Self-Employed Bank Statement Loan Checklist
Jensen Lending Team · Powered by Fulcrum Home Loans
Self-employed? Your tax returns may not show what your business really earns, because of write-offs and depreciation. A bank statement loan lets lenders look at the deposits in your bank statements instead. Use this checklist so you know what to have ready before you apply.
This checklist is for your own preparation. Do not email, text, or upload documents or your Social Security number to us. When you're ready, apply through the secure official application, and it will tell you what to provide and how.
1.Who this is usually for
- Business owners, 1099 contractors, gig workers, freelancers, and real estate agents
- Borrowers whose tax returns show lower income than they actually take in
- Typically, a borrower who has been self-employed for about 2 years (program rules vary)
2.12 months vs. 24 months of statements
| 12-month option | 24-month option | |
|---|---|---|
| What's reviewed | Your most recent 12 months of statements | Your most recent 24 months |
| Good fit if | Your income has grown recently | Your income is steady, or seasonal |
| Things to know | A short history can mean stricter program guidelines | Evens out the slow months |
Tip: Have both ready if you can. Your loan officer can help you see which one fits your situation better.
3.Business vs. personal statements
- Personal statements: Usually most of the deposits count, as long as they come from your business.
- Business statements: An expense factor is applied to deposits to estimate income. A lower factor may apply if you can document lower expenses.
- Mixed use: If business and personal money pass through the same account, it can help to say so up front.
- Use the same accounts the whole time. Have every page of every statement, including blank pages.
4.Common supporting items
- All pages of the bank statements for your chosen period (12 or 24 months)
- Proof that your business exists: business license, a CPA/tax preparer letter, or state filing
- A CPA or tax preparer letter confirming you're self-employed and how long you've owned the business. Some programs also ask for your ownership percentage.
- A profit & loss (P&L) statement, if your program asks for one (some programs accept a P&L signed by a CPA or the borrower)
- An explanation of any large deposits that aren't business income (transfers, sales of assets, gifts)
- Proof of assets for the down payment and reserves
- A photo ID, which you'll provide only through the official application
5.Common pitfalls to avoid
- Missing pages or months. Gaps slow things down.
- Unexplained large deposits. Transfers between your own accounts generally don't count as income. Keep a note of where each one came from.
- Overdrafts or NSF fees. Too many can raise questions.
- Switching accounts mid-period. If you did, have statements from both accounts.
- Moving big amounts of cash right before you apply. Talk to a loan officer first.
- Opening new credit (a car, credit cards) while the loan is in process.
- Assuming it's a "no-doc" loan. It still goes through full underwriting. It just uses different documents.
6.Your next step
When you're ready, start the official application at https://homeloanstwinfalls.com/start. You'll get a list of exactly what your situation needs, and a secure way to provide it. Program details: https://homeloanstwinfalls.com/loan-programs/bank-statement
Questions? Nathan Jensen · (208) 405-5659 · 147 Main Ave E, Twin Falls, ID 83301
Nathan Jensen, NMLS #1692830 · Fulcrum Home Loans, Company NMLS #1926444 · Equal Housing Opportunity · We are equal credit opportunity.
NMLS Consumer Access: https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1692830
147 Main Ave E, Twin Falls, ID 83301 · (208) 405-5659
Equal Housing Opportunity. We are equal credit opportunity.
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. State Licensed: ID.
The material found on this website is not from HUD or FHA and has not been approved by HUD or a government agency. 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.
This checklist is for general information only, and program requirements vary. It is not an offer of credit, and approval is not guaranteed. Privacy Policy: https://fulcrumhomeloans.com/privacy-policy