A mortgage review built around your deposits, not your tax returns.
Explore alternative documentation options for eligible self-employed borrowers whose tax returns do not reflect the full picture. Available options are subject to application review, verification, lender guidelines and underwriting approval.
(938) 201-5656Program availability and eligibility depend on borrower profile, property, credit, income, equity, documentation, lender guidelines, and underwriting approval. This is not a commitment to lend or extend credit. Uptiq Premier Mortgage, LLC | NMLS 2362651. Equal Housing Opportunity.
Quick program summary
A bank statement loan is a non-QM program where a lender may review personal or business bank deposits over a set period in place of tax returns to establish qualifying income.
- Alternative income documentation for eligible self-employed borrowers
- Personal or business bank statements may be reviewed instead of tax returns
- 12-month and 24-month statement options on many programs
- Purchase, rate-term refinance and cash-out scenarios may be considered
- Primary residences, second homes and investment properties may each be eligible
What is bank statement loans?
Bank statement programs exist because business owners legitimately write off expenses. Net income after deductions can understate what the business actually deposits, which is where a standard tax-return review falls short.
Instead of tax returns, W-2s or pay stubs, the lender reviews a defined series of bank statements and applies an expense factor or a CPA-supported figure to arrive at qualifying income. The method varies by lender.
These are non-QM loans. Transactions commonly considered include purchases and refinances on primary residences, second homes and investment properties.
Before requesting a review, it helps to know which accounts receive business deposits, how long the business has operated and whether deposits come from the business, clients or a mix.
Who may want to explore it?
May be worth exploring if you are self-employed and write off significant business expenses
Could be considered for business owners with strong deposits but modest taxable income
Options may be available for freelancers, consultants and agency owners
May fit borrowers whose most recent tax return does not reflect current earnings
Could be considered where a co-borrower is W-2 and the primary earner is self-employed
What this program may offer.
Qualifying income may be derived from reviewed deposits rather than net income on a tax return.
Programs commonly offer a 12-month or 24-month statement review period, subject to lender guidelines.
Many lenders accept either personal or business bank statements, each with its own calculation method.
Primary, second home and investment property scenarios may each be reviewed.
Bank statement documentation may be used for purchases, rate-and-term refinances and cash-out requests.
A licensed professional structures which account set and period present your income most accurately.
Important considerations
- Deposits must generally be traceable to the business; transfers between your own accounts are typically excluded.
- Lenders apply an expense factor or CPA-supported figure, so gross deposits are not the qualifying income.
- Length of self-employment and business licensing documentation are usually part of the review.
- Large or irregular deposits may require a written explanation and supporting documents.
- Non-QM pricing and terms differ from agency loans and are confirmed only after review.
Options we can review
- 12-month personal bank statement review
- 24-month personal bank statement review
- Business bank statement review with an expense factor
- Combination scenarios with a W-2 co-borrower
- Purchase, rate-and-term refinance and cash-out refinance
Three steps, no guesswork.
Understand which statement period and account type may present your income most accurately.
Share the basics of your business and property goal through the Guide. No tax returns are requested to start the conversation.
A licensed mortgage professional reviews the deposit picture against lender calculation methods and outlines options that may be available.
Frequently asked questions.
Most programs review either 12 or 24 consecutive months. Which period applies depends on the lender, the business and the structure of the file.
It depends on where deposits land and how the lender calculates income. A licensed professional can compare both approaches before anything is submitted.
No. Lenders typically exclude transfers between your own accounts and non-business deposits, then apply an expense factor to the remainder.
Some business bank statement programs accept a CPA or licensed tax preparer statement to support an expense ratio. Requirements vary by lender.
Lenders generally look for a documented history of self-employment. The required length varies by program and is confirmed during review.
Investment property scenarios may be considered on many programs. For rental properties, a DSCR review may also be worth comparing.
No. Bank statement programs are non-QM loans that use alternative income documentation. Credit, equity and capacity are still reviewed.
Other paths worth comparing.
Ready to see what bank statement loans could look like for you?
Start with the UPM Mortgage Guide, then review possible options with a licensed mortgage professional.
(938) 201-5656Program availability and eligibility depend on borrower profile, property, credit, income, equity, documentation, lender guidelines, and underwriting approval. This is not a commitment to lend or extend credit. Uptiq Premier Mortgage, LLC | NMLS 2362651. Equal Housing Opportunity.