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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 qualifying income by applying an expense ratio (typically 50%) to your average monthly deposits. For example:
$30,000 average monthly deposits x 50% = $15,000/month qualifying income
This figure is then used to determine your debt-to-income (DTI) ratio.
Pro Tip: If your business expenses are low, some lenders may accept a CPA letter verifying a lower expense ratio (as low as 20-30%).
4. Meet Credit and Reserve Requirements
Typical requirements include:
- Credit Score: 660–680 minimum
- Down Payment: 10–20% depending on credit
- Reserves: 6–12 months of PITIA (Principal, Interest, Taxes, Insurance, and HOA)
LLC-Specific Considerations
Can an LLC Take Out the Loan Directly?
Yes—some bank statement lenders allow the loan to be vested in the name of the LLC, not the individual. However:
- The borrower must still provide a personal guarantee
- The LLC must be registered and in good standing
Will DSCR Loans Be a Better Fit?
In some cases, DSCR loans may be a better fit if:
- The rental income can cover the mortgage
- You want to avoid documenting income entirely
Learn more about financing investment properties with an LLC
Documents You’ll Need to Apply
| Document | Purpose |
| 12–24 Months Bank Statements | Verifies income via deposits |
| LLC Formation Docs | Proves business ownership |
| Business License or EIN Letter | Verifies legitimacy |
| Personal Credit Report | Assesses credit risk |
| Property Info & Appraisal | Determines loan amount and LTV |
Ready to apply with your LLC income? Submit your scenario and connect with a lender today
Pros and Cons of Bank Statement Loans
Pros:
- No tax returns or W-2s required
- Perfect for LLC or self-employed borrowers
- Often allows for higher loan amounts
- Can close in 21–30 days with the right lender
Cons:
- Higher interest rates vs. conventional loans
- Manual underwriting can take time
- Expense ratios can reduce qualifying income
Curious how this compares to DSCR loans? Read: Bank Statement vs. DSCR Loans: What’s Best for You
FAQ: Bank Statement Loans for LLC Income
Can I use personal bank statements if I’m paid by my LLC?
Yes. Many lenders accept personal statements if they clearly show regular, consistent deposits from your LLC.
Do I need to show profit on my tax return?
No. Bank statement loans ignore tax returns entirely.
Can I qualify if I just formed the LLC?
Usually not. Most lenders require the business to be operating for at least 2 years, even if the LLC was created recently.
What if I own multiple businesses?
You can combine bank statements from multiple businesses if you can document ownership and income flow from each.
Read Nex
- Bank Statement Loans 101: How They Work
- Financing Investment Properties with DSCR Loans: A Guide for LLCs
- Self-Employed Mortgage Guide for Investors
Final Thoughts
Bank statement loans are an incredible tool for real estate investors with LLC income who don’t fit the W-2 mold. With the right preparation, you can qualify for competitive financing—even without tax returns or traditional proof of income.
Stop letting paperwork slow you down. Get started now with a lender who understands investors like you
Get Expert Investment Financing
- Matched with investor-friendly lenders
- Fast pre-approvals-no W2s required
- Financing options fro rentals, BRRRR, STRs
- Scale your portfolio with confidence
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
