Bank statement loan advantages
- No tax returns, W-2s, or 4506-C required
- Qualify on 12 or 24 months of bank statements
- Loan amounts from $150K to $4M
- Credit scores from 620
- Up to 90% LTV on primary residence
- Primary, second home, and investment occupancies eligible
Choose your bank statement path
Total Quality Lending offers four bank statement variants — pick the one that matches how your income actually flows.
12-Month Bank Statement Loan
Shorter look-back — qualify on one year of statements. Document eligible recent cash flow while meeting the required business history.
24-Month Bank Statement Loan
Two-year averaging produces a smoother qualifying income for businesses with income that changes over time.
Business Bank Statement Mortgage
Use 12 or 24 months of business statements only. Three income-calc methods: fixed 50% expense ratio, CPA letter, or 3rd-party P&L.
Personal Bank Statement Mortgage
Use 12/24 months of personal statements plus 2 months of business statements. Built for sole proprietors and freelancers.
How bank statement loans work
A bank statement loan replaces tax returns with deposits. Underwriting averages eligible deposits across 12 or 24 months of statements to produce a qualifying monthly income. The result: business owners and self-employed borrowers who write off heavily on Schedule C can still qualify based on actual cash flow.
Total Quality Lending’s bank statement loans sit inside the Prime Time non-QM program. Loan amounts run from $150K to $4M, credit scores start at 620, and DTI runs up to 50% (55% on primary residence at ≤80% LTV with $3,500 residual income). 15-, 30-, and 40-year fixed terms are available, plus 5/6, 7/6, and 10/6 ARMs. Interest-only is allowed at 660+ FICO up to 90% LTV.
For the full underwriting matrix — FICO × loan-amount LTV tiers, reserves, housing-history, and credit-event seasoning — see our Prime Time loan program page.
Bank statement mortgages — FAQs
What is a bank statement loan?
A bank statement loan is a non-QM mortgage that qualifies self-employed borrowers using deposits from 12 or 24 months of personal or business bank statements instead of tax returns or W-2s. Total Quality Lending offers bank statement loans under our Prime Time program with up to 90% LTV.
Who qualifies for a bank statement mortgage?
Self-employed borrowers, 1099 contractors, business owners, sole proprietors, freelancers, and gig workers whose tax returns understate true cash flow due to write-offs. You need to show consistent deposits and at least 2 years of self-employment history.
Personal vs business bank statements — which do I use?
Personal bank statements are best when most of your business income lands in a personal account. You'll provide 12 or 24 months of personal statements plus 2 months of business statements showing activity and transfers. Business bank statements are best when income stays in a business account — you only provide business statements (12 or 24 months).
How much can I borrow?
Bank statement loans run from $150K to $4M under the Prime Time program. LTV ranges from 90% at the top FICO/loan tier down to 65–70% for the highest loan tiers. State overlays apply to CT, FL, IL, NJ, and NY.
What credit score do I need?
Minimum credit score is 620. Best terms unlock at 720+. Interest-only options are available for 660+ FICO up to 90% LTV.
Are bank statement loans only for investment properties?
No — bank statement mortgages work for primary residence, second home, and investment properties under Prime Time. Investment property bank statement loans are a separate product from DSCR loans (which qualify on rental income rather than borrower income).
How long does a bank statement loan take to close?
Total Quality Lending typically closes Prime Time bank statement loans in 21–30 days. Faster closes are possible when the borrower has statements ready and the appraisal is the only outstanding item.
Is a bank statement loan the same as a stated income loan?
No. The pre-2008 stated-income loan took the borrower's word for income with no verification, and it no longer exists in that form. A bank statement loan verifies income — an underwriter analyzes 12 or 24 months of actual deposits and applies a documented expense factor. It's the compliant, ability-to-repay version of alt-doc lending built for self-employed borrowers whose tax returns understate real cash flow.
Skip the tax returns. Use your statements.
Get a no-tax-return mortgage quote in minutes. Your bank statements are all we need to start.
Get my bank statement quoteChoose 12 or 24 months of bank statements
The 12-month statement option
Use the most recent 12 consecutive months of eligible personal or business statements. Personal statements also require two months of business statements showing activity and transfers. Eligible personal deposits are divided by 12; business deposits require the applicable expense analysis before the monthly income is determined. A shorter statement period does not waive the two-year self-employment and business-history requirements.
The 24-month statement option
Use 24 consecutive months when the longer history provides a clearer view of your business. Eligible personal deposits are divided by 24. On a business path, apply the supported expense method and ownership analysis before averaging. Review changing or declining income with the underwriter rather than assuming that a longer average guarantees more qualifying income or better pricing.
Three business expense methods
Business statements may use a fixed 50% expense ratio, a qualified third-party expense ratio of at least 10%, or a third-party prepared profit and loss statement. The personal path uses eligible deposits and supporting business statements. Transfers, non-business deposits and inconsistent activity need review; total bank deposits are not automatically qualifying income.
Prepare a complete history
Provide every page, identify the source of deposits and explain account transfers or material changes in the business. The 12- and 24-month options use the applicable Prime Time standard/bank-statement/1099 matrix. Property, occupancy, loan size, credit and state overlays determine the final leverage.
