Bank Statement Mortgage Loans for Self-Employed Entrepreneurs

A bank statement mortgage loan or a "self employed mortgage" lets you qualify for a mortgage using your  instead of W2s or tax returns. Whether you're a small business owner, freelancer, or contractor, we offer flexible home loans built for entrepreneurs like you.

For many business owners with fluctuating income or multiple income streams, a mortgage for 

A bank statement mortgage loan — sometimes called a self employed mortgage — lets you qualify for a home loan using your bank statements instead of W-2s or tax returns. Whether you're a small business owner, freelancer, or contractor, these programs make it easier to get approved for self employed home loans based on real income flow, not outdated paperwork.

For many business owners with fluctuating income or multiple revenue streams, mortgage loans for self employed borrowers  are the only realistic path to homeownership. Traditional lenders often require two full years of W-2 income, which disqualifies 1099 earners and entrepreneurs who are otherwise financially strong. By analyzing deposits and cash flow instead of tax returns, self employed mortgage lenders like LendFriend offer flexibility and speed that traditional banks can’t match.

Key benefits of bank statement loans:

• Accept 1099 income, business deposits, or personal statements

• No requirement for W-2s, pay stubs, or employment verification

• No tax returns required

• Eligible for primary, secondary, or investment properties

If you're tired of being penalized for tax write-offs or inconsistent income, a bank statement mortgage loan may be your best path to homeownership.

Self-employed borrowers can absolutely qualify for mortgage loans, You don’t need traditional W-2 income. Bank statement mortgage programs make it easier by focusing on real deposits and cash flow instead of tax returns. With the right self employed mortgage lender, entrepreneurs can get approved quickly and refinance later for better terms.

Most lenders prefer 24 months of bank statements to show consistent income and earn the best rates. However, you can qualify for a bank statement mortgage with as few as 12 months for a bank statement mortgage. With fewer statements, you may need a higher down payment or stronger credit, but it’s often still the best path for self employed home loans when tax returns don’t tell the full story of your earning potential.

Deposits matter most. Lenders review your total monthly deposits to verify cash flow and income consistency. For mortgage loans for self-employed borrowers, qualification is based on actual revenue, not what’s reported after taking an aggressive tax planning strategy. Self employed mortgage lenders will take into account expenses but they typically rely on a CPA-verified expense ratio to help determine qualifying income accurately.

You can calculate your self employed income by taking an average of all your deposits over the 12 or 24 month period of bank statements and then deducting an expense ratio (provided by your CPA). For instance, if your average monthly gross receipts are $30,000 and your expense ratio is 20%, your "income" will be roughly $24,000.

However, the best (and easiest) way to calculate your monthly income is to have LendFriend do it for you. We'll get you an accurate answer in no time. Get in touch with us today to have your income calculated.

Yes! Bank statement loans are ideal for borrowers with multiple income streams—whether you run several businesses, have 1099 income, side hustles, or freelance work. We’ll structure your application to reflect your full income picture, so you can qualify based on everything you earn.

Yes—you can still qualify for a mortgage if you started your business at least 1 year ago. Lenders want to see consistency, stability, and the likelihood that your income will continue. Here’s how it actually works in practice:

If you’ve been self-employed for at least 12 months and you were working in the same industry before you went out on your own, you may qualify with just one year of returns. For example, if you were a software engineer employed by a company for five years and then launched your own consulting firm last year, a lender may be comfortable treating your new business income as stable—because it builds on your established career.

Typically, lenders will require using a down payment of at least 15% when purchasing a home using a bank statement loan, although 20% will give you access to much better pricing.

Bank statement loans require a 700+ credit score, since these are non-QM loans designed for high-net-worth borrowers using alternative income documentation. However, if you want the best rate you should aim for a 780+ credit score.

Non-QM lending is useful for borrowers with income that doesn’t meet conventional guidelines, such as self-employed individuals, real estate investors, or those relying on assets. Programs like bank statement loans or asset-based lending provide flexibility. Choosing Non-QM lending makes sense when traditional mortgages aren’t available due to documentation or debt-to-income limitations.

Alternative financing options include bank statement loans, asset-based programs, and portfolio lending. For short-term needs, bridge loans and hard money loans may also apply. These alternative loan options for self-employed borrowers address income fluctuations and offer more flexible qualification paths compared to standard mortgages.