Bank statement loans for self-employed investors.
Your tax return shows what is left after the write-offs. Your bank account shows what the business actually brings in. A bank statement loan verifies your income from 12 or 24 months of deposits instead of tax returns, for investment property you will not live in.
How your income is counted.
Send the statements
12 or 24 consecutive months of personal or business bank statements, every page.
Deposits are averaged
Regular income is averaged by month. Transfers between your own accounts, refunds, loan proceeds and one-off deposits are left out.
Business costs come off
Business deposits are reduced by an expense factor for the cost of running the business. A letter from your CPA or tax preparer can show a lower one.
Large deposits explained
A deposit far above the usual is documented — an invoice, a contract — or left out.
Income meets the property
That monthly income, your credit and the property set the loan.
From deposits to income, step by step.
The expense factor depends on the business and how it is documented: a CPA or tax-preparer letter showing lower expenses raises the income counted, and personal statements are usually counted closer to the full deposit. Example figures, not a quote.
Bank statement, DSCR or full documentation?
| Term | Bank statementYour deposits | DSCRThe property’s rent | Full documentationTax returns |
|---|---|---|---|
| Qualifies onWhat the lender reads to decide. | Your deposits, after an expense factor | The rent against the payment | Tax returns and W-2s |
| Your personal incomeWhether it is part of the decision. | Verified from deposits | Not used | Verified from tax returns |
| Your other debtsDebt-to-income. | Usually reviewed | Not reviewed | Reviewed |
| Best whenThe situation each fits. | Write-offs shrink your taxable income | The rent covers the payment | Your income documents cleanly |
| PropertyAll three, on this site. | Non-owner-occupied investment property | ||
When the rent already covers the payment, a DSCR loan leaves your income out of it entirely.
The best of the best. Closed in under two weeks, with no hidden fees.
Bank statement loan questions
What is a bank statement loan?
A loan that verifies your income from 12 or 24 months of bank deposits instead of tax returns. It is built for borrowers whose returns understate what they earn because of business write-offs.
Who is a bank statement loan for?
Self-employed borrowers, business owners, freelancers and 1099 contractors. Lenders usually look for about two years of self-employment.
How many months of statements do I need?
Usually 12 or 24 consecutive months, personal or business, every page.
How is my income calculated?
Eligible deposits are averaged by month. On business statements an expense factor is taken off for the cost of running the business — often about half, less with a CPA or tax-preparer letter showing lower expenses. Transfers between your own accounts, refunds, loan proceeds and one-off deposits are not counted.
Do I need tax returns?
Not for your income. A CPA or tax-preparer letter, a business license or a profit and loss statement may be asked for to confirm the business.
Is my income verified?
Yes — from your deposits. A bank statement loan is not a no-documentation loan; it uses different documents.
Can I use a bank statement loan for my own home?
Not here. Our loans are for non-owner-occupied investment property only — business-purpose loans.
Bank statement loan or DSCR loan?
It depends whose cash flow is stronger. If the property’s rent covers its payment, a DSCR loan qualifies on the rent and leaves your income out. If the rent does not cover it yet, or you are buying where rents are thin, your own deposits can carry the loan.
Are bank statement loan rates higher?
Typically higher than a full-documentation loan, because the income is documented differently. Yours is priced to your credit, your deposits, the leverage and the property.
Self-employed? Send us the property and your statements.
We’ll tell you which documentation path fits — bank statements, the property’s rent, or full documents — and what it prices at.
*For business-purpose loans on non-owner-occupied investment property only. Not available for personal, family or household purposes. All loans subject to credit approval, underwriting and property eligibility. Rates, leverage and terms are indicative, change without notice, and not all borrowers will qualify; not a commitment to lend. YS Capital Group · NMLS ID 2609746 · Equal Housing Lender.