Self employed borrowers, as well as those who earn seasonal income, are eligible for some excellent mortgage programs.  This includes mortgage products that do not require you to submit any tax returns, but instead allow you to use your bank statements to verify income.

As of 2018, there are now numerous mortgage lenders that are offering these bank statement programs.  You can view some of the best lenders below, as well as some general information on how to qualify.

Bank Statement Programs – How to Qualify for a Bank Statement Loan

Below are some of the standard requirements that you should expect from any bank statement program lender.  The exact qualification requirements will vary from one lender to the next.  If you would like some help determining which bank statement lender is likely to offer you the best loan, contact us.

Bank Statements –  You will generally need to submit either 12 or 24 months worth of bank statements.  Depending on the lender, you may be able to use both your personal and business bank statements together as qualifying income.  Most lenders will then take the average of the total income over all 12 or 24 months.

Down Payment – The maximum LTV allowed is usually 90%, which means a minimum down payment of 10%.  If you have a lower credit score (especially under 580), you should expect to need to put closer to 20% down.

Credit Score –  The credit score requirements vary from lender to another, but it seems that most want at least a 580 FICO score.  However, there as non-prime lenders that offer bank statement programs to borrowers with a credit score as low as 500.  Keep in mind, the lower your credit score, the higher the down payment required will be.

DTI Ratio – Bank statement mortgages allow higher than usual debt-to-income ratios, with nearly each lender allowing a maximum ratio of 50%.

Loan Amount – The maximum loan size varies from one lender to the next.  Some are capped at $2,000,000, while others will loan all the way up to $5,000,000.

P&L Statement –  Some lenders will require a P&L statement (profit and loss statement) that is prepared by a CPA.  Not all lenders will require a P&L though.  Keep in mind, that when there is no P&L required, often only personal bank statements are eligible to be used.

These are the basic guidelines required by most lenders offering this type of program.  If you are approved for a bank statement loan, you will receive a loan approval with the exact requirements that must be satisfied in order for your loan to close.

Click here to find out if you qualify for a bank statement loan

Top 5 Bank Statement Mortgage Lenders

The lenders featured below offer what we consider to be the best bank statement programs.  Depending on your location, we can help match you with the best lender offering this program in your state.  If you would like to be contacted by a lender, simply fill out this form.

1 – Citadel Servicing

Citadel offers 12 and 24 month bank statement programs, as well as a one month bank statement program (meaning you may be able to qualify for a mortgage using only 1 month of bank statements!).  They allow you to use both your personal and business bank statements.

Details of Citadel’s Bank Statement Program:

  • Loan amounts are available up to $5,000,000.
  • The minimum credit score is 500.
  • The highest LTV allowed is 90%.
  • The maximum DTI ratio is 50.49%.
  • Available for both owners occupied and investment properties.
  • They offer these loans in the following states:  AL, AR, AZ, CA, CO, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MT, NC, NE, NH, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, and WY.

Click here to learn more about Citadel Servicing’s bank statement program

2 – Angel Oak Mortgage Services

Angel Oak offers a 12 month bank statement program, and allows both personal and business bank statements to be used.

Details of Angel Oak’s Bank Statement Program:

  • Loan amounts are available up to $3,000,000.
  • Credit scores as low as 600 are accepted.
  • Up to a 90% LTV with no MI.
  • DTI ratios up to 50%.
  • Available for owner occupied and investment properties.
  • They offer these loans in the following states:  AL, AZ, CA, CO, CT, DE, DC, FL, GA, IL, IN, IA, KS, KY, LA, MD, MI, MN, MS, NJ, NV, NC, OK, OH, OR, PA, SC, TN, TX, UT, VA, WA and WI.

Click here to learn more about Angel Oak’s bank statement program

3 – Cross Country Mortgage

Cross Country Mortgage offers a 24 month bank statement (only personal bank statements may be used).

Details of Cross Country’s Bank Statement Program:

  • Loan amounts are available up to $2,000,000.
  • They do not have a set minimum credit score, but require good or excellent credit.
  • The highest LTV allowed is 80%.
  • DTI ratios up to 50%.
  • Available for owner occupied, investment properties, and second homes.
  • They offer these loans in the following states:  AL, AK, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, ID, IA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, and WY.

Click here to learn more about Cross Country’s bank statement program

4 – Northstar Funding

Northstar Funding offers 12 and 24 month bank statement programs.  You may use both your personal and business bank statements.

Details of Northstar’s Bank Statement Program:

  • Loan amounts are available up to $5,000,000.
  • The minimum credit score required is 680.
  • The highest LTV allowed is 90%.
  • DTI ratios up to 50%.
  • Available for owner occupied and investment properties.
  • They offer these loans in the following states:  CA, CO, CT, DC, FL, GA, IL, MD, NC, NJ, NY, PA, OR, RI, and SC.

Click here to learn more about Northstar Funding’s bank statement program

5 – First National Bank of America 

First National Bank of America offers a 12 month bank statement program.  You may use both your personal and business bank statements.

Details of First National’s Bank Statement Program:

  • The maximum loan amount allowed is (and there is no minimum loan amount).
  • They do not specify a minimum credit score requirement.
  • The highest LTV allowed is 85%.
  • They do not specify a minimum credit score requirement.
  • The maximum DTI ratio allowed is 55%.
  • They offer these loans in the following states:  AL, AR, AZ, CA, CO, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MN, MT, NC, NE, NH, NJ, NV, OK, OR, PA, SC, TN, TX, UT, VA, VT, WA, WI, and WY.

Click here to learn more about First National’s bank statement program

Additional Bank Statement Mortgage Lenders

The above 5 mortgage lenders are likely to offer you the best bank statement loan.  If you are unable to get approved with one of these lenders, you may also consider the following bank statement loan lenders:

Mortgage Depot

Griffin Funding

HomeLife Mortgage

RK Mortgage Group

ACC Mortgage

We can help you determine which lender is likely to offer you the best bank statement loan based on your location and unique situation.  Would you like some help finding the right bank statement lender for your mortgage?

Click here to get matched with a bank statement mortgage lender

Frequently Asked Questions

Are there options to refinance with a bank statement program?
Yes, you there are options to refinance your mortgage with a bank statement program. This includes rate and term refinancing (to lower your rate and payment), as well as cash out refinancing.

What types of properties can be bought using this program?
Between all the lenders that offer this program type, nearly all home types are eligible.  This includes primary residences, second homes, investment properties, condominiums, and vacation homes.

What other documents and loan conditions are usually required to obtain the loan?
You should expect to also be required to at least submit a business license and appraisal.

Is it possible to have a W-2 co-borrower?
Yes, you can have a co-borrower who uses their W-2 tax returns and income. They will be verified in a traditional manner, along with your income that is verified through bank statements.

How long does the process usually take to close the loan once approved?
If you move quickly providing everything that is required of you, a 30 day closing time is realistic. However, many loans will take 45 days (and in rare cases even longer) to close due to various reasons.

Do you accept income received through credit card clearing houses?
Yes, income that is received through a credit card clearing house, such as PayPal, AMEX, or Square may be used. All income sources are received on a case by case basis, but as long as the income you receive makes sense for your type of business, you may be able to use income from sources such as PayPal.

I only receive income part of the year (seasonal income), how might I qualify?
If you only receive income for part of the year, you may still qualify for a bank statement loan program. Your total income will be averaged out for either 12 or 24 months, so as long as the monthly average meets the necessary income requirements for your loan, you may qualify.

Can you use retirement income for these programs?
Any retirement income that is deposited into your bank account can be used as qualifying income.

Will having any NSF (non sufficient funds) or overdrafts on my bank account affect my chances of qualifying?
Some lenders will only allow you to have up to 3 total NSF / overdrafts on your account in a 12 month period. You may receive an exception, but it will ultimately be up to the underwriter to decide.