More and more Americans are leaving traditional employment to work for themselves. From freelancers and small business owners to consultants and gig workers, the rise of self-employment has created a large and fast-growing borrower segment.
But while these self-employed borrowers may have strong, stable income, they often face a common challenge when applying for a mortgage: their tax returns don’t tell the full story. A great alternative financing option? Bank Statement loans.
What Is a Bank Statement Loan?
A Bank Statement loan allows borrowers to qualify for a mortgage using 12 to 24 months of business or personal bank statements as proof of income. This Non-QM loan type is ideal for self employed borrowers who may not show consistent income on their tax returns due to write-offs, business expenses, or fluctuating monthly earnings.
Instead of verifying income through standard documentation like tax returns and pay stubs, lenders analyze average monthly deposits to determine qualifying income. It’s a flexible approach that reflects how many self employed clients actually manage their finances.
Why Traditional Loans Don’t Work for Many Self Employed Borrowers
Standard mortgage products are built for W-2 employees with predictable paychecks, clean tax returns, and minimal deductions. That model doesn’t work for many self employed borrowers, even if their businesses are doing well.
Common challenges include:
- Tax returns reduced by legal business deductions
- Income that fluctuates seasonally or month-to-month
- Lack of W-2s or traditional job history
- Multiple income sources spread across different accounts
- Ownership in businesses where they don’t take a regular salary
Because of this, otherwise qualified borrowers are often declined or offered less favorable terms through traditional channels.
Bank Statement loans solve this problem by providing an underwriting path that reflects real financial strength, not just what shows up on a 1040.
Who Benefits Most from Bank Statement Loans
Who are the wide range of self employed borrowers who fall outside the lines of conventional mortgage guidelines? This includes:
- Small business owners who reinvest heavily in their businesses and minimize taxable income
- Freelancers and independent contractors who don’t receive pay stubs or have variable income
- 1099 earners in fields like real estate, healthcare, sales, or consulting
- Gig economy workers with nontraditional income streams
- Entrepreneurs and startup founders without two full years of tax filings
- Real estate investors who report limited personal income but have consistent deposits
In short, if a borrower has strong, documented deposits (but doesn’t qualify for a full-doc loan), they’re likely a fit for a Bank Statement loan program.
How LendSure’s Bank Statement Program Works
LendSure’s Bank Statement loan program is designed with the real-world needs of self employed borrowers in mind. The process is streamlined, the guidelines are flexible, and decisions are typically made within 24 hours.
LendSure’s Bank Statement loan program highlights:
- 12- and 24-month bank statement options
- Loan amounts up to $3,500,000
- Up to 90% LTV
- No tax returns or P&Ls required
- Business and personal bank statements accepted
- Multiple business accounts allowed
- Business expense ratios as low as 10%
- W-2 and bank statement combinations permitted
Every loan is reviewed with a common-sense approach. No one-size-fits-all formulas. No unnecessary delays. Just fast, thoughtful decisions based on real financials.
Why Bank Statement Loans Matter for Your Business
The number of self employed borrowers is only going up, and so is their buying power. According to the Bureau of Labor Statistics, nearly 17 million Americans were self-employed as of early 2024, making up about 10% of the workforce.
If you’re not offering loan options that serve this segment, you’re missing out on a significant share of the market. Bank statement loans allow you to provide financing solutions for creditworthy clients who simply don’t fit traditional underwriting boxes.
By offering flexible programs tailored to self employed borrowers, you can:
- Say yes more often
- Serve a wider range of clients
- Close more deals, faster
- Build long-term relationships with high-value borrowers
And with LendSure, you don’t have to figure it out on your own. Our team of Non-QM experts is ready to walk you through even the most complex borrower scenarios.
THE LENDSURE WAY
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers, ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently owned property.
Are you ready to benefit from a common-sense approach to lending? Contact us today to learn more about bank statement loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
