Step-by-Step Guide to Getting a Bank Statement Loan for a Primary Home

Buying a home is exciting—but for self-employed professionals, freelancers, or business owners, the mortgage process can feel like a nightmare. Traditional lenders often rely heavily on W-2s, pay stubs, and tax returns, which doesn’t work for borrowers with complex or unconventional income.

That’s where bank statement loans come in.

These flexible, non-traditional mortgage programs allow you to qualify using your actual bank deposits—not your taxable income. This guide breaks down the process of getting a bank statement loan for a primary residence step by step.

What Is a Bank Statement Loan?

A bank statement loan is a type of non-qualified mortgage (non-QM) that lets borrowers qualify based on 12–24 months of personal or business bank statements instead of traditional income documentation like W-2s or tax returns.

• Who it’s for: Self-employed individuals, gig economy workers, freelancers, entrepreneurs, and business owners.
• What it’s used for: Buying or refinancing a primary residence, second home, or investment property.

Yes, you can use a bank statement loan to buy your own home.
You don’t need to be an investor or buying a rental property.

Step 1: Confirm You’re a Good Candidate

Bank statement loans are ideal for borrowers who:

• Are self-employed or own a business (usually for 2+ years)
• Have consistent monthly deposits
• Have strong credit (typically 660+)
• Can make a 10–20% down payment
• Prefer not to use tax returns that may underreport income

Step 2: Choose Personal vs. Business Bank Statements

Lenders will use either:

• Personal Bank Statements: Typically require fewer months (12) but scrutinize spending more.
• Business Bank Statements: Often require 24 months but allow for higher income calculations with expense ratios.

Pro Tip: If your business has high monthly deposits, use business statements. If your personal account reflects your actual income clearly, go with personal.

Step 3: Calculate Qualifying Income

Lenders estimate your income based on deposits—after applying an “expense factor” (usually 50%–70% for business accounts).

Example:

• $20,000/month in deposits
• 50% expense factor
• $10,000/month qualifying income

You must prove this income can support your future mortgage payments under standard debt-to-income (DTI) guidelines.

Step 4: Prepare These Documents

Here’s what most lenders require for a bank statement loan:

• 12–24 months of personal or business bank statements
• Photo ID and Social Security number
• Proof of business ownership (e.g., license or website)
• Credit report (most require 660+)
• Asset statements for down payment/reserves

Want a checklist? Get matched with a lender now to receive a free mortgage prep guide.

Step 5: Shop Lenders That Offer Bank Statement Loans

Not every lender offers this type of financing. Look for lenders that specialize in non-QM loans and have experience with self-employed borrowers.

Consider lenders who:

• Accept both business and personal statements
• Offer competitive rates and flexible terms
• Don’t require tax returns or profit/loss statements

Get connected with trusted lenders who offer bank statement loans. Start here →

Step 6: Get Pre-Approved

Before house hunting, secure a pre-approval letter. This shows sellers you’re a serious buyer and gives you a realistic price range.

During pre-approval, your lender will:

• Review your bank statements and calculate income
• Run a credit check
• Estimate your max loan amount and rate

Step 7: Submit Full Application

Once you’ve found a home:

1. Submit a full mortgage application.
2. Provide updated bank statements and ID.
3. Complete the appraisal and underwriting process.

Because documentation is lighter than traditional mortgages, bank statement loans often close in 21–30 days—sometimes faster than conventional loans.

Step 8: Close and Move In

At closing, bring your down payment and closing costs, sign the paperwork, and get your keys.

Congratulations—you’ve bought your home using your real income, not your tax returns.

Pros and Cons of Bank Statement Loans

Pros:

• No tax returns or W-2s required
• Flexible qualification for self-employed borrowers
• Can finance primary homes
• Faster underwriting process

Cons:

• Higher interest rates than conventional loans
• Larger down payments (10–20% minimum)
• Limited lender availability

FAQs About Bank Statement Loans for Primary Homes

Ready to Qualify Without the Paperwork Headaches?

If you’re self-employed and tired of explaining your tax returns, a bank statement loan could be your fastest path to homeownership.

Submit your scenario now and get matched with a lender who understands self-employed borrowers.

Read Next

• Bank Statement Loans 101: How They Work
• Bank Statement vs. DSCR Loans: What’s Best for You?
• Self-Employed Mortgage Guide for Investors

Take the stress out of home buying.
Let your bank statements do the talking—and own your dream home, your way.

Get started now with a no-obligation lender match.