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✅ How Bank Statement Mortgage Loans Help Self-Employed Buyers Qualify Without Tax Returns

  • Writer: A king
    A king
  • Apr 8
  • 2 min read

If you're self-employed, a freelancer, or run your own business, you already know how hard it can be to qualify for a traditional mortgage. Even if your business is thriving, lenders often zero in on tax returns that don’t reflect your real income—especially if you write off a lot for tax purposes.

That’s where Bank Statement Mortgage Loans come in.

These flexible loan programs are designed specifically for entrepreneurs, 1099 earners, and small business owners who want to qualify based on actual cash flow—not adjusted gross income.

👉 Watch the full breakdown on YouTube here:🎥 https://youtu.be/6duXw99GKeo?feature=shared



🔍 What Is a Bank Statement Mortgage Loan?

A Bank Statement Loan allows you to qualify for a home loan using 12–24 months of personal or business bank statements instead of W-2s or tax returns.

Lenders review your deposits to calculate average monthly income, making this a powerful option if:

  • You have consistent revenue but heavy tax write-offs

  • You’re a freelancer or independent contractor

  • You run a cash-heavy business and don't take a regular salary

With a Bank Statement Loan, you get credit for your actual income—not just what’s left after deductions.

✅ Key Benefits of Bank Statement Loans

  • No tax returns or W-2s required

  • Keep your business write-offs without hurting your buying power

  • Qualify for larger loan amounts

  • Available for primary, secondary, or investment properties

  • Loan amounts up to $4M with some lenders

At Monarch Financial, we work with 30+ lenders who offer competitive programs tailored to your situation.

🏡 Who Can Benefit?

Bank Statement Loans are ideal for:

  • Realtors and real estate investors

  • Consultants and coaches

  • E-commerce business owners

  • Gig economy workers (Uber, DoorDash, etc.)

  • Content creators, influencers, and YouTubers

  • 1099 contractors or side hustlers

Even if you’ve been turned down for a traditional loan, this could be your way back in.

💡 Bank Statement Loans vs. DSCR Loans

While both Bank Statement and DSCR (Debt Service Coverage Ratio) loans are non-traditional mortgage options, they serve different purposes.

DSCR Loans qualify you based on rental income from an investment property. They’re great if:

  • You’re buying strictly for investment

  • You don’t want to use personal income at all

However, Bank Statement Loans may be a better fit if:

  • You’re buying a primary or second home

  • You want to avoid prepayment penalties common with DSCR

  • You want to qualify for more based on your actual income

  • You plan to live in the property (DSCR doesn’t allow that)

Want help deciding which is best for your goals? Text me at 417-686-2700 and I’ll walk you through your options.

📥 Download the FREE Bank Statement Loan Guide

Want a deeper dive? I’ve created a FREE guide to walk you through everything—what to prepare, how income is calculated, and how to get approved faster.

👋 Let’s Talk About Your Scenario

If you’re ready to explore how a Bank Statement Loan could work for your unique income situation, let’s connect:

📅 Schedule a free strategy call: https://calendly.com/monarchlender📲 Text or call me directly at 417-686-2700📧 Email: Andrew@monarchlender.comNMLS #1176336

Don't let tax write-offs keep you from buying a home. With the right loan program, homeownership is within reach—even as an entrepreneur.

 
 
 

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