Finding the right lender for a bank statement loan can be a challenge, especially if you’re self-employed or have non-traditional income sources. As a business owner myself I know the difficulties of providing the typical pay stubs and tax returns that most mortgage lenders require. That’s why I put together this list of the 7 best bank statement loan lenders based on my personal experience and extensive research.
What is a Bank Statement Loan?
A bank statement loan, also known as a ‘bank statement mortgage’, allows borrowers to qualify for a mortgage by providing 12-24 months of personal or business bank statements. The lender reviews the deposits and balances to determine your income and ability to repay the loan
This type of financing is ideal for:
- Self-employed individuals
- Business owners
- Independent contractors
- Freelancers
- Anyone with non-W2 income
It provides more flexible qualifying guidelines for those who may not meet the requirements for a conventional mortgage.
How Do Bank Statement Loans Work?
Here’s a quick overview of how these loans work:
- You provide 12-24 months of bank statements to the lender
- The lender analyzes your deposits, balances, and withdrawal activity
- They use this data to calculate your income and cash flow
- Income is often calculated by taking your total deposits over 12 months and reducing it by a percentage (usually 30-50%)
- Your debt-to-income ratio is calculated and credit history reviewed
- If approved, you can receive financing up to $3 million
Now let’s look at my top picks for bank statement loan lenders. I evaluated each on eligibility guidelines, loan amounts, interest rates, fees, reputation, and customer experience.
1. Angel Oak Mortgage Solutions
Angel Oak Mortgage Solutions tops my list for best bank statement loans. They offer flexible programs for self-employed borrowers, including:
- Bank statement loans from $150,000 up to $3 million
- Personal or business bank statements accepted
- Only 12-24 months of statements required
- Low mortgage rates and fees
I like that they allow 12 months of bank statements, whereas many competitors require 24 months. They have an easy online application and excellent customer service. Angel Oak caters well to real estate investors too.
2. CrossCountry Mortgage
CrossCountry Mortgage offers the Simple Access bank statement loan program nationwide. Some benefits include:
- Up to 80% LTV for primary residence
- Investment properties up to 75% LTV
- Loan amounts from $100k up to $3.5 million
- 12 months personal/business bank statements
- Fast online application and rate quotes
Their Simple Access program uses 50% of your total deposits as your qualifying income. So if you had $120k in deposits over 12 months, they’d use $60k income to calculate your approval amount and rates.
3. New American Funding
New American Funding offers bank statement loans in 25 states, with loan amounts ranging from $150k to $3 million. I like them for:
- Minimum 620 credit score
- 12 months bank statements
- 75% LTV on primary residence
- 70% LTV for investment properties
- Lower fees than many competitors
Their bank statement loan allows you to use 35% of your deposits as verifiable income. They also factor in your assets and credit scores for loan qualification.
4. PrimeLending
PrimeLending has bank statement mortgage programs nationwide through its Signature Advantage Loan. Benefits include:
- Loan amounts up to $3 million
- 12 months personal/business bank statements
- Primary residence up to 80% LTV
- Investment up to 75% LTV
- Online applications with eSignature option
PrimeLending requires a minimum 680 credit score and 40% of your deposits to calculate your monthly income. Their bank statement loan process is straightforward and they have good reviews.
5. Luxury Mortgage
Luxury Mortgage offers the At Ease bank statement loan in 14 states nationwide. Here are some key features:
- 85% LTV on primary residence
- 80% LTV for investment property
- 12 months bank statements accepted
- Loans up to $3 million
- Online applications available
I like their higher LTV amounts, making them a great option if you need to maximize your financing. Their minimum FICO score is 700 and rates are competitive.
6. First Financial
First Financial provides the Business First loan program for bank statement mortgages. Benefits include:
- Available in AZ, CA, CO, FL, ID, OR, TX, UT, WA
- 12 or 24 months bank statements accepted
- Loans up to $3 million
- Online applications with eSignature option
- Primary and investment properties eligible
First Financial uses 50% of your total deposits as income for qualification. They have good reviews and one of the larger lender footprints for bank statement loans.
7. Cherry Creek Mortgage
Cherry Creek Mortgage offers bank statement loans in over 30 states nationwide. Here are some highlights:
- 12 or 24 months personal/business bank statements
- Minimum 680 credit score
- Loans up to $3 million
- Primary residence and 2nd homes eligible
- Investment properties on case-by-case basis
Cherry Creek has been in business for over 30 years and has great customer service. Their bank statement loan uses 45% of your deposits to calculate your income and debt ratios.
Finding the Best Bank Statement Loan
When searching for your lender, I recommend comparing interest rates, fees, eligibility guidelines, required reserves, and customer satisfaction scores. Be sure to ask about their calculation method and what percentage of your deposits they’ll consider as income.
Bank Statement Loans vs Traditional Home Loans
Bank statement loans differ from traditional home loans in a few key areas. In the table below we lay out the biggest differences between these two methods of home financing.
| Bank Statement Loan | Traditional Mortgage | |
| Who is it for? | Business owners, freelancers, investors, retirees, or anyone who doesn’t receive a W-2 | Most employees who receive a W-2 |
| What is it used for? | Purchasing a primary residence, a vacation home, or an investment property | Purchasing a primary residence, a vacation home, or an investment property |
| How is income verified? | 12 to 24 months of bank statements | Tax returns and pay stubs |
| What’s the down payment? | 10% minimum | 3% to 5% minimum (20% to avoid PMI) |
| What’s the minimum credit score? | 620 | 620 |
| How long is the loan term? | 15 to 40 years | 15 to 30 years |
Benefits of bank statement loans
Some of the key benefits of bank statement loans include:
- Qualify using bank statements: The main benefit of this type of financing is that you can qualify using 12 or 24-month bank statements rather than pay stubs or tax returns. This makes it easier for small business owners and self-employed individuals to qualify for home financing. You may use your business bank statements or personal bank statements to qualify.
- No tax returns needed: When underwriting a bank statement loan, lenders don’t necessarily need to look at your tax returns, which may not accurately represent how much income you actually earn.
- Down payments as low as 10%: You can get a bank statement loan with a minimum down payment of 10%.
- Cash-out refinance up to 80% of property value: A cash-out refinance loan can provide you with funds needed for big purchases, home improvements, emergency expenses, and more. If you are looking to cash-out more than 80% and not touch the rate on your current first mortgage bank statement home equity loans (HELOANs) are also available as an option.
- Loan amounts of up to $20 million: High loan amounts make it possible to widen the scope of your home search and purchase high-value properties.
- DTI ratios of up to 50% can qualify: Flexible DTI ratio requirements make qualifying for a bank statement loan easier.
- Fixed- and adjustable-rate options available: Choose from a fixed-rate bank statement loan or opt for an adjustable rate.
- Interest-only option available: You can set up bank statement loans through Griffin Funding so that you only pay the loan’s interest for a predetermined period of time.
The Ultimate Guide to Bank Statement Loans for Real Estate!
FAQ
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