Qualify for a mortgage using as little as 12 months of personal or business bank statements instead of traditional tax returns. This alternative documentation loan program is designed for self-employed borrowers, business owners, freelancers, and independent contractors whose tax returns may not accurately reflect their true income.
Whether you’re purchasing a home, refinancing an existing mortgage, or taking cash out, a 12-month bank statement loan offers a flexible Non-QM financing solution with competitive loan amounts, expanded underwriting guidelines, and multiple documentation options.
Why Choose a 12-Month Bank Statement Loan?
A 12-month bank statement mortgage can simplify the qualification process for borrowers with complex income. Instead of relying primarily on taxable income reported on federal tax returns, lenders analyze eligible bank deposits to determine qualifying income. This approach can benefit borrowers who maximize legitimate business deductions while maintaining strong cash flow.
Frequently Asked Questions
Can I qualify without tax returns?
Yes. Qualified borrowers may be able to use bank statements instead of tax returns to document income.
What is a 12-month bank statement loan?
A 12-month bank statement loan is an alternative documentation (Alt Doc) mortgage that allows eligible borrowers to qualify using 12 months of personal or business bank statements instead of traditional tax returns. These Non-QM loan programs are designed primarily for self-employed borrowers, business owners, freelancers, and independent contractors whose taxable income may not accurately reflect their actual cash flow.
Are business bank statements accepted?
Yes. Depending on the loan program and business structure, either personal or business bank statements may be used.
Who qualifies for a bank statement mortgage?
Bank statement mortgages are typically designed for self-employed individuals who have consistent income but may not qualify under conventional lending guidelines. Business owners, entrepreneurs, consultants, freelancers, commission-based professionals, and gig workers are common candidates. Eligibility is based on factors such as documented bank deposits, credit profile, available assets, property type, and overall loan scenario.
Is this a Non-QM loan?
Yes. Bank statement loans are generally offered as Non-QM (Non-Qualified Mortgage) programs designed for borrowers whose income doesn’t fit conventional agency guidelines.
Who is this program best suited for?
Self-employed borrowers, small business owners, consultants, freelancers, independent contractors, commission-based professionals, and gig economy workers often benefit from bank statement loan programs.
Self-Employed Home Loan 600 Credit Score
Self-employed borrowers with credit scores as low as 600 can access flexible home financing through our alt doc mortgage programs. These loans are tailored for business owners, freelancers, and entrepreneurs who may not qualify through traditional income verification.
12 Months Bank Statements – 90% LTV – 680 Credit Score
Go with our 12-Month Bank Statement Loan, which requires only one year of bank statements and employment verification. Borrowers with a 680 credit score can qualify for up to 90% LTV, while those with Non-Prime scores (620+) may still be eligible at slightly reduced LTVs.
This VOE Alt Doc program removes the need for tax returns, offering a simplified path to homeownership for self-employed individuals. Whether you’re a first-time buyer or looking to refinance, this solution provides flexibility without the hurdles of conventional loan requirements.
Super Jumbo Loan Amount Cash Out – $15,000,000
This lender also offers a super jumbo cash out refinance loan ($3,000,000 cash-in-hand). with alternative income documentation with loan amounts up to $15,000,000. This provides a flexible financing option for high-value properties and large loan amounts.
Cash Out LTVs and Credit Scores:
- 90% LTV – 700 Credit Score – $4,000,000
- 90% LTV – 680 Credit Score – $3,000,000
- 80% LTV – 660 Credit Score – $2,500,000
- 75% LTV – 640 Credit Score – $2,000,000
- 70% LTV – 620 Credit Score – $1,500,000
- 70% LTV – 620 Credit Score – $1,000,000
Self-Employment Verification of Employment Options:
- Article of Incorporation/ Operating Agreement
- CPA Letter or any Licensed Tax Professional
- Internet Listing
- Business License
- Operating Agreement
Instead of requiring two years of tax returns, this program offers multiple income verification methods to fit a variety of self-employed business structures. Borrowers may qualify using personal bank statements, business bank statements, 1099 income, or eligible assets, depending on the loan scenario.
Alternative Income Doc Options:
- 12 Months Personal Bank Statements
- 12 Months Business Bank Statements with 3 Months Business Bank Statements
- Profit and Loss Statement: Borrower Prepared and Unaudited
- Asset Depletion – in conjunction and or stand alone income source
Available Terms:
- ARM 5/1
- ARM 7/1
- ARM 5/1 / 10 Year Interest Only rolls into 30 Year Fixed Market Price
- ARM 7/1 / 10 Year Interest Only rolls into 30 Year Fixed Market Price
Available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, Tennessee, Texas, Virginia, and Washington.
Last Updated on 3 weeks ago by Broker Mortgages