Short answer: A bank statement loan uses 12 or 24 months of your personal or business bank statements to figure your income, instead of tax returns. It fits self-employed borrowers whose tax returns show less income after write-offs. You can use it for a primary home, a second home or an investment property in Florida, Georgia, Michigan, North Carolina, Tennessee or Texas. The lender still verifies your income and your ability to repay, and credit, an appraisal and reserves still apply.
How lenders figure your income
The underwriter adds up the deposits on your statements and takes out transfers between your own accounts, loan proceeds, refunds and other money that isn't income. Then:
• Business account: the lender applies an expense factor, a set percentage of deposits treated as business costs. Some programs accept a lower factor backed by a letter from your CPA or tax preparer.
• Personal account: many programs count the qualifying deposits in full, since your business already paid its costs before the money reached you.
The total divided by 12 or 24 months is your monthly qualifying income. Try it in the bank statement calculator.
Who a bank statement loan fits
• Business owners and self-employed borrowers with at least two years in business
• Real estate agents, contractors, consultants and other professionals who write off expenses
• Borrowers whose deposits show steady income their tax returns don't
Documents for a bank statement loan
✓ 12 or 24 months of bank statements, every page
✓ Proof of two years in business: a business license, CPA letter or state registration
✓ CPA or tax preparer expense letter, if you're using your own expense factor
✓ Photo ID and permission to pull your credit
✓ Statements for the accounts holding your down payment and reserves
✓ Purchase contract, or your current mortgage statement for a refinance
What still counts
• Credit: each program sets a minimum score.
• Down payment and reserves: many programs ask for more than a conventional loan.
• Large deposits: expect to explain any deposit that doesn't match your usual pattern.
• Ability to repay: for a home you live in, the lender confirms the payment fits your verified income.
Bank statement loans in Florida and Georgia
The program rules match in both states. In Florida, condo approval and wind and flood insurance come up often and can change your housing payment. In Georgia, an attorney conducts your closing and you sign a security deed. FLO Mortgage arranges bank statement loans through investor programs from our Flagler Beach office, by phone or online.
Compare every program on our non-QM loans page, including 1099 loans and profit and loss statement loans.
Bank statement loans: common questions
Should I use 12 or 24 months of bank statements?
Use the period that shows your income best. If your business grew in the last year, 12 months may qualify you for more. If last year dipped, 24 months can even it out. Some programs offer better terms with 24 months.
Can I use personal bank statements instead of business statements?
Yes. Many programs accept personal statements and count the qualifying deposits in full. Business statements usually get an expense factor applied.
Does a bank statement loan verify my income?
Yes. It replaces tax returns, not verification. The lender figures your income from your deposits and confirms you can repay the loan.
Can I buy my primary home with a bank statement loan?
Yes. Bank statement loans can finance a primary home, a second home or an investment property.
What is an expense factor?
It's the share of your business deposits the lender treats as business costs. The program sets a standard figure, and some accept a lower one backed by your CPA or tax preparer.
Self-employed and ready to buy or refinance?
A licensed loan officer can review your statements and tell you which program fits. Prefer to talk? Call (386) 882-9980.
This page is general education, not a commitment to lend or an offer of specific terms. Bank statement loans are non-QM loans offered through investor programs. They are not government-backed and are not qualified mortgages, and their terms and costs differ from conventional loans. Available on properties in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. All loans are subject to credit approval, income and asset verification, appraisal, underwriting guidelines, property eligibility and program availability. Not all applicants will qualify. Requirements vary by investor program and may change. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures.