Bank statement loans are one of the most powerful financing tools for real estate investors with non-traditional or LLC-based income. If you're self-employed, earn through an entity, or write off a significant portion of your income for tax reasons, this guide is for you.
What Is a Bank Statement Loan?
A bank statement loan allows borrowers to qualify based on 12–24 months of business or personal bank statements, rather than W-2s, pay stubs, or tax returns. This is a form of non-QM (non-qualified mortgage) loan designed specifically for self-employed borrowers, including LLC owners, sole proprietors, freelancers, and entrepreneurs.
These loans are a game-changer for real estate investors who:
- Run their rental portfolio through an LLC
- Have write-offs that reduce reported taxable income
- Can demonstrate strong cash flow through bank deposits
Have complex income but strong cash flow? Get matched with a lender who offers bank statement loans
How to Qualify for a Bank Statement Loan Using LLC Income
1. Have 12–24 Months of Bank Statements
To verify income, lenders will average your monthly deposits over a 12–24 month period. These can be:
