Bank Statement Loans & How They Work

Traditionally, employees worked from 9-5 for the same employer until retirement. Today, we have almost endless opportunities available—consulting, podcasting, starting a business, live streaming video games, delivering food or people to new locations —and we can pivot to a new role anytime.

However, getting a mortgage can be challenging when you’re self-employed because your tax returns may not reflect your actual income or earning capability. A bank statements loan may be the solution you need to purchase a new home or refinance an existing mortgage.

What is a bank statement loan?

Most mortgages require you to submit tax returns, pay stubs, or W-2s to verify your income. With a bank statement loan, you’ll provide just 12 months of personal or business bank statements instead.

A bank statement loan can be perfect for:

• Entrepreneurs
• Business owners
• Independent contractors
• Freelancers
• Real estate agents

Is a bank statements loan right for you?

Many self-employed borrowers can still qualify for other types of mortgages. But if there is more to your income than standard documents show, a bank statements loan could save you time and hassle.

Bottom line: If you are like many self-employed workers who take full advantage of business deductions to reduce your tax obligations, this convenient mortgage solution could be the right fit for you.

Being self-employed doesn't mean you can't get home financing. Contact a loan advisor to see how you can qualify for a bank statements loan from Flagstar.