If you're self-employed and your write-offs are killing your qualifying income, a bank statement loan lets you qualify on what actually hits your account — not what's on your 1040.
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When you're self-employed, tax returns often don't reflect what you actually earn. Business expenses, depreciation, and write-offs can reduce taxable income so far that conventional lenders see you as unqualifiable — even if your cash flow is strong.
A bank statement loan solves this by using your actual bank deposits as a proxy for income. We average your monthly deposits over 12 or 24 months, apply an expense factor, and use that as your qualifying income.
Examples for illustration only. Actual income calculation varies by lender and program. Contact us for a precise analysis.
Program guidelines vary by lender. These represent typical parameters across our bank statement lending partners.
Minimum $150,000. Up to $3M+ with select lenders for high-value properties in CA and FL.
10% down for purchases under $1M with strong credit. 20–25% typically required for loan amounts above $1.5M.
Minimum 640 FICO for most programs. Best rates and LTV available at 700+. Some lenders allow 620 with compensating factors.
12-month or 24-month statement history accepted. 24 months is preferred by most lenders and may yield better pricing.
DTI up to 50–55% depending on loan amount and LTV. More flexible than conventional's standard 43–45% cap.
Primary residence, second home, and investment properties eligible. 2–4 unit properties also accepted on select programs.
If your income is real but your tax returns don't show it, this program was designed for you.
LLCs, S-Corps, C-Corps. If the business revenue is yours and it hits your account, we can use it to qualify.
1099 income with irregular deposits. We average over 12–24 months to stabilize qualifying income.
Investors with complex depreciation schedules who look poor on paper but have strong cash flow.
Cash-heavy businesses with high revenue but significant write-offs that don't translate to taxable income.
Here's exactly where bank statement loans differ — and why they're often the better choice for self-employed borrowers.
| Feature | Bank Statement Loan | Conventional Loan |
|---|---|---|
| Income documentation | 12–24 months bank statements | 2 years tax returns + W2s |
| Self-employed friendly | ✓ Yes — designed for it | ✗ Write-offs reduce qualifying income |
| Minimum credit score | 640 | 620 (620–639 incurs pricing hits) |
| Minimum down payment | 10% | 3–5% |
| Max loan amount | $3M+ | $806,500 (conforming limit) |
| DTI flexibility | Up to 55% | Up to 45–50% |
| Interest rate | Slightly higher than conventional | Lowest available rates |
| LLCs / entities | ✓ Accepted (select programs) | ✗ Personal borrowing only |
| Investment properties | ✓ Eligible | ✓ Eligible (stricter guidelines) |
Send us 2–3 recent bank statements and we'll run a preliminary income analysis — no commitment, no hard credit pull.