Bank statement loan FAQ

A mortgage that uses your bank statements, usually 12 or 24 months, to document income in place of tax returns. It is designed for self-employed borrowers whose tax returns understate their cash flow.

Business owners, independent contractors, freelancers, gig workers and other self-employed borrowers whose deposits are steadier or larger than their tax returns suggest.

That label is not used by lenders in this space. Bank statement loans are non-QM, which means they use different documentation. Pricing and terms still depend on your credit, property and program.

Many programs look for about two years. Select programs may accept less, as little as one year, with support such as a letter from a tax professional.

Deposits that look like genuine business income. Moves between your own accounts, refunds, loan proceeds and one-time asset sales are normally left out.

Often yes. Lenders will usually review every account that holds counted deposits and will trace transfers between them.

Yes, but a lender will document each borrower. If only one of you is self-employed, the other can be documented in the way that fits their income.

Select programs start in the 600s. Stronger scores generally open more programs and more flexibility.

A lender needs to review credit to move forward. Ask your loan officer how and when it is pulled, and what to expect.

It depends on the price, the program and the closing costs. A loan officer can size it for your scenario.

Many programs ask for reserves, which are liquid funds left after closing. The amount is often counted in months of housing payments and can rise with the loan size.

On select programs, yes. Second homes have occupancy rules that a lender will explain.

Select programs allow it. Those are business-purpose loans, and a property-income program might fit better.

Yes, on select programs. A cash-out refinance has extra requirements, so tell your loan officer your goal early.

A longer window can soften one slow stretch. If you have a clear reason for the dip, a loan officer can help you document it.

A 12 month window may reflect recent growth better than a 24 month one. Lenders still look for a stable pattern.

Not for every program, but a CPA, enrolled agent or licensed tax preparer letter can help verify your business, your history or your expenses on programs that accept one.

Some programs accept business registration or licensing as evidence of history. Others want a letter. Ask which proof the program takes.

Cash is difficult to document. A lender may exclude deposits it cannot trace to business activity.

Gifts are not business income. They may help with funds to close under the program rules, with a gift letter and documentation.

A small number might be reviewed and tolerated on select programs. Frequent overdrafts raise questions.

This site is operated by 1st Advantage Mortgage, a mortgage broker and lender. Loans are subject to approval and program terms.

Yes. The Apply now button opens the secure application on 1st Advantage Mortgage's application portal.

Yes. Call 704-343-8681 or request a quote and a loan officer will reach out.

No. They change with your scenario, so we discuss them in a direct conversation.

North Carolina, South Carolina, Virginia, Texas and Florida. Program availability varies by state.

Search the company on NMLS Consumer Access using NMLS ID 2468711. Our disclosures page has the company details.

It varies with how quickly documents arrive, the appraisal, title work and the program. A well-prepared file usually moves faster.

A quote request is not a loan application. Credit is only reviewed when you choose to move forward.

Start collecting your statements, write down when you started the business, and talk with a loan officer about which window fits.