EMPIRE WEST MORTGAGE LENDING

Bank Statement Loan Program

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The Bank Statement Loan Program is a flexible mortgage solution designed for self-employed borrowers, entrepreneurs, independent contractors, and business owners who may not qualify for traditional financing due to the complexity of their income documentation. Instead of using tax returns or W-2s, lenders evaluate personal or business bank statements to determine income and repayment ability.

This program provides a powerful alternative for borrowers with strong cash flow who want to purchase or refinance a home while avoiding the limitations of standard income verification requirements.

 

How Income Is Calculated

Lenders analyze 12 to 24 months of personal or business bank statements to identify average monthly deposits and determine qualifying income. Typical guidelines include:

• Personal Bank Statements: 100% of eligible deposits may be counted as income.

• Business Bank Statements: A percentage (often 50%–80%) of deposits may be used to account for business expenses.

• CPA or Business Expense Letter may be required depending on lender policy.

 

Key Advantages of the Bank Statement Program

• No Tax Returns Needed: Qualification is based on bank deposits, not taxable income.

• Ideal for Self-Employed Borrowers: Especially beneficial for business owners who reinvest income or take deductions.

• Higher Buying Power: Allows borrowers to qualify based on actual cash flow, often resulting in increased loan amounts.

• Flexible Loan Structures: Available for purchases, refinances, and cash-out refinances.

• Competitive Terms: Fixed and adjustable-rate options tailored for non-traditional income profiles.

• Credit Flexibility: More lenient credit standards compared to conventional loans.

 

Who Is a Good Candidate for a Bank Statement Loan?

This program is ideal for:

• Self-employed individuals

• Freelancers and independent contractors

• Gig-economy workers

• Business owners with significant deductions on tax returns

• Borrowers with strong bank deposit history but limited traditional documentation

 

Why Choose the Bank Statement Loan Program?

This loan offers a practical and accessible pathway to homeownership for borrowers whose income is strong but not easily captured through traditional documentation. With greater flexibility and a streamlined approval process, the Bank Statement Program helps self-employed clients secure financing that aligns with their real financial profile.