Bank Statement Loans — Your Income Is Real. Let's Prove It.
Months of Statements
Tax Returns Required
Days to Close
BBB Rating
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What Is a Bank Statement Loan?
A bank statement loan is a mortgage that qualifies you based on your actual bank deposits rather than tax returns or W2s. Instead of documenting income through two years of tax filings — which often reflect significant write-offs — you provide 12 or 24 months of personal or business bank statements. The lender uses your average monthly deposits to calculate qualifying income.
This program exists because the traditional mortgage system was built for W2 employees. If you’re self-employed, run your own business, work on contract, or receive income in ways that don’t fit neatly on a 1040, the conventional qualification process penalises you for it. Bank statement loans are the correction.
Home to one of the highest concentrations of self-employed workers, freelancers, and small business owners in the country — this program fills a real and significant gap. If your business is generating income and your deposits reflect it, there’s a strong chance you qualify. Compare a Bank Statement Loan with a 1099 Loan →
Who Bank Statement Loans Are For:
- Self-employed business owners
- Freelancers & independent contractors
- Real estate investors
- Consultants & creative professionals
- Gig economy & 1099 workers
- Business owners with large write-offs
- Anyone whose tax returns understate actual income
Bank Statement Loan Requirements
680+ unlocks better rates and terms. Some programs accept 580+. Reviewed alongside deposit history and self-employment documentation.
10–20% depending on loan amount, credit profile, and property type. Non-QM programs vary more widely than conventional.
CPA letter or business license verifying history typically required.
Most recent 12 months minimum; 24 months preferred for variable income.
Calculated using the qualifying income derived from bank deposits — not tax return figures.
Single-family, condos, 2–4 unit properties across New York, New Jersey, Connecticut, Pennsylvania, and Florida.
How Your Income Is Calculated — Personal vs Business Statements:
12 or 24 months of personal account deposits. Average monthly deposits = qualifying monthly income. Best when business income flows directly to personal accounts.
12 or 24 months of business account deposits. Lender applies an expense ratio (typically 50%) to account for business operating costs. Your loan officer can determine which type qualifies you for more.
Write-offs, depreciation, retirement contributions — none of it factors in. Your deposits are the income. What's in the account is what counts.
Why Self-Employed Borrowers Choose Powerhouse Solutions for Bank Statement Loans
Bank statement loan underwriting requires experience. Seasonal income, multiple accounts, business vs personal deposits, expense ratios — our loan officers have seen every variation of self-employed income. We know how to structure the qualification to give you the best possible number, not just the first one we calculate.
We do not ask for tax returns as part of the bank statement loan qualification process. Your deductions, write-offs, and business expenses are your business. What matters is what flows through your accounts — and whether it supports the loan. Full stop.
Bank statement loans at Powerhouse Solutions can be used for primary residences, second homes, and investment properties. Self-employed investors and business owners building a portfolio don't have to switch programs between properties. We handle it all under one roof.
We originate, underwrite, and fund every bank statement loan in-house. Non-QM loans like this one require a lender who controls the full process — because the documentation is different and the underwriting is nuanced. No broker passing your file to someone who doesn't know the program. We close in under 30 days.
Bank Statement vs 1099 vs P&L — Which Qualifies You for More?
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Feature
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Bank Statement Loan
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1099 Loan
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P&L Loan
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|---|---|---|---|
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Income Document
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12–24 months of bank deposits
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1099-NEC or 1099-MISC forms
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CPA-prepared profit & loss statement
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Tax Returns Required
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Not required
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Not required
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Not required
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Income Calculation
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Avg monthly deposits (50% expense factor on biz accounts)
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Gross 1099 income ÷ 12 or 24 months
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Net income per CPA-certified P&L
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Best For
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Business owners with strong deposit history
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Contractors paid via 1099s
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Business owners whose P&L net income exceeds deposits
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Documentation Burden
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Higher — 12–24 months of statements
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Simpler — just the 1099 forms
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Lower — one CPA-prepared document
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Min. Self-Emp. History
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2 years
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1–2 years
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2 years
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Closing Timeline at PHS
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Under 30 days
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Under 30 days
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Under 30 days
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Not sure which program produces the strongest qualification for your income structure? Your Powerhouse Solutions loan officer will run the numbers on all three and show you which gives you more.
Your Deposits Should Work for You.
How It Works
From Application to Closing
Tell us about your situation in under 2 minutes. No commitment, no credit pull.
Your dedicated loan officer reviews your details and issues a pre-approval letter, often the same day.
PHS manages the entire process from underwriting to title. You focus on finding your home.
As a direct lender, we control the timeline. No bank delays, no middlemen.
What Our Bank Statement Borrowers Say
Bank Statement Loan FAQs
What is a bank statement loan and how does it work?
A bank statement loan is a mortgage that qualifies you based on your actual bank deposits rather than tax returns or W2s. Instead of submitting two years of tax filings, you provide 12 or 24 months of personal or business bank statements. The lender calculates your average monthly income from those deposits and uses that figure to qualify you. This program exists specifically for self-employed borrowers, business owners, freelancers, and anyone whose tax returns don’t reflect their true income.