P&L Overview:
What is a P&L Loan?
Documents you'll need
Benefits of P&L Loan
Requirements of P&L
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What is a Bank Statement Loan?
A bank statement loan is a type of mortgage that’s designed for self-employed individuals or business owners who might not have traditional income documentation like W-2s or pay stubs. Instead of using tax returns, lenders use bank statements—usually from the last 12 to 24 months—to verify your income and ability to repay the loan.
Key Features of a Bank Statement loan
A bank statement loan is a type of mortgage that’s designed for self-employed individuals or business owners who might not have traditional income documentation like W-2s or pay stubs. Instead of using tax returns, lenders use bank statements—usually from the last 12 to 24 months—to verify your income and ability to repay the loan.
Why use a Bank Statement Loan
Flexible income verification – Qualify using 12 to 24 months of bank statements instead of tax returns or W-2s.
Perfect for self-employed borrowers – Ideal for entrepreneurs, freelancers, and business owners with non-traditional income.
Use for home purchase or refinance – Great for buying a new home, refinancing an existing mortgage, or pulling cash out of equity.
Things to consider
Flexible income verification – Qualify using 12 to 24 months of bank statements instead of tax returns or W-2s.
Perfect for self-employed borrowers – Ideal for entrepreneurs, freelancers, and business owners with non-traditional income.
Use for home purchase or refinance – Great for buying a new home, refinancing an existing mortgage, or pulling cash out of equity.
The Loan That Looks Beyond Your Tax Return
Bank statement loans are tailored for entrepreneurs, freelancers, and small business owners whose true income is often hidden by tax strategies. Instead of relying solely on tax returns, lenders review your 12–24 months of bank statements to gauge your business’s real cash flow, giving you credit for the revenue you’re actually earning. Whether you’re buying property, refinancing debt, or accessing capital, this approach helps you qualify based on what your business makes, not just what’s on paper.
Ideal for contractors, consultants, and high-earning business owners, bank statement loans unlock financing when traditional options fall short. If your deposits show strong revenue but your tax returns don’t tell the full story, this solution bridges the gap: helping you secure funding at competitive terms.
7 Requirements for bank statement loans
1. Two Years of Bank Statements
Lenders will review 24 months of personal and/or business bank statements to verify income stability. This helps assess cash flow instead of relying solely on tax returns.
2. Business Profit & Loss Statement
A current P&L statement demonstrates your business’s revenue, expenses, and profitability. This provides lenders with a clear snapshot of your financial health.
3. Minimum 10% Down Payment
A 10% down payment reduces lender risk and shows your commitment to the investment. Some programs may allow lower down payments with stronger qualifications.
4. Adequate Cash Reserves
Reserves (typically 3-6 months of mortgage payments) prove you can handle unexpected expenses. This requirement varies based on loan type and property.
5. Credit Score
A 620 FICO score is the baseline for most bank statement loans. Higher scores can secure better rates and terms
6. DTI Below 45%
A debt-to-income ratio under 45% ensures you can manage monthly payments. Some lenders may accept higher DTIs with compensating factors.
7. Business Licenses & Legal Documents
Licenses, LLC/incorporation papers, and tax IDs validate your business’s legitimacy. These documents help streamline the underwriting process.
The Documents you will need:
The Documents
you will need:
Government-Issued ID
A valid driver’s license, passport, or state ID is required for identity verification.
Proof of Business Ownership
Submit legal documents (e.g., EIN letter, LLC filing) confirming your business ownership.
Proof of Residence
Recent utility bills, lease agreements, or mortgage statements to confirm your current address.
Business Banks Statements
Provide personal or business bank statements to verify income and cash flow, usually for 12–24 months
Credit Report
A credit report showing a minimum 620 FICO score for loan eligibility.
Interested in bank statement Loans?
No Tax Returns Required:
Ideal for self-employed borrowers, freelancers, and business owners with write-offs.Uses Bank Statements for Proof of Income:
Approves based on cash flow, not just W-2s or pay stubs.Faster & More Flexible Than Traditional Loans:
Simplified underwriting for quicker decisions.Higher Loan Amounts Possible:
Leverages real cash flow instead of taxable income.
Take the Next Step
Skip the tax returns—qualify with bank statements instead! If you’re self-employed or a business owner, our bank statement loans use your cash flow to secure financing. Fill out the form below to unlock a faster, simpler path to your real estate goals!