Bank Statement Deposit Only Mortgage

Bank Statement Deposit Only Mortgage For Self-Employed Borrowers

Gustan Cho Associates are mortgage brokers licensed in 48 states

This blog will discuss and cover bank statement deposit only mortgage for self-employed borrowers with no income tax returns required. Since the real estate crash 2008, the United States Federal Government stepped in to create mortgage guidelines and standards.

One added rule required income calculations used for borrowers, including self-employed borrowers. This is part of the ABILITY TO REPAY ACT. The write-offs you take may lower your mortgage qualifications depending on how you file your taxes. We receive calls almost daily from self-employed borrowers who find it difficult to qualify for the home they want to buy.

What is Bank Statement for Loan?

YouTube player

When you’re applying for a loan, providing a bank statement is important. This document shows your financial activities and account balances during a specific period. Lenders typically require bank statements as part of the loan application process to verify various aspects of your financial health and eligibility for the loan. Here’s what a bank statement for a loan typically includes:

  1. Transaction History: Bank statements record all deposits, withdrawals, transfers, and other transactions made to and from your account during the statement period. This history gives lenders insight into your financial activities and how you manage your money.
  2. Account Balances: When reviewing your bank statements, lenders analyze your financial stability and the availability of funds for expenses such as down payments and closing costs. The statement period’s beginning and ending balances and daily balances throughout the period provide lenders with this information.
  3. Income Verification: Lenders analyze your bank statements to verify your income. They look for regular deposits that correspond to your salary, wages, bonuses, or other sources of income declared on your loan application.
  4. Asset Verification: Bank statements also serve to verify your assets. Lenders review your savings, investments, and other liquid assets shown in the statements to determine your financial resources and ability to cover loan-related expenses.
  5. Financial Behavior: By examining your bank statements, lenders assess your financial responsibility and risk level as a borrower. The statements reveal your spending patterns, recurring expenses, bill payments, and potential red flags such as overdrafts or returned payments.

A bank statement for a loan is a critical document that provides lenders with a comprehensive view of your financial situation, income sources, asset holdings, and financial management practices, helping them evaluate your creditworthiness and make informed decisions regarding your loan application. Click here to apply for bank statement loan

Bank Statement Deposit Only Mortgage With No Income Tax Returns Required

Filing tax returns as a self-employed borrower can be a catch-22. If you do not take write-offs, you owe more in income taxes. If you don’t take write-offs, you will qualify for less when applying for a mortgage. You may want to utilize a bench statement loan if you cannot qualify for the property you’re looking for based on your income taxes.

The bank statement deposit only mortgage is a great alternative and does not require your federal income tax returns. Tax returns are NOT part of the transaction. Your income will be calculated from your bank statements.

The Underwriter will count all business-related deposits and typically use 50% of that number as your monthly income. They will either use a 12 or 24 months average, depending on your credit score and type of bank statement, business or personal.

Do Mortgage Lenders Need All Bank Statements?

Mortgage lenders typically require bank statements as part of the documentation for a mortgage application. These statements serve several key purposes in the loan approval process:

  1. They are used to verify your income, especially if you have non-traditional income sources or are self-employed. Lenders analyze the consistency of deposits to ensure they align with the income you’ve stated in your application.
  2. Bank statements are crucial for asset verification. They provide a detailed view of your savings, investments, and other accounts that can be used for down payment, closing costs, or reserves.
  3. Lenders review bank statements to assess your financial stability and behavior.

They look for patterns in your spending habits, recurring expenses, and potential red flags such as overdrafts or bounced checks. This information helps lenders gauge your ability to manage your finances responsibly. Bank statements also play a role in fraud prevention, allowing lenders to detect any discrepancies or irregularities in your financial history.

Overall, providing complete and accurate bank statements is essential to facilitating the mortgage approval process smoothly.

Key Features Of The Bank Statement Deposit Only Mortgage Program

Key features of the bank statement loan:

  • Available with credit scores as low as 600
  • As low as a 10% down payment permitted
  • Competitive rates – call for an exact quote from a licensed loan officer
  • No reserve requirement (depending on credit score)
  • 30-year fixed or adjustable rates mortgages available
  • The minimum loan amount is $150,000 (exceptions sometimes granted)
  • One late mortgage payment allowed in the past 12 months (NO late rolling payments)

Starting The Application Process of Bank Statement Deposit Only Mortgage

How to apply for a bank statement loan: Applying for a bank statement deposit only mortgage is similar to applying for your everyday mortgage product. You will complete the same application so your loan officer can verify your credit report. From there, you will send in the last 12 or 24 months’ bank statements (all pages)– to source down payment and calculate income and a copy of the front and back of your diver’s License and social security card.

Dustin Dumestre of Gustan Chh Associates explains how the bank statement deposit only mortgage works:

Borrowers should not turn in their income tax returns if they are applying for bank statement deposit only mortgage. The past 12 months of bank statement deposits only is averaged and used as income. Withdrawals do not count nor matter.

Once you have completed the application and sent in the documentation, an underwriter will calculate your income based on your bank statements. This is a great tool, so there is no question about what you qualify for. Your income calculator will be signed off by the underwriter, who will eventually underwrite your loan.

As you can see, way less documentation is needed for a bank statement deposit only mortgage. Click here to start the application process of bank statement deposit only mortgage

One-Year Tax Return Mortgage Program

Bank Statement Deposit Only Mortgage

Gustan Cho Associates also has a one-year tax return program for self-employed borrowers. This will calculate your income based on ONE year of IRS tax returns, unlike your conventional guidelines where you need a two-year average. Your business must be active for at least two years, but they will calculate your income based on your most recent year of tax returns.

This is a great opportunity for newer businesses or newly profitable businesses. For more details on this program, please get in touch with us at Gustan Cho Associates at 800-900-8569 or text us for a faster response. You can email us at

Bank Statement Deposit Only Mortgage Versus Other Loan Programs Available

Gustan Cho Associates are constantly expanding the loan programs we have available. Our self-employed clientele can find it nearly impossible to qualify for a mortgage. This is why we offer bank statements and one-year tax return mortgage loans. These are great alternatives to help you start building equity in a property and stop making your landlord rich. We have numerous different investors who offer bank statement mortgage loans. This allows us to be competitive in the market.

Home Purchase And Refinance Mortgage Programs

We also want to make our self-employed borrowers know bank statement loans are available for refinance transactions. You can use a bank statement loan for cash-out refinances with a minimum credit score of 620. Credit scores between 620 and 679 are capped at 80% loan-to-value for cash-out refinancing. With a credit score above 680, you can go up to 85% loan to value. This is important considering Conventional and FHA mortgage guidelines have recently lowered their Cash-out refinance limits to 80% loan to value.

Qualifying With A National Lender With No Overlays

Gustan Cho Associates offer mortgage loans without additional LENDER OVERLAYS. This can help more clients get into CONVENTIONAL, USDA, FHA, and VA mortgages. About 75% of our clients have been turned down by their current lender or are dealing with an experienced loan officer.

Gustan Cho Associates are commercial and residential mortgage lenders licensed in 48 states, including Washington, DC, Puerto Rico, and the United State Virgin Islands. Over 80% of our borrowers are folks who either got a last-minute mortgage loan denial or could not qualify at other lenders due to their lender overlays.

Gustan Cho Associates offer more mortgage products than most lending institutions, including our bank statement deposit only mortgage. If you’re having trouble qualifying for a mortgage, please call us. We will put you on a financial plan to qualify soon.

To set up a one-on-one mortgage consultation, please contact Gustan Cho Associates at 800-900-8569. Text us for a faster response. Or email us at  The team at Gustan Cho Associates is available seven days a week, including holidays, to help you with your financing goals. The team at Gustan Cho Associates looks forward to helping you and your family achieve homeownership. Qualify with national lender with no overlays

FAQ: Bank Statement Deposit Only Mortgage For Self-Employed Borrowers

1. What is a bank statement deposit-only mortgage for self-employed borrowers? A mortgage calculates income based on bank deposits, not tax returns, helping self-employed individuals qualify.

2. Why do self-employed borrowers struggle to qualify for traditional mortgages? Their write-offs can lower income on tax returns, affecting mortgage qualifications.

3. How does the bank statement deposit-only mortgage work? It uses bank deposits to calculate income, usually 50% of business-related deposits over 12-24 months.

4. What are the key features of the bank statement deposit-only mortgage program? Low credit score requirements, as little as 10% down payment, competitive rates, and flexible loan terms.

5. What documentation is required for a bank statement deposit-only mortgage application? Bank statements for 12-24 months (all pages), ID documents, and standard loan application materials.

6. How does the bank statement deposit-only mortgage compare to other loan programs? It’s a great alternative for self-employed borrowers with flexible income calculations.

7. What is the process for starting the application for a bank statement deposit-only mortgage? Complete the loan application, provide bank statements and ID, and let the underwriter calculate income.

8. How can self-employed borrowers qualify for a mortgage without lender overlays? Gustan Cho Associates offers mortgages without additional lender requirements, simplifying the process.

9. What other mortgage programs are available for self-employed borrowers? One-year tax return programs are available, calculating income based on recent tax returns.

This blog about Bank Statement Deposit Only Mortgage For Self-Employed Borrowers was updated on April 9th, 2024.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *