Bank statement loan
A non-QM mortgage that qualifies borrowers on 12–24 months of bank deposits instead of tax returns. An expense factor (typically 40–60%) is applied to average monthly deposits to estimate qualifying income. Designed for self-employed borrowers whose tax-return net income is reduced by legitimate business deductions.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Conventional loan — A mortgage that conforms to Fannie Mae and Freddie Mac guidelines. Not government-insured. Lowest rates for bo…
- FHA loan — A mortgage insured by the Federal Housing Administration. Allows lower down payments (3.5% with 580+ credit),…
- VA loan — A mortgage guaranteed by the Department of Veterans Affairs, available to eligible service members, veterans,…
- USDA loan — A mortgage backed by the U.S. Department of Agriculture for homes in eligible rural areas. Zero down payment,…
- Non-QM loan — Any mortgage that doesn’t meet the CFPB’s Qualified Mortgage definition — usually because it uses alternative…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.