If you’re self-employed, your tax return is designed to show the IRS as little income as possible — which is smart for taxes and terrible for a traditional mortgage application. A bank statement loan solves that problem: instead of tax returns and W-2s, the lender qualifies you using 12 or 24 months of personal or business bank statements, averaging your deposits to establish income.
Good fit if: you’re a business owner, freelancer, contractor, or gig professional with strong real cash flow, typically a credit score of 660 or better, and a reasonable down payment (often 10–20%; more buys better pricing). Business owners may use an expense factor or a CPA letter to refine the income calculation — I’ll help you present the strongest, cleanest file.
Expect a slightly higher rate than a full-documentation loan; you’re paying for flexibility. That’s exactly why shopping matters: bank statement guidelines and pricing differ widely across lenders, and this is a core Non-QM specialty within Loan Factory’s 240+ lender network. Bring me your statements and your story — I’ll tell you quickly and honestly whether the numbers work.
True Home Lending is operated by Navaneet Dutt, Mortgage Loan Originator, NMLS #2262708, with Loan Factory, NMLS #320841. All loans are subject to credit and property approval. Program availability, rates, terms, and conditions are subject to change without notice and may vary by state, lender, and borrower profile. Not all applicants will qualify. This content is for education only and is not a quote, a loan approval, or a commitment to lend. Equal Housing Opportunity.