What is a bank statement loan?
A bank statement loan is a mortgage for self-employed borrowers that calculates income from 12 or 24 months of personal or business bank deposits instead of tax returns. Business deposits are reduced by an expense factor or a CPA-provided ratio. With strong credit, some programs reach about 90% LTV on a primary-home purchase. Terms vary by lender.
Quick example: a sole owner shows $240,000 of eligible business deposits over 12 months, and the lender treats the business as a small business with a 30% expense factor.
| Monthly average: $240,000 ÷ 12 | $20,000 |
| Less 30% expense factor: $20,000 × 30% | −$6,000 |
| Qualifying monthly income | $14,000 |
| Maximum total monthly debt at 50% DTI: $14,000 × 50% | $7,000 |
Illustrative assumptions, not a quote. The expense factor, DTI limit and eligible deposits are set by each lender.
The rulebook vs. the lender vs. your actual file
- Public legal framework: For a home you live in, a bank statement loan is a consumer mortgage. Under the CFPB’s Ability-to-Repay rule (12 CFR 1026.43) the lender must make a reasonable, good-faith determination that you can repay, using reasonably reliable third-party records; bank statements are financial-institution records the rule recognizes. These loans are typically non-QM.
- Private lender matrix: There is no Fannie Mae, Freddie Mac or FHA bank-statement guideline. Each non-QM lender sets its own statement period, expense method, credit tiers, LTV, DTI and reserves.
- Your file: Time in business, deposit trend, account structure, credit, down payment and the property have to tell one consistent story.
Bank statement guides by topic
Bank Statement Loan Requirements
Credit tiers, maximum LTV, DTI to 50% (55% with conditions), reserves, self-employment history, credit events and the documents to prepare, with a worked DTI example.
Read the guide →Expense Factor vs CPA Ratio
How lenders pick 15%, 30% or 50% by business type, when a CPA or tax-preparer ratio can replace it, and how ownership percentage changes the result.
Read the guide →12 vs 24 Months of Statements
Which period qualifies you for more depends on your trend. Worked examples for a growing and a declining business, plus how pricing and gift rules can differ.
Read the guide →Which Deposits Count
What lenders count as income, what they exclude (transfers, loan proceeds, refunds, unsourced large deposits) and how a year of statements is cleaned up.
Read the guide →Bank Statement Program Overview
The full program page: typical 2026 terms, what lenders look at, a worked example from deposits to loan size, and when tax-return, 1099 or P&L documentation is cheaper.
Read the overview →Compare: P&L-only loans
If a CPA-prepared profit-and-loss statement tells a cleaner story than your deposits, a P&L-only program may fit better.
See P&L loans →Best currently available terms at a glance (2026)
| Item | Best currently available among published programs (varies by lender) |
|---|---|
| Primary-home purchase | Up to about 90% LTV with about 680+ credit on loans up to about $1M; up to 90% with about 700–720+ on loans up to about $1.5–2M |
| Lowest credit score | About 620, at up to about 80% LTV on a purchase up to about $1M |
| Largest loan | About $4M on a primary home at about 70% LTV with 720+ credit |
| Debt-to-income | Up to 50%; up to 55% on a purchase or rate-and-term refinance with about 680+ credit and about 70% LTV or less |
| Expense factor | About 15% service / 30% small business / 50% larger business; CPA ratio accepted with a 10% minimum at some programs |
| Reserves | As little as none on loans up to about $1.5M (about 3 months above 75% LTV); waived on some primary purchases below 70% LTV |
| Credit events | From 12 months after bankruptcy, foreclosure or short sale at up to about 70% LTV on loans up to $1M; 48 months typically removes the restriction |
These are the most flexible tiers LoanFight has seen in current published programs; most files land somewhere inside them, and every lender confirms its own terms.
Bank statement guide: frequently asked questions
Who is a bank statement loan for?
Self-employed borrowers, business owners and independent contractors whose tax returns understate their real cash flow because of legitimate deductions. If your tax returns already qualify you, a full-documentation loan is usually cheaper.
Is a bank statement loan a qualified mortgage?
Usually not. Bank statement loans are typically non-QM. For a home you live in they are still consumer mortgages that must meet the Ability-to-Repay rule in 12 CFR 1026.43.
How much can I put down on a bank statement loan?
With strong credit, some current programs allow up to about 90% LTV on a primary-home purchase, which is 10% down. Lower scores, larger loans, second homes, investment property and cash-out usually mean more down.
Does LoanFight make bank statement loans?
No. LoanFight is an education and matching company, not a lender. You share your scenario through the LoanFight intake form, LoanFight reviews it and then connects you with an appropriate lending partner, which sets final terms.
Self-employed and ready to see your numbers?
Share roughly what you deposit each month, whether you use personal or business accounts, how long you have been self-employed and the home you want. LoanFight reviews the scenario and connects you with an appropriate lending partner. LoanFight is not a direct lender.
Tell Us About Your Deal →Sources and review notes
Ability-to-Repay and income verification for owner-occupied loans: CFPB, Regulation Z, 12 CFR 1026.43 and its official interpretation (financial-institution records as third-party income records). Ranges describe commonly published non-QM self-employed lending terms as of October 2026; they are not any single lender’s guidelines and not a LoanFight quote. All arithmetic was checked line by line.
Educational information only, not an offer, approval or financial, tax or legal advice. LoanFight is not a direct lender and does not set final loan terms. Equal Housing Opportunity.