📄 Self-Employed Mortgage
Bank Statement Loan Calculator
Calculate your qualifying income and maximum loan amount using 12 or 24 months of bank deposits — no tax returns needed.
📄 Bank Statement Details
Monthly Bank Deposits
Loan & Qualification Details
%
Bank statement loans typically 0.5–2% higher than conventional
%
Minimum 10–20% typical for bank statement loans
$
Car payments, credit cards, student loans, etc.
📈 Qualification Results
Qualifying Income
—
per month
Max Loan Amount
—
estimated
📈 Avg monthly deposits—
✅ Qualifying income/mo—
💰 Max monthly payment (DTI)—
🏠 Max home price—
📈 Down payment needed—
🔴 Est. monthly payment—
📈 Effective DTI—
Enter your monthly deposits above and click Calculate.
What is a Bank Statement Loan?
A bank statement loan is a non-QM (non-qualified mortgage) designed for self-employed borrowers, freelancers, gig workers, business owners, and real estate investors who cannot easily document their income through traditional W-2s or tax returns.
Instead of tax returns, lenders use 12 or 24 months of personal or business bank statements to calculate average monthly income. Because self-employed individuals often take significant deductions, their taxable income on tax returns is far lower than their actual cash flow — making bank statement loans essential.
How Qualifying Income is Calculated
Step 1: Add all deposits over 12 or 24 months
Step 2: Divide by number of months = Average Monthly Deposits
Step 3: Apply expense ratio = Qualifying Monthly Income
Example (Business account, 50% ratio):
$120,000 total deposits ÷ 12 = $10,000/month
$10,000 × 50% = $5,000 qualifying income/month
Example (Personal account, 100%):
$120,000 ÷ 12 = $10,000/month → $10,000 qualifying income
Step 2: Divide by number of months = Average Monthly Deposits
Step 3: Apply expense ratio = Qualifying Monthly Income
Example (Business account, 50% ratio):
$120,000 total deposits ÷ 12 = $10,000/month
$10,000 × 50% = $5,000 qualifying income/month
Example (Personal account, 100%):
$120,000 ÷ 12 = $10,000/month → $10,000 qualifying income
Expense Ratio by Account Type
| Account Type | Typical Expense Ratio | Income Used |
|---|---|---|
| Business bank statements | 40% – 60% | 40–60% of deposits |
| Personal bank statements | 80% – 100% | 80–100% of deposits |
| CPA expense letter | Actual business expenses | Documented % only |
Bank Statement Loan Requirements
- Self-employment verification — 2 years of self-employment history typical (business license, CPA letter, etc.)
- Credit score — minimum 620–680; best rates above 720
- Down payment — 10–20% minimum; 20%+ avoids additional requirements
- Reserves — 3–12 months of mortgage payments in savings
- DTI limit — typically 43–50% (qualifying income to total debt)
- Loan limits — many bank statement lenders go up to $3M–$5M
Bank Statement vs. Conventional Loan
| Feature | Bank Statement Loan | Conventional Loan |
|---|---|---|
| Income Documentation | Bank statements (12–24 mo) | W-2s, tax returns, pay stubs |
| Best for | Self-employed, business owners | W-2 employees |
| Interest Rate | 0.5%–2% higher | Standard market rate |
| Min. Down Payment | 10%–20% | 3%–5% (with PMI) |
| Loan Type | Non-QM | QM (qualified mortgage) |
Frequently Asked Questions
A bank statement loan is a non-QM mortgage that qualifies self-employed borrowers based on 12 or 24 months of bank deposits rather than tax returns or W-2s. It is ideal for business owners, freelancers, and self-employed individuals whose taxable income does not reflect their true cash flow.
Lenders average your total deposits over 12 or 24 months, then apply an expense ratio. For business accounts, typically 50% of deposits count as qualifying income. For personal accounts, 80–100% is used. Some lenders allow a CPA expense letter to document actual expenses for a more favorable ratio.
Most bank statement loan lenders require a minimum credit score of 620 to 680. Scores above 720 qualify for the best rates and terms. Rates are typically 0.5% to 2% higher than conventional loans.
Most lenders require either 12 or 24 months. A 24-month statement period often provides a more stable income average and may be required for certain loan amounts or credit profiles.
Some lenders allow a combination. However, you must be careful to avoid double-counting — business income transferred to personal accounts should not be counted twice. A CPA letter documenting business expenses can help optimize your qualifying income.
Maximum loan amounts depend on your qualifying income, DTI ratio, down payment, and the lender. Many bank statement lenders offer loans up to $3M–$5M. Use our calculator above to estimate your maximum based on your deposits.