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Non-QM lending for the self-employedQualify on the income you actually earn, not what your tax return shows
If you are self-employed, own a business, or run on 1099 income, write-offs that lower your taxes can also sink a traditional mortgage. A bank statement loan reads your deposits instead. We shop lenders to fit your numbers.
Bank statement loans are a non-QM option that lets self-employed borrowers and business owners qualify using 12 or 24 months of bank deposits instead of tax returns. As a brokerage, North Bay Capital matches your cash flow to the right lender, typically with 10 to 20 percent down.
Programs we broker
The options under bank statement loans — and the right fit for each.
12-Month Personal Bank Statement Loan
Twelve months of personal deposits, no tax returns, faster turn time.
A 12-month personal bank statement loan uses the last year of your personal checking or savings deposits to calculate qualifying income. The lender averages the qualifying deposits across those twelve statements, and that monthly figure becomes the income on file. No W-2s, no tax returns, no profit-and-loss puzzle.
I usually steer borrowers here when the most recent year is the strongest year, or when getting under contract quickly matters more than squeezing out the last dollar of income. Twelve months is faster to pull together and easier to clean up if a deposit needs explaining.
- Self-employed borrowers whose latest year is the strongest
- 1099 earners paid into a personal account
- Owners who need to close quickly
24-Month Personal Bank Statement Loan
Two full years of personal deposits, smoother averaging, often better pricing.
The 24-month version reads two full years of your personal bank statements. Spreading the average over twenty-four months evens out seasonal swings and slow stretches, which can produce a more durable income figure and, with most lenders, a slightly better rate or higher loan-to-value than the 12-month track.
If your business runs hot and cold across the year, or if a single rough month would skew a 12-month average, the 24-month read usually tells a fairer story. We pull both calculations before deciding which one to submit.
- Seasonal or cyclical self-employed income
- Borrowers who want the strongest possible average
- Two years of steady personal deposits
12-Month Business Bank Statement Loan
One year of business deposits, expense factor applied, no tax returns.
A 12-month business bank statement loan reviews twelve months of your business account deposits, then applies an expense factor to reflect the cost of running the company. A 50% factor is a common starting point, meaning roughly half of deposits count as income, though the factor can move lower with a CPA letter or a profit-and-loss statement that documents your actual margins.
This is the right path when revenue flows through a dedicated business account and the most recent year reflects how the business runs today. A targeted CPA letter at submission can meaningfully raise qualifying income.
- S-corp and LLC owners with a clear business account
- Recently improved or restructured businesses
- Owners who want to close on the latest twelve months
24-Month Business Bank Statement Loan
Two years of business deposits for the steadiest qualifying income.
The 24-month business bank statement loan averages your business deposits across two full years. For established companies, the longer window almost always produces a cleaner, more defensible income figure, and many lenders reward it with better pricing than the 12-month version.
If your CPA can document a true expense ratio below the lender's default factor, this is where it pays off most. Two years of statements plus a signed CPA letter or P&L often unlocks the highest qualifying income of any bank statement program we run.
- Established business owners with consistent deposits
- Owners with a CPA who can document real margins
- Borrowers chasing the highest qualifying income
Bank Statement Jumbo Loan
For loan amounts above conforming, qualified on deposits.
California prices push plenty of self-employed buyers into jumbo territory, and a bank statement jumbo handles that. The same 12 or 24 months of personal or business statements drive qualifying income, but the loan amount lives above the local conforming limit and the file is underwritten to jumbo guidelines.
Expect tighter credit and reserve requirements than a standard bank statement loan. We compare jumbo bank statement programs across multiple non-QM lenders, because pricing on these can swing noticeably from one investor to the next.
- Self-employed buyers in higher-cost California markets
- Business owners refinancing a jumbo balance
- High earners whose returns understate cash flow
Bank Statement Loan for Investment Property
Use deposits to qualify on a 1-4 unit rental.
When the property is a rental rather than your home, most non-QM lenders will still let you qualify on bank statements. The income method is the same — 12 or 24 months of personal or business deposits — but the down payment, rate, and reserve requirements step up because the file is priced as investment.
Before we lock this in, we almost always run a DSCR quote alongside it. If the rent covers the payment cleanly, DSCR can be cheaper and easier. If it doesn't, a bank statement investor loan keeps the deal alive.
- Self-employed investors buying a rental
- BRRRR refinances where DSCR doesn't pencil
- Owners adding to a small portfolio without using tax returns
Calculators for this loan
What people ask before they apply
What is a bank statement loan and who is it for?
A bank statement loan is a non-QM mortgage that qualifies you using deposits into your bank account rather than tax returns, pay stubs, or W-2s. It is designed for self-employed borrowers, business owners, and 1099 earners whose tax returns understate their true cash flow because of legitimate write-offs. The lender averages your qualifying deposits over 12 or 24 months to set the income used for approval.
How is my income calculated on a bank statement loan?
The lender adds up the qualifying deposits across the statement period and averages them into a monthly figure. On personal statements, most deposits are usually counted. On business statements, an expense factor, often around 50 percent, is applied to reflect the cost of running the business, so roughly half of deposits may count as income. A CPA letter or profit-and-loss statement can sometimes lower that factor and raise your qualifying income.
How much do I need for a down payment?
Most bank statement programs start around 10 percent down and commonly land in the 10 to 20 percent range. The exact figure depends on your credit score, the loan amount, and whether the property is a primary residence, second home, or investment. Stronger credit and lower loan amounts tend to unlock the smaller down payments. We can show you the trade-offs for your specific scenario.
What credit score do I need for a bank statement loan?
Many lenders consider scores starting around 620, though some set their floor at 640. A higher score generally improves your loan-to-value, rate, and terms. Because North Bay Capital is a brokerage, we can match your score to the lender whose guidelines treat it most favorably rather than sending you to a single lender's one-size answer.
Can I use a bank statement loan for an investment property or second home?
Yes. Bank statement programs are commonly available for primary residences, second homes, and investment properties. Down payment and rate requirements usually step up as you move from a primary residence toward an investment property. If the property is a rental, we can also compare a bank statement loan against a DSCR loan, which qualifies on the property's own cash flow.
Why would I use a bank statement loan instead of a conventional mortgage?
Conventional loans qualify you on the net income reported on your tax returns. If you take large deductions, that net figure can be far lower than the money you actually bring in, which shrinks how much home you qualify for or disqualifies you entirely. A bank statement loan reads your deposits instead, so your real cash flow drives the approval. The trade-off is typically a slightly higher rate and a larger down payment than a conventional loan.
How many months of bank statements do I need?
Most programs use either 12 or 24 months of statements. A 24-month review can smooth out seasonal swings and sometimes improves terms, while a 12-month option can be faster and helps if your most recent year is stronger. Lenders generally want to see about two years of self-employment history alongside the statements.
Are bank statement loans legitimate and regulated?
Yes. Bank statement loans are real mortgages and are not the unverified stated-income loans of the past. They still fall under the federal Ability-to-Repay rule, which requires the lender to document and verify that you can afford the loan. The difference is the income is verified through your actual deposits rather than tax returns. North Bay Capital works only with licensed, established non-QM lenders.
Jesse Gonzalez, President & Founder
NMLS #278103 · CA DRE #01855372 · Last reviewed June 24, 2026
Let's see what your deposits really qualify you for
Before you assume your tax returns rule you out, let us look at the numbers. Call Jesse Gonzalez at North Bay Capital at 707-595-5393 or email jesse@northbaycap.com. We will review your statements, tell you straight whether a bank statement loan fits, and shop the program across multiple lenders to find the one that rewards your cash flow.