Bank Statement Loans
A bank statement loan qualifies self-employed borrowers on 12–24 months of business deposits — no tax returns required. The lender averages your monthly deposits and applies an expense factor (typically 50%) to arrive at qualifying income.
By Sunrise Lending
About this program
What is a Bank Statement Loans?
How it works — step by step
Take the 60-second check-in
Answer five questions about how you earn and what you're trying to do. No credit pull, no commitment. The matcher surfaces the product fit and the documentation path most likely to fund your file.
Gather your bank statements
12 or 24 months of business bank statements (all accounts that receive business deposits). A CPA letter is optional but can significantly raise your qualifying income if your actual expense ratio is below 50%.
Licensed MLO reviews the file
A licensed Sunrise loan officer reviews your match, discusses your situation, and confirms the program fit. This is the first formal conversation — nothing is locked until you choose to apply.
Underwriting on deposit-based income
The lender calculates qualifying income from your average monthly deposits. Your tax returns are not used to calculate income, though they may be reviewed for red flags. Underwriting proceeds like a conventional file from here.
Close and fund
Well-organized bank statement files typically close in 30–45 days. Your licensed officer coordinates the closing timeline and keeps you informed at each milestone.
What it usually looks like
- 2+ years self-employed (most programs; some accept 12+ months)
- Business bank statements — 12 or 24 months, all deposit accounts
- Credit score requirements vary by lender and program; pricing generally improves at higher score bands
- 10–25% down payment depending on property type and LTV
- CPA letter optional — can override the 50% expense factor
- No tax returns required for income qualification
- Reserves: typically 3–12 months PITIA depending on LTV and program
How it compares
| Factor | Bank Statement Loan | Conventional | FHA |
|---|---|---|---|
| Income documentation | 12–24 mos. bank statements | W-2 or tax returns (2 yrs) | W-2 or tax returns (2 yrs) |
| Tax returns required | No (not for income calc) | Yes | Yes |
| Ideal for | Self-employed / business owners | W-2 employees | First-time buyers, lower credit |
| Min. credit score | ~640 (program varies) | 620 (conventional) | 580 (FHA) |
| Down payment | 10–25% | 3–20% | 3.5% |
| Loan limits | No agency cap (portfolio) | Conforming limits apply | FHA limits apply |
| PMI / MIP | No PMI (not agency) | PMI if <20% down | MIP always |
Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.
Real scenarios
HVAC contractor, Phoenix AZ
A 12-year HVAC business owner with $1.6M in annual revenue had a Schedule C showing $112K net after equipment depreciation, truck fleet costs, and payroll. His business checking averaged $68K/month over 24 months. At 50% of deposits, qualifying income was $34K/month — well above what his tax return showed. He purchased a $780K home with 20% down.
- Annual revenue
- $1.6M
- Avg. monthly deposits
- $68K
- Qualifying income
- $34K/mo
- Purchase price
- $780K
Illustrative scenario only. Numbers are representative of typical bank statement files. Not a commitment to lend.
Restaurant owner, Chicago IL
A restaurant owner with two locations had an LLC showing breakeven on the Schedule C after COGS, labor, and rent. Her combined business accounts averaged $52K/month. A CPA letter documented her actual expense ratio at 38% — lower than the 50% default, so more of her deposits counted toward qualifying income. She refinanced with cash-out to fund a third location.
- Avg. monthly deposits
- $52K
- CPA-documented expense ratio
- 38%
- Qualifying income
- $32K/mo
- Purpose
- Cash-out refi
Illustrative scenario only. Not a commitment to lend.
Who this fits
Common questions
- Who is the bank statement loan designed for?
- Self-employed business owners — sole props, LLC owners, S-corp principals — whose tax returns understate real income after legitimate write-offs. If your business deposits substantially exceed your 1040 taxable income, a bank statement program is usually the right starting point.
- How is qualifying income calculated on a bank statement loan?
- Typically as 50% of average monthly business deposits over 12 or 24 months. The 50% is an expense-factor proxy. A CPA letter documenting your actual expense ratio can override it where the real ratio is lower — which raises qualifying income.
- Do I need tax returns for a bank statement loan?
- No. The defining feature of bank statement programs is that tax returns are not used to calculate qualifying income. Lenders may review them for sanity-checking but they do not drive the income calculation.
- What documents do I need to start?
- 12 or 24 months of business bank statements (all accounts receiving deposits), government ID, and a list of all business accounts. A CPA letter is optional but can materially improve qualifying income if your actual expense ratio is below 50%.
- How long does a bank statement loan take to close?
- Well-organized bank statement files typically close in 30–45 days. The matcher gets you to a product fit immediately; full documentation review starts after your licensed officer confirms the program.
- Can I use personal bank statements instead of business?
- Some programs accept personal bank statements at 100% of deposits (no expense factor) when business deposits genuinely flow through a personal account. Mixed accounts complicate qualification; both statement types may be required.
- What credit score do I need for a bank statement loan?
- Bank statement programs generally start around the mid-600s and improve materially at 720+. The screener asks for a band so the matcher narrows you to programs that actually accept your profile.
- Can I do a cash-out refinance with a bank statement loan?
- Yes. Bank statement programs support purchase, rate-and-term refi, and cash-out refi. Cash-out LTV limits are typically lower (often 70–75% max). The matcher checks your scenario and a licensed officer confirms.
Not sure if Bank Statement Loans is the right fit?
Take the 60-second check-in. The matcher narrows you to the right path; a licensed mortgage officer reviews before anything formal moves.
Related resources
Sources
- 1.Consumer Financial Protection Bureau (CFPB). Ability-to-Repay and Qualified Mortgage Standards — Accessed June 2026
- 2.Federal Reserve Bank of St. Louis (FRED). Small Business Formation and Self-Employment Statistics — Accessed June 2026
- 3.U.S. Small Business Administration (SBA). Small Business Facts: Self-Employed Workers — Accessed June 2026
Bank statement programs vary by lender. Qualifying-income calculations (24-month vs 12-month look-back, 50% expense factor, CPA-letter overrides) are confirmed per file. Final approval, terms, and rates are determined by the lender after full underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.