Bank statement loans are one of the most powerful financing tools for real estate investors with non-traditional or LLC-based income. If you're self-employed, earn through an entity, or write off a significant portion of your income for tax reasons, this guide is for you.
What Is a Bank Statement Loan?
A bank statement loan allows borrowers to qualify based on 12–24 months of business or personal bank statements, rather than W-2s, pay stubs, or tax returns. This is a form of non-QM (non-qualified mortgage) loan designed specifically for self-employed borrowers, including LLC owners, sole proprietors, freelancers, and entrepreneurs.
These loans are a game-changer for real estate investors who:
- Run their rental portfolio through an LLC
- Have write-offs that reduce reported taxable income
- Can demonstrate strong cash flow through bank deposits
Have complex income but strong cash flow? Get matched with a lender who offers bank statement loans
How to Qualify for a Bank Statement Loan Using LLC Income
1. Have 12–24 Months of Bank Statements
To verify income, lenders will average your monthly deposits over a 12–24 month period. These can be:
- Business bank statements (most common for LLCs)
- Personal statements (if you pay yourself via distributions or transfers)
Some lenders allow commingled deposits or will accept business statements from an LLC, as long as the borrower can show ownership and operating control.
2. Demonstrate Business Ownership
Lenders will typically require documentation showing you own at least 50% of the LLC. Be ready to provide:
- Articles of Organization or Operating Agreement
- EIN documentation
- K-1s or profit allocation tables (in some cases)
3. Maintain a Strong Deposit Pattern
Lenders will calculate your by applying an expense ratio (typically 50%) to your average monthly deposits. For example:
