Bank Statement Loans
- Home
- <
- Bank Statement Loans
Bank Statement Loans
Unlock Home Financing Using Your Bank Statements No Tax Returns Needed
If you’re self-employed, a freelancer, gig worker, or have non-traditional income that doesn’t show up cleanly on tax returns, a bank statement loan can help you qualify for home financing by using your bank deposit history instead of W-2s or pay stubs. At Lowcostmortgage, we specialize in helping clients with alternative income prove their ability to repay a loan, with clarity and fairness.
What Is a Bank Statement Loan?
A bank statement loan is a type of mortgage that uses your personal or business bank statements (typically 12 to 24 months) to assess your income and cash flow, rather than relying on traditional income documentation like tax returns, W-2s, or pay stubs.
These loans fall under the category of non-qualified mortgages (non-QM), because they diverge from the standard underwriting rules used for conventional loans.
They are ideal for borrowers whose tax returns may not reflect their true earning power (due to write-offs, deductions, or variable income), but who can demonstrate consistent cash flow via bank deposits.
How the Bank Statement Loan Process Works with Lowcostmortgage
Initial Consultation & Assessment
We’ll review your banking history, projected income, credit, and goals to see if a bank statement loan is viable.
Document Collection & Bank Statements
You provide 12–24 months of personal and/or business bank statements, plus supporting documentation.o
Underwriting & Deposit Analysis
Underwriters analyze your deposit history, consistency, allowable income conversion, and risk metrics.
Offer & Terms Presentation
We present you with loan options including interest rates, down payment, amortization, and fees.
Approval & Closing
Once accepted, you sign documents, and your mortgage is closed much like a conventional loan.
Loan Servicing & Repayment
You make monthly mortgage payments; at term or on sale, standard repayment applies.
Why Partner with Lowcostmortgage for Your Bank Statement Loan?
At Lowcostmortgage, we specialize in navigating alternative loan paths. Here’s what sets us apart:
Deep expertise in non-QM and alternative income loans
Transparent disclosures and fee structures
Personalized underwriting support and advocacy
Access to lenders who offer bank statement programs
Project guidance from start to finish — from consultation to closing
Ready to see if a bank statement loan is the right path for you?
Who Can Benefit from a Bank Statement Loan?
Bank statement loans are especially suited for:
Self-employed professionals, small business owners, freelancers.
Gig workers, independent contractors, or those paid via 1099 or other nontraditional means.
Individuals whose tax returns understate their income due to business deductions or fluctuations.
Borrowers who have solid banking history (regular deposits, stable balances) but lack standard proof of income
Watch How We Make Homeownership Simple & Stress-Free
From securing the right mortgage to finding the best loan options, we’re here to guide you every step of the way. Our short video explains how we help first-time buyers, families, and investors achieve their financial goals with competitive rates, flexible terms, and personalized support.
Key Features, Benefits & Tradeoffs
Benefits
Alternative Documentation – Qualify using your bank statements instead of tax returns and pay stubs.
Reflect Real Earnings – Useful if your tax returns don’t capture your full income due to write-offs or deductions.
Access When Traditional Loans Don’t Work – Helps borrowers who otherwise might be rejected by conventional underwriting.
Risks
Higher Interest Rates & Fees – Because of the higher risk to lenders, these loans often carry higher borrowing costs.
Larger Down Payments – Some bank statement lenders require bigger down payments compared to traditional mortgages.
Stricter Underwriting on Banking Behavior – Lenders will closely examine deposit patterns, overdrafts, irregular transfers, and monthly consistency.
Limited Lender Availability – Not every lender offers bank statement programs, as they require specialized underwriting.
Non-QM Constraints – Because they are non-qualified mortgages, they may lack some protections or standardization found in conventional loan products.
FAQ
Ans: Lenders may accept either or both depending on where your income flows. Business statements may be discounted via an expense ratio.
Ans: It varies by lender, but many require at least 620, sometimes higher.
Ans: Similar to conventional mortgages — about 30–45 days — depending on documentation readiness and underwriting complexity.
Ans: Yes — many programs allow cash-out refinances or switching your existing loan to bank statement underwriting
