment make taxable income look significantly lower than actual cash flow.

Flexible Mortgage Broker

Flexible Income Options for Business Owners

Depending on the program, borrowers may qualify using eligible deposits from personal or business accounts. We help identify the approach that best reflects your income while accounting for transfers, business expenses, and other non-qualifying deposits.

Fast Preapprovals

Fast Bank Statement Loan Preapprovals

Competitive real estate markets move quickly. LendFriend can preapprove qualified bank statement borrowers in as little as 24 hours, giving buyers a clearer understanding of their financing before submitting an offer.

Jumbo loan amounts

Jumbo Bank Statement Loans Up to $7 Million

Self-employed borrowers purchasing higher-value homes may qualify for jumbo bank statement loans using personal or business deposits instead of traditional income documentation. Loan amounts up to $7 million are available for qualified borrowers purchasing luxury homes, second homes, and other high-value properties.

Get a Bank Statement Mortgage Rate Quote

How Income is Calculated for Bank Statement Loans 

Learn how LendFriend Mortgage calculates qualifying income for bank statement loans using 12 or 24 months of personal or business bank statements for self-employed borrowers.

1. Submit Your Bank Statements

All deposits across the chosen 12 or 24 months are added up. This gives lenders a raw view of how much money came into your accounts.

2. We Calculate Your Qualifying Income

Next, we review your deposits, remove non-income transactions and apply the appropriate expense factor to calculate your qualifying income. For a rough estimate before applying, you can also use our Bank Statement Loan Calculator.

3. Pre-Approval and Closing

We match you with the right loan program, handle the paperwork, and guide you through closing. Many borrowers receive pre-approval within 24 hours.

Personal Bank Statements vs. Business Bank Statements

Bank statement loans may allow borrowers to qualify using personal bank statements, business bank statements, or a combination of both.

Personal Bank Statement Loans

Personal bank statement loans may work well when business income is regularly deposited into a personal account. Because the deposits have already reached the borrower’s personal account, lenders may be able to use a higher percentage of eligible deposits when calculating monthly income.

For instances, for borrowers using bank statement loans in Michigan, the lender will review the statements for recurring deposits, unusual activity, transfers between accounts, and any large deposits that require additional documentation.

Business Bank Statement Loans

Business bank statement loans are often used when most revenue remains in a business account. Lenders calculate average deposits and apply an expense factor to estimate the portion of revenue available as qualifying income.

The expense factor may be based on the lender’s guidelines, the borrower’s industry, or a letter from a CPA or tax professional. Businesses with low overhead may be able to document a lower expense ratio, which can increase qualifying income and potential buying power.

Bank Statement Loans We've Closed After Other Lenders Said No

We have helped hundreds of self-employed borrowers qualify with bank statement loans when traditional banks said no. For business owners, entrepreneurs, freelancers, and independent contractors with significant write-offs, bank statement financing can reflect cash flow more accurately than tax returns. These are real scenarios with names and identifying details changed for privacy.

CEO Buys a $2M Home in Austin

The file: Borrower owned a refreshments company generating over $1M in annual revenue, but a traditional lender denied the file because the borrower was self-employed and tax-return income did not support the loan amount.

What LendFriend did: Qualified the borrower using a 24-month bank statement loan that focused on actual business deposits instead of taxable income.

Outcome: Closed on a $2M home in Austin with no tax returns required.

Westlake Owner Closes $770K Refinance

The file: Borrower owned multiple clinics in Texas and wanted to refinance a $770,000 mortgage on a $1.725M home in Westlake. The borrower's tax returns showed dramatically less income than the bank statements.

What LendFriend did: Used a 24-month bank statement loan to qualify the borrower.

Outcome: Refinance completed, giving the borrower a cleaner mortgage structure without being penalized for being self-employed.

Airbnb Landlord Buys $950K Houston Home With No W-2 Income

The file: Borrower owned and operated an Airbnb rental portfolio and wanted to buy a $950,000 home in Houston with an $850,000 mortgage. Tax returns did not show the full strength of the borrower’s rental operation.

What LendFriend did: Used a 12-month bank statement loan focused on real cash flow from the borrower’s rental portfolio.

Outcome: Borrower purchased the home with a high-balance mortgage and did not need traditional W-2 income to make the loan work.

Florida Entrepreneur Obtains $1.75M Loan Despite Tax Write-Offs

The file: Borrower owned a lead generation and ad media company making roughly $1.4M per year, but business write-offs made his tax-return income look almost nonexistent.

What LendFriend did: Qualified him through a 24-month bank statement loan using business deposits instead of tax returns.

Outcome: Borrower qualified for a $1.75M mortgage on a $2.25M home in Boca Raton, even though his tax returns made him look far less qualified than he really was.

Bank Statement Loans Available Nationwide

LendFriend Mortgage helps self-employed borrowers across all 50 states qualify for home loans using bank statement financing. We specialize in competitive markets such as Texas, California, Florida, Illinois, and New Jersey, where traditional income documentation can make approval harder for business owners, freelancers, and independent contractors. Our nationwide lender network includes experienced bank statement loan providers offering flexible options for purchases, refinances, and jumbo bank statement mortgages.

BORROWER TESTIMONIALS

See Why Self-Employed Borrowers Choose LendFriend Mortgage

See how business owners, 1099 workers, and borrowers with non-traditional income have worked with LendFriend Mortgage to find financing that fits their situation.

“Because I'm a small business owner in an area of Florida that suffered a prolonged financial impact from the back-to-back hurricanes in 2024, my credit score had dropped down to 619 just as I was trying to refinance my mortgage and SBA loans. I thought I was going to lose both my home and my business after spending almost a year being turned down by every type of refinancing company I could think of, because I didn't meet their minimum credit score, but when I was about to give up, I was referred to Lendfriend.

I was expecting another, "call us if your credit score increases", response when I talked to Lendfriend's President and co-founder, Eric Bernstein, but instead, after reviewing a few financial details, he told me they'd be able to help me refinance both loans into one, and save thousands on the separate monthly payments I was currently making.

Over the next month, the team at Lendfriend worked together to make each and every step as simple and as smooth as possible. With less than 10 days until closing, I requested that Lendfriend do a credit rescore because my score had increased 70 points since we'd started, and even though I'm sure it must have been very inconvenient at the last minute, they agreed without hesitation and it resulted in 0.87% off of my original estimated interest rate.

I'd almost given up on being able to keep my home and my business and I can't thank or recommend the entire Lendfriend team enough. Eric & Michael Bernstein, Kevin Roost, Morgan Cunningham, and Jen Gonczerek. I think all small business owners looking into a loan will be happy they found Lendfriend.”

Cynthia Elliott Reviewed September 2026

“Eric is my go to guy for all lending needs. This is my third time with Lendfriend and will be back for future purchases and refi!”

Eddie Huang Reviewed February 2026

“Michael Bernstein of LendFriend was great to work with. He spent time with us to figure out what we were looking for in a house and figure out what we could afford.

My husband and I are both self-employed business owners and while some other conventional lenders either turned us away or told us we'd have to forego our deductions on two years of tax returns, LendFriend was more than happy to find a great loan product for us.

The process was easy from start to finish. Thank you, LendFriend team!”

Liz Schultz Reviewed May 2026

“Michael and his Team were always positive, helpful, and timely! We have had many mtg transactions thru out the years and knew the delays to expect but LendFriend was excellent in navigating it all and keeping it moving until the end and the transaction was a success!!”

Charles Reeves Reviewed June 2026

“As a 1099 worker with non-traditional income history, Eric was able to think outside the box and help me find a mortgage for my first home. The company was always problem-solving and the process was seamless.

I have already recommended them to several other friends and colleagues. If you are a non-traditional borrower or are looking for someone that can come up with creative solutions, check out LendFriend!”

Pranay Advani Reviewed April 2026

“LendFriend made my homebuying experience so easy. As a business owner, I heard horror stories about how hard it can be for guys like me to get a mortgage. Thankfully I found LendFriend. Eric and the team had me approved in no time. My rate was great and they closed on time. Couldn't ask for more”

David Marino Reviewed August 2025

FAQs: How Bank Statement Loans Work for You

What is a bank statement loan?

A bank statement loan lets self-employed borrowers qualify using 12 or 24 months of business or personal deposits instead of tax returns. It is built for business owners whose write-offs make their taxable income look far lower than their actual cash flow. Bank statement loans are one type of Non-QM mortgage, underwritten on how the business really performs rather than what is left after deductions.

How many months of bank statements do I need to qualify?

Most programs use either 12 or 24 months. A 24-month program often prices better because it gives the lender a longer track record, while a 12-month program can help when your most recent year is significantly stronger. Our guide to how lenders review your bank statements covers what underwriters actually look for.

Which states do you offer bank statement loans in?

We are licensed in 18 states and originate bank statement loans across all of them, including Texas and Illinois, along with California, Florida, Colorado, Georgia, North Carolina, South Carolina, Virginia, Maryland, New Jersey, Connecticut, New Hampshire, Michigan, Ohio, Oregon, Idaho, and Tennessee.

How is my qualifying income calculated?

The lender totals your eligible deposits over the statement period and applies an expense factor, either a fixed percentage or a figure supported by a CPA letter. Transfers between your own accounts, loan proceeds, and one-time deposits are usually excluded, so the deposit total on your statements is rarely the number that counts. You can estimate yours with our bank statement loan calculator.

Can I get a jumbo loan using bank statements?

Yes. Jumbo bank statement loans are available well above conforming limits, so a business owner can finance a primary residence rather than only a smaller purchase. Reserve requirements and down payment minimums tighten as the loan amount rises.

Can I qualify if I have been self-employed less than two years?

Sometimes. Some programs allow a shorter history when the business is established and the deposits support the income, and there are options built around a single year of 1099 income. If bank statements are not the cleanest fit, a profit and loss loan may work better.

Do bank statement loans have higher rates than conventional loans?

Usually yes, though the gap is often smaller than borrowers expect and varies considerably between lenders. Pricing depends on credit, down payment, reserves, and the expense factor applied to your deposits. Our breakdown of the best Non-QM lenders shows how widely terms differ across the market.

What documents will I need besides bank statements?

Expect to provide identification, proof of business ownership such as a business license or CPA letter, a credit report authorization, and documentation of reserves. You will not need tax returns, W-2s, or pay stubs. Our guide to Non-QM lending explains how these programs differ from agency underwriting.

Learn More About Bank Statement Loans

And our Learning Center gives you access to everything you need to know about bank statement loans, from income calculations and expense ratios to down payment requirements, jumbo options, and underwriting. Read some of our favorite bank statement loan articles below.

Looking for Other Tailored Non-QM Mortgage Solutions  

Having access to hundreds of investors, LendFriend Mortgage is able to find the right financing solution for almost any borrower. That also means that we can make it easy on borrowers who traditionally have a hard time getting financing!

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Borrowers can use a bridge loan to leverage equity in their current home, helping fund the next purchase before the existing home is sold.

Asset Depletion

Asset Depletion Loans

An asset depletion mortgage allows qualified borrowers to use eligible assets such as investment accounts, retirement funds, and other liquid assets to help qualify for a home loan without relying on traditional employment income.

DSCR Loans

Use the property’s rental income to qualify without tax returns, W-2s, or traditional income documentation.