Your tax returns don't tell the whole story
If you own a business, freelance, drive for a living, or run a 1099 side hustle, your write-offs can make your tax returns look like you earn much less than you do. A bank-statement loan is a non-QM program that looks at the deposits in your personal or business bank statements, typically over 12 or 24 months, to figure out qualifying income instead of using your tax returns.
Common fits:
- ✓Business owners and LLC/S-corp owners
- ✓Freelancers, contractors, and gig workers
- ✓Real estate agents, sales and commission earners
- ✓Investors buying a rental property (available in most states; ask about yours)
Primary-residence and second-home loans through our team are available for Idaho properties only.
How it typically works
- 1.We review your 12 or 24 months of bank statements.
- 2.An expense factor (or a CPA/tax-preparer letter or P&L, depending on the program) gets applied to business deposits to arrive at qualifying income.
- 3.Credit, down payment, reserves, and the property are reviewed like any other loan.
Program rules, required down payment, and pricing differ by lender and borrower profile. These loans usually cost more than conventional loans, so we'll compare them side by side with your other options, including conventional, if your returns would qualify.
Free self-employed checklist (what to gather)
Free self-employed checklist
- 12–24 months of business and/or personal bank statements (all pages)
- Proof you've been self-employed at least 2 years (business license, CPA letter, or registration). Some programs allow less.
- Your CPA or tax preparer's contact info, for an expense-ratio letter if required
- Year-to-date profit & loss statement (some programs)
- Explanation of any large or unusual deposits
- Two months of statements showing funds for down payment and reserves
- Entity documents (articles, operating agreement) if the business account is used
- Photo ID, and the property address or purchase contract if you have one
Tip: keep business and personal money in separate accounts and avoid unexplained cash deposits before you apply.
FAQ
Do I need tax returns?
Typically not for income on bank-statement programs, but the lender may still need a signed IRS 4506-C form or other verification.
Is this a "no-doc" loan?
No. Your deposits are your documentation.
Can I use it for a rental?
Yes. For pure rentals, compare it with our DSCR loan.
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Jensen Lending Team · Powered by Fulcrum Home Loans
Nathan Jensen, NMLS #1692830 · Fulcrum Home Loans, Company NMLS #1926444 · NMLS Consumer Access
147 Main Ave E, Twin Falls, ID 83301 · (208) 405-5659 · nathan@fulcrumhomeloans.com
Equal Housing Opportunity. We are equal credit opportunity.
Credit approval is based upon borrower meeting all underwriting requirements for a qualified borrower. Terms and conditions are subject to change without notice. This is not a commitment to lend. Not all borrowers will qualify.
Jensen Lending Team is a DBA licensed in Idaho and powered by Fulcrum Home Loans. For Idaho regulatory information, contact the Idaho Department of Finance, Consumer Finance Bureau.