Self-Employed Mortgage — Bank Statement Loans, No Tax Returns
Your write-offs shouldn't kill your mortgage. Bank statement loans qualify you on what you actually deposit — not what your CPA put on your tax return.
Nate Jones · NMLS #304056 · New American Funding
A bank statement loan allows self-employed borrowers to qualify for a mortgage using 12-24 months of bank deposits instead of tax returns — so your write-offs don't reduce your qualifying income. Business owners, freelancers, and 1099 contractors with 2+ years of self-employment history are eligible. Nate Jones (NMLS #304056) at New American Funding closes bank statement loans in 48 states.
How Bank Statement Loans Work
Instead of using your tax return (which is reduced by all your write-offs), bank statement lenders look at your actual deposits over the last 12-24 months.
They calculate an average monthly deposit and use that as your qualifying income.
This means the business owner depositing $25K/month but showing $8K on their tax return can actually qualify based on their real income.
Who Qualifies
- ✓Business owners with 2+ years of self-employment
- ✓1099 contractors and freelancers
- ✓Gig economy workers with consistent income
- ✓Borrowers with high write-offs that reduce tax return income
- ✓Business owners with complex or multiple income streams
Program Highlights
Documentation
12-24 month bank statements
Min Credit Score
660+
Max Loan Amount
Up to $3M
Down Payment
As low as 10%
Self-Employed
2+ years required
Property Types
Primary, 2nd home, investment
Common Questions
How do self-employed borrowers qualify?
Nate answers in 90 seconds
What documents do I need for a bank statement loan?
Nate answers in 90 seconds
Stated Income Loans — The Alt-Doc Alternative
If you've been searching for "stated income loans," here's what you need to know: the old-school stated income loan — where you literally just wrote down a number and the lender took your word for it — doesn't exist anymore. Those went away after 2008 for good reason.
But the need didn't go away. Business owners, freelancers, and 1099 contractors still have the same problem: tax returns that don't reflect what they actually earn.
That's where bank statement loans come in. Think of them as the modern, compliant version of stated income. Instead of just stating a number, you show 12-24 months of bank deposits. The lender calculates your income from what's actually hitting your account.
It's a smarter system. You still get to qualify on your real income rather than your tax return income — but there's actual documentation behind it. I help self-employed borrowers navigate this every single day.
The rates run a bit higher than conventional (usually 0.5-1.5% more), but when your tax return shows $60K and your bank statements show $180K, the math speaks for itself.
Self Employed Home Loans Without Tax Returns
Here's the deal: if you're self-employed, your CPA is doing their job by minimizing your taxable income. But that same tax return that saves you money in April can wreck your mortgage application.
Bank statement loans solve this by looking at 12 or 24 months of actual deposits instead. No tax returns, no W-2s, no jumping through hoops to explain your write-offs to an underwriter.
You can use personal bank statements or business bank statements — your choice. Personal statements are simpler since the deposits are treated as income directly. Business statements work too, but lenders typically apply an expense factor (usually around 50%) to account for business costs.
How do lenders calculate your income? They add up your deposits over the statement period and divide by the number of months. That average monthly deposit becomes your qualifying income.
For a lot of my self-employed clients, this approach qualifies them for 2-3x more than their tax return would. It's not a loophole — it's just a more accurate picture of what you actually earn.
No Doc Loans — What's Still Available in 2026
True "no doc" loans — where you didn't provide any financial documentation at all — haven't existed since the post-2008 regulatory overhaul. And honestly, that's probably a good thing.
What does exist in 2026 are programs that feel close to no-doc for the right borrower. Bank statement loans skip tax returns entirely. Asset depletion loans qualify you based on liquid assets. DSCR loans qualify on property income alone.
The common thread? Each program uses a specific, alternative form of documentation instead of the traditional W-2 and tax return stack. Less paperwork, same result — you get the mortgage without the headache.
Not sure which alt-doc path fits your situation? Call me and I'll sort it out in about two minutes.
Self Employed Mortgage FAQ
Are stated income loans still available in 2026?
True stated income loans (where you just state your income with no verification) were eliminated after 2008. Modern alternatives like bank statement loans verify income using deposits instead of tax returns.
What's the difference between a stated income loan and a bank statement loan?
A stated income loan required no proof at all. A bank statement loan uses 12-24 months of bank deposits to calculate your qualifying income — more verification, but still no tax returns needed.
Do stated income loans have higher rates?
Bank statement and alt-doc loans typically run 0.5-1.5% higher than conventional rates. The trade-off is qualifying without showing tax returns that reflect write-offs.
How many months of bank statements do I need?
Most lenders require 12 months minimum. 24 months gives you more options and often better pricing.
Can I use business bank statements instead of personal?
Yes. Business bank statements work, but lenders typically apply an expense factor (usually 50%) to account for business costs.
What credit score do I need for a bank statement loan?
Most bank statement lenders require 620-640 minimum. 680+ gets you significantly better rates and terms.
Ready to See What You Qualify For?
Free review. No credit pull. Nate responds same day.