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Bank Statement Loans
Self-employed? We get it—your tax returns don't tell the full story. Bank statement loans let you qualify using your actual bank deposits instead of W-2s or tax returns. Built for entrepreneurs, freelancers, and business owners.
Who Is This Loan For?
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✅ Self-employed borrowers and business owners
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✅ Freelancers and 1099 contractors
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✅ Entrepreneurs with strong revenue but heavy tax write-offs
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✅ Borrowers whose tax returns understate their true income
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✅ Anyone who can't qualify through traditional income documentation
What Is a Bank Statement Loan?
Most mortgage programs require W-2s and tax returns to verify income. That works great for salaried employees—but if you're self-employed, your tax returns often show a much lower income than what you actually earn. That's because you're (smartly) writing off business expenses.
A bank statement loan solves this by using your actual bank deposits as proof of income instead of tax returns.
Here's how it works at Team Malik:
We use 75% of your gross deposits for qualification.
That means if your bank statements show $20,000/month in deposits, we count $15,000/month as qualifying income. The remaining 25% is deducted as a flat expense rate.
This is one of the most powerful programs we offer for self-employed borrowers. We've helped business owners, freelancers, and entrepreneurs across Florida, New Jersey, and Pennsylvania get into homes they couldn't qualify for through traditional channels.
Bank Statement Loan Requirements
Bank Statements
12–24 months of personal or business bank statements. We look at your deposits to calculate qualifying income. Consistent deposits make for a stronger file.
Income Calculation
We use 75% of your gross deposits. Expenses are deducted using a standard 25% flat rate methodology. This is more favorable than many lenders who use 50% expense factors.
Alternative Documentation
In addition to bank statements, we can also work with:
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Profit & Loss (P&L) statements
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CPA letters
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Tax returns (if they help your case)
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1099 forms
We'll use whichever combination paints the strongest picture of your income.
Credit Score
620+ is the typical minimum, though requirements vary by program. Higher scores unlock better rates.
Down Payment
Varies by program, credit score, and loan amount. Typically 10–20% for primary residences.
Property Types
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Primary residences
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Second homes
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Investment properties (in some programs)
DTI Ratio
Calculated using the income derived from your bank statements. Standard guidelines apply (43–50%).
How We Calculate Your Income
Let's walk through a real example:
Total deposits (12 months): $243,000
Monthly average: $20,250
75% qualifying income: $15,187/month
With $15,187/month in qualifying income, you'd have strong buying power for most markets in FL, NJ, and PA.
Important: We exclude transfers between your own accounts, one-time large deposits (like a loan or gift), and other non-recurring items.
We're looking for your regular business income pattern.
Bank Statement vs. Conventional: Quick Comparison
If your tax returns show $60K but your bank deposits show $180K, a bank statement loan lets you qualify on the $180K (at 75%). That's the difference between getting approved and getting denied.
The Bank Statement Loan Process
Step 1 — Pre-Qualification
Send us your most recent 12–24 months of bank statements. We'll calculate your qualifying income and tell you exactly what you can afford.
Turnaround: 1–2 business days.
Step 2 — Document Collection
We'll request your bank statements, a P&L statement or CPA letter (if applicable), and standard documents (ID, assets, credit authorization). Much simpler than a conventional file.
Step 3 — Home Search
With your pre-approval in hand, you're ready to shop with confidence. Sellers and agents take you seriously.
Step 4 — Appraisal & Underwriting
Standard appraisal to confirm the property's value. Underwriting reviews your bank statement income calculation. Timeline: 2–3 weeks.
Step 5 — Closing
Sign, pay closing costs, get the keys. Total timeline: 25–40 days depending on complexity.
Frequently Asked Questions
How many months of bank statements do I need?
Typically 12–24 months. Longer history gives us more data to work with and can strengthen your file. We'll tell you exactly what's needed after reviewing your situation.
Do you use personal or business bank statements?
Either one—or both. If your income flows through a business account, we can use that. If it goes directly to your personal account, that works too. We'll use whichever shows the strongest income pattern.
What if I have large one-time deposits?
We exclude non-recurring deposits like loans, gifts, insurance payouts, or transfers between your own accounts. We're looking for your regular income deposits only.
Why 75%? What's the 25% deduction?
The 25% flat rate represents an assumed business expense ratio. This is actually very favorable—many lenders use 40–50% expense factors. Our 75% qualifying rate means more of your deposits count toward your income.
Can I use a bank statement loan for an investment property?
In some programs, yes. DSCR loans are usually the better fit for investment properties since they qualify on the property's income. But if you want to use your personal income (via bank statements) for an investment purchase, we can explore that option.
Do I still need a good credit score?
Yes—620+ is the typical minimum. Bank statement loans offer flexibility on income documentation, not credit. The better your credit, the better your rate.
**Can I combine bank statements