Bank statement and Non-QM

Your tax return is written to minimise tax, not to buy a house.

Bank statement loans qualify a self employed borrower on deposits rather than on net income after every legitimate write-off has been taken.

See if I qualifyTalk to Diego
12 or 24 monthsOf business or personal statements
No tax returnsOn most bank statement programs
Real ratesHigher than conforming, and worth it

Bank statement and Non-QM

The problem this solves

A business owner who earns well and writes off aggressively can show a net income that makes them look, on paper, like they cannot afford a house they could buy outright. Conventional underwriting reads the bottom line of the return and stops there.

A bank statement program looks at money actually coming into the account over twelve or twenty four months, applies an expense factor, and qualifies on that. It is not a loophole. It is a different, and for this borrower a more accurate, way of measuring income.

  • Self employed for at least two years
  • 1099 contractors and commission-only earners
  • Business owners with heavy legitimate write-offs
  • Investors qualifying on the property rental income
  • Borrowers between conventional and hard money

What is assessed

What a lender is actually looking at.

None of this is a secret, and knowing it early is the difference between a smooth file and a scramble two weeks before closing.

StatementsUsually 12 or 24 months of business or personal bank statements. Consistency matters more than any single big month.
Expense factorA percentage of deposits is treated as business expense, either a fixed figure or one supported by a letter from your accountant.
Down paymentGenerally 10% to 20%. More down improves both the rate and the odds.
PricingRates sit above conforming, because the loan is not sold to an agency. Often the right move is to buy now on this and refinance later.

Three minutes

Find out where you stand on this program.

The qualifier asks five questions and comes back with the programs you fit and an estimated monthly payment. It does not run a credit check to do it.

  • No credit check to get an answer
  • An estimated payment before anyone calls you
  • Routed to a named loan officer, not a queue

See what you qualify for

Free

Questions

The ones people actually ask.

Do I need tax returns at all?
On most bank statement programs, no. Some ask for a letter from your accountant confirming the expense ratio, which is a much lighter lift than two years of returns.
How much higher is the rate?
It varies with credit, down payment and the program. It is a real difference, so the honest comparison is against not buying at all, or against waiting two years for returns to catch up.
Can I refinance out of it later?
Yes, and many borrowers do, once returns show more income or the property has appreciated. Planning that exit at the start is part of the job.
Does this work for investment property?
Yes. There are also programs that qualify on the property's rental income alone rather than on your personal income at all.

Who handles bank statement and non-qm

Diego Esquivel

Mortgage Broker · NMLS #1592085

A broker who is also a developer and a construction company founder. Diego can tell you what a property is really worth before a lender does.

Read the full profile (714) 469-9577

Other programs

Compare it against the alternatives.

Most borrowers fit more than one program. Which one is best depends on how long you will hold the loan, not only on what you qualify for today.

Buying a homePurchase loans RefinancingLower it or shorten it ConventionalFrom 3% down FHA3.5% down, 580+ VANo down payment USDAZero down, eligible areas JumboAbove the limit Bank statementSelf employed InvestorDSCR and short sales CommercialFive units and up

Get a straight answer before you commit to anything.

Three minutes, no credit check, no obligation, and a named loan officer on the other end of it.

See what I qualify for Or call (714) 469-9577

August Mortgage Group, NMLS #2642110. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval and property appraisal.