What it is
What a Bank Statement Program actually is.
The tax code rewards self-employed people for aggressive deductions. The mortgage industry, unfortunately, penalizes them for it. Bank statement loans solve that mismatch.
Instead of looking at your tax returns, we analyze 12 or 24 months of bank deposits to calculate your actual qualifying income. That number is usually far higher than your tax return's adjusted gross income.
These are fully amortizing mortgages, not hard money: terms run up to 30 years and the cash-out option lets an owner move home equity into the business. The trade-off is price. Qualifying on deposits instead of tax returns costs something, and that cost shows up in the rate.
Who it suits
Borrowers this program is built for.
None of these is a rule, and matching every line does not qualify anybody. They are the situations where this program tends to be the one worth pricing first.
- Self-employed business owners (2+ years)
- 1099 contractors
- Freelancers, consultants, and gig workers
- Anyone whose tax return understates true income
What it gives you
The parts that make it worth choosing.
No Tax Returns
We qualify on deposits to your business or personal bank accounts.
12 or 24 Months
Choose the look-back period that best reflects your income.
Priced Between Two Poles
Bank statement loans sit above conventional pricing and well below short-term hard money — commonly on the order of half a point to a point and a half over conventional, though the spread moves with the market.
Up to 90% LTV
Strong borrowers can finance up to 90% with no MI.
How the process runs
4 stages, in order.
This is the shape of a real file, written for a demonstration. Any timeline, fee or turnaround named below is invented for the example and is not a commitment — no step here can actually be started, because Copperline Home Loans does not exist and holds no license.
- Document DepositsProvide 12 or 24 months of statements; we calculate qualifying income.
- ApplyStandard application with focus on credit and reserves.
- UnderwriteManual underwriting reviews business profitability.
- CloseThese files are underwritten by hand rather than by an automated engine, so they generally take longer than a conventional purchase.
Questions