Bank Statement Loans for Self-Employed Buyers

Entrepreneurs, 1099 contractors, business owners, and gig economy professionals often maximize legitimate tax deductions to reduce their taxable net income.

While that strategy minimizes income tax, it can cause conventional mortgage automated underwriting systems to show insufficient income. Bank statement loans solve this by analyzing 12 to 24 months of business or personal account deposits.

By calculating an expense factor or utilizing a CPA letter of expense ratio, self-employed borrowers can qualify for competitive mortgage financing that accurately reflects their real buying capacity.