Bank Statement Loan for Self-employed Borrowers

Last updated on February 6th, 2024 at 07:07 pm

Mortgage lenders have substantially helped self-employed borrowers obtain financing by using the bank statement home loan. Approximately 8 years ago is when the bank statement loan became available and it has become the go-to loan product for business owners and self-employed borrowers ever since. Before that business owners were looking for stated income mortgage lenders to finance their home.

Colorado Bank Statement Loans

Since 2017, the bank statement mortgage loan has been one of the easiest loans for business owners in Colorado to qualify for and buy or refinance their primary home, second home or rental property.  For those wanting a mortgage without tax returns it used be a stated income loan but today those are restricted to only investment properties that receive rental income.  A big difference with the bank statement loan is the lender is actually verifying you have adequate income to qualify for a home loan but without W-2s, 1099s, or tax returns.

You will need to show proof of self-employment using any of the following: filing of fictitious business name, LLC, corporation, or LP with the Colorado secretary of state. Your business name should be valid and dated two years before applying for a mortgage.

Bank Statement Loan Program Highlights

• No Tax Returns – No Tax Transcripts
• 6, 12 or 24 months Personal Bank Statements
• 24 Months Business Bank Statements
• Income is calculated using average of bank deposits that are job related
• Up to 100% of deposits allowed using personal statements
• Up to 90% of deposits using business statements with Tax Preparer letter
• Purchase a home with as little as 10% Down ⁽¹⁾ (90 LTV)
• Refinance your existing loan up to 90% of the home’s appraised value
• Cash Out Refinance up to 85% of your home’s appraised value
• Loan amounts from $200,000 up to $6 Million⁽²⁾
• Credit scores as low as 620
• Debt to Income Ratios up to 50%
• Add certain closing cost into loan for Purchase or Refinance
• Adjustable or Fixed Rates, and Interest Only Options Available
• Must be Self Employed for 2+ years

Questions about Bank Statement Loan Qualifying

Can I qualify with a co-borrower who is a W2 employee? Yes

Can I qualify with multiple bank accounts? Yes

Can I qualify with a tax lien? Yes. However, the lien must be paid before closing.

Can I qualify with a few large deposits in last 12 months?. Yes

We serve the entire state of Colorado which means we may be able to help you in these cities:
Denver
Boulder
Arvada
Centennial
Lakewood
Parker
Castle Rock
Westminster
Fort Collins
Colorado Springs
Ski resorts areas of Aspen, Vail, Breckenridge, Telluride

NEW – Bank statement home equity line of credit available. Check out the home equity page

If you have additional questions about how this loan program works, or how to get started, email William Cook by clicking here, or call 303-223-9843 direct.

1. 10% down maximum up to $2,000,000
2. Loans from $2,500,001 to $6,000,000 require down payments above 25%
Note: certain restrictions apply to this program such as maximum of 40 acres, no farms or commercial use, no tax liens.