Bank Statement Loans · Self-Employed

Your tax return says one thing.
Your deposits tell the truth.

If you're self-employed, your CPA's job is to make your taxable income look small. That same paperwork makes a normal mortgage nearly impossible — even when your business clearly supports the payment. A bank statement loan fixes that: you qualify on 12 or 24 months of real deposits, not tax returns. Beto has the non-QM lenders who underwrite the way you actually earn.

No tax returns
12 or 24 months
Credit from 620
10% down options
12 / 24
Months of Statements
None
Tax Returns Needed
620+
Typical Credit
10%
Down Payment Options
The catch-22 every business owner hits

"I write off too much to ever get approved."

It's the most frustrating part of being self-employed: the smarter your tax strategy, the worse you look to a conventional underwriter. Bank statement loans exist precisely to break that loop.

The Myth

"My tax returns show almost no income, so no bank will give me a mortgage."

You did everything right — deducted legitimately, lowered your tax bill — and a conventional lender reads that low net income as "can't afford it," even though your accounts are healthy.

The Reality

A bank statement loan underwrites your deposits, not your deductions.

Instead of Schedule C, the lender looks at what actually flows into your accounts. Your real cash flow — the money you and I both know you make — becomes your qualifying income. No tax returns, no 4506-C, no write-off penalty.

From deposits to a "yes"

How your income actually gets calculated.

No mystery to it. The lender turns your deposit history into a qualifying monthly income in four steps — and the "expense factor" is the part worth understanding.

1

Total your deposits

Add up the eligible deposits across 12 or 24 months of statements.

2

Strip out the noise

Remove transfers between your accounts, loan proceeds, and one-time windfalls — only real income counts.

3

Apply the expense factor

For business accounts, a percentage is set aside for operating costs. Personal accounts usually count in full.

4

Average per month

Divide by the number of months. That figure is your qualifying income for the loan.

The lever that matters most

The expense factor, three ways

~100%
Personal statements

Money in your personal account is generally what you've already drawn after business costs — so lenders typically count all of it as income. Great for sole proprietors and single-member LLCs.

~50%
Business statements (standard)

Business accounts include money you'll spend running the business, so the industry-standard expense factor is 50% — half of every dollar counts as income, no extra paperwork needed.

as low as 10%
Business + CPA letter

Run a low-overhead business? A CPA or tax preparer letter stating your real expense ratio can drop the factor well below 50% — sometimes to 10–25% — counting far more of your deposits.

Why the expense factor is worth a phone call

Say you need $8,000/month of qualifying income to get the loan you want:
At a 50% business expense factor, you'd need…$16,000/mo in deposits
With a CPA letter at 25%, you'd only need…$10,667/mo in deposits

Same business, same deposits — but the right documentation nearly cuts the deposits you need in half. This is exactly where a broker who knows the programs earns their keep: matching your business type and paperwork to the lender with the most favorable expense treatment.

Pick your statement window

12 months or 24 months?

Both qualify you on deposits — the difference is how much history you show, and what it unlocks. The right one depends on your business and your numbers.

12 months

Recent & strong
Only one year of statements to gather.
Best when your recent income is up — a strong last 12 months counts fully.
Works for a newer business (some lenders accept ~1 year self-employed).
Often wants slightly higher credit (680+) and a bit more down.
Best for: a business that's grown recently or is newer.

24 months

Stable & proven
Two years of statements shows longer consistency.
Often unlocks better rates and higher loan-to-value.
May accept lower credit (620–640) and smaller down payments.
Smooths out a seasonal or lumpy income year.
Best for: steady, established cash flow — usually the cheaper option.

Not sure which paints the better picture? Beto can run your numbers both ways and use whichever qualifies you for more, at the better rate.

More flexibility than you'd expect

Built around how you really work.

Bank statement programs aren't a single rigid product — they bend to fit your accounts, your property goals, and your cash flow.

1

Personal, business, or both

Use whichever tells your story best — personal statements, business statements, or a combination. Married to a W-2 earner? Blending incomes can unlock a better rate than going solo.

Mix and match accounts
2

Any property, even jumbo

Primary home, second home, or investment property — bank statement programs cover them all, with jumbo bank statement options into the millions for higher-priced homes.

Primary · 2nd · investment
3

Interest-only available

Many programs offer an interest-only option to keep early payments low — handy for business owners managing cash flow or investors maximizing returns.

Cash-flow friendly
What to expect

The general bar to qualify.

These are non-QM loans, so guidelines flex by lender — but here's the typical shape. Strong numbers in one area can offset a softer spot in another.

620+
Credit Score
Several lenders dropped to 620 in 2026; 680+ for jumbo, higher scores earn better rates.
10–20%
Down Payment
10% is possible with a strong profile; 15–20% is the common range.
2 yrs
Self-Employed
Two years is standard; some lenders accept ~1 year with compensating factors.
3–12 mo
Cash Reserves
A post-closing cushion; larger loans ask for more. DTI generally up to ~50%.

Rates typically run modestly above conventional — often just 0.5–0.75% higher for strong borrowers. For income that doesn't fit a W-2 box, that small premium is what makes the home possible at all.

Who bank statement loans fit

If your income doesn't fit a W-2 box.

Built for the people who run San Antonio's small businesses, job sites, and side hustles — anyone whose deposits look a lot healthier than their tax return.

Business owners & the self-employed

You take every legitimate deduction your CPA recommends — and pay the price at mortgage time. This loan reads your deposits instead.

1099 contractors & freelancers

Paid by the project or the gig, with income that swings month to month. Averaging 12–24 months of deposits smooths it into qualifying income.

Real estate investors

Growing a portfolio and want financing based on your actual cash flow, with interest-only options to maximize returns? This fits.

Commission & cash-flow earners

Realtors, sales pros, restaurant and trade owners — strong, real income that traditional underwriting struggles to see on a tax return.

Alberto Moravia, Beto the Broker
NMLS #1956260 · Verified

Alberto Moravia — known as Beto the Broker — is a licensed mortgage broker, TREC Certified Instructor, and proud San Antonio, TX resident who works with business owners every day and knows how badly conventional underwriting treats them.

As an independent broker at Edge Home Finance LLC, Alberto shops across 100+ wholesale and non-QM lenders — the ones with real bank statement, expense-factor, and CPA-letter programs — to turn your deposits into the best possible approval. Straight answers, and he speaks English, Spanish, and Portuguese.

✓ NMLS #1956260 ✓ TREC Certified Instructor ✓ 100+ Lenders ✓ Bank Statement · Non-QM ✓ EN · ES · PT
Real questions, straight answers

What buyers ask about bank statement loans.

What exactly is an "expense factor"? +
It's the share of your business deposits the lender sets aside for operating costs before counting the rest as income. The industry standard is 50% — so half of every dollar counts. With a CPA or tax-preparer letter documenting your actual (lower) expenses, that factor can drop substantially — sometimes to 10–25% — which counts far more of your deposits. Personal account deposits are usually counted at or near 100%, since that money is already what you drew after expenses.
Should I use 12 or 24 months of statements? +
Use 12 months if your recent income is strong or your business is newer — there's less to gather and a great last year counts fully. Use 24 months if your income is steady or seasonal; the longer history often earns better rates and higher loan-to-value, and may accept lower credit. The honest move is to calculate both and use whichever qualifies you for more — which Beto will do.
Do I really not need tax returns? +
Correct — no tax returns, no W-2s, no 4506-C transcript request. The lender qualifies you on your bank deposits alone (plus the usual credit, asset, and property review). That's the entire point: your write-offs no longer work against you.
Are the rates much higher than a normal loan? +
Somewhat higher, but less than people expect. For a strong borrower (good credit, solid down payment), bank statement rates often run only about 0.5–0.75% above conventional. For income that can't qualify any other way, that modest premium is what makes the purchase possible — and you can often refinance later if your documented income improves.
Can I use this for an investment property? +
Yes. Bank statement programs cover primary residences, second homes, and investment properties, and many offer interest-only options that investors like. (For pure rental qualifying, a DSCR loan may be even simpler — Beto will tell you which fits better.)
My spouse has a W-2 job — does that help? +
Often, yes. Many lenders will blend your bank-statement income with a co-borrower's W-2 income. The steady W-2 lowers the lender's risk, which can mean a better rate than a solo self-employed application and a higher combined loan amount.
What does it cost to talk to Beto? +
Nothing. It's a free 10-minute call — send a rough picture of your deposits and he'll estimate your qualifying income, compare 12- vs 24-month and personal vs business, and tell you the smartest path. No pressure, no obligation.

Turn your deposits into an approval.

A free 10-minute call with Beto. Give him a rough sense of your monthly deposits and he'll estimate your qualifying income, find the program with the best expense treatment, and map out the fastest path to closing — no tax returns required.

Book My Free Call (808) 551-8045
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