Bank-Statement Loans for Self-Employed Borrowers in Florida

Self-employed borrowers often earn enough to qualify for a mortgage, but their tax returns may not accurately reflect their available cash flow. A bank-statement loan provides an alternative way to document qualifying income.

Instead of relying primarily on tax returns, the lender reviews eligible deposits shown on personal or business bank statements. These Non-QM programs may be available for purchasing or refinancing a primary residence, second home or investment property.

How Does a Bank-Statement Loan Work?

Depending on the program, the lender may review 12 or 24 months of personal or business bank statements to calculate qualifying income.

For business bank statements, the lender generally applies an expense factor to account for the cost of operating the business. Certain programs may allow a different expense factor when supported by a qualified third-party expense statement or profit-and-loss statement.

Transfers between accounts, loan proceeds and other non-income deposits are generally excluded. Large or unusual deposits may require additional documentation.

Who May Benefit?

A bank-statement mortgage may be suitable for:

• Business owners
• Independent contractors
• Realtors and mortgage professionals
• Consultants
• Commission-based professionals
• Freelancers
• Restaurant and hospitality owners
• Gig-economy workers
• Other borrowers with nontraditional income

Borrowers who report significant business deductions on their tax returns may benefit from having their eligible bank deposits evaluated.

Potential Benefits

Depending on the lender and program, bank-statement loans may offer:

• Qualification without traditional tax-return income calculations
• Personal or business bank-statement options
• Purchase and refinance financing
• Primary residence, second-home and investment-property options
• Fixed-rate and interest-only programs
• Loan options for borrowers with complex income

Because these are Non-QM mortgages, interest rates, down-payment requirements and fees may be higher than comparable conventional financing.

What Will the Lender Consider?

In addition to bank deposits, lenders generally evaluate:

• Credit history and credit score
• Down payment or available equity
• Cash reserves
• Business ownership history
• Continuity of self-employment
• Property type and occupancy
• Large or irregular deposits
• Overall ability to repay the mortgage

Bank statements should be complete, consistent and free of unexplained activity. Borrowers may also need to provide a business license, accountant’s letter, profit-and-loss statement or other documentation confirming the business’s existence.

Explore Your Florida Mortgage Options

Opportunity Mortgage Group works with multiple wholesale lenders offering mortgage solutions for self-employed borrowers. We can review your bank deposits, business structure, credit profile and property goals to identify available options.