No Tax Return Loans

If you’re self-employed, own a business, or work as a freelancer or independent contractor, you already know the frustration: your tax returns show far less income than you actually earn. Legitimate tax deductions reduce your taxable income — but they also reduce what a traditional lender sees. That’s why I offer bank statement loan programs and other alternative income documentation options that let you qualify based on what you actually deposit, not what the IRS sees. Some of the strongest borrowers I’ve met in 30+ years were self-employed people whose tax returns told the worst possible version of their story.

A Flexible Loan Option for Self-Employed Borrowers — Using 12 Months Bank Statements

Our bank statement programs use 12 or 24 months of personal or business bank statements to calculate qualifying income — no W-2s, no tax returns, no pay stubs required. This is especially valuable for:

• Self-employed business owners and entrepreneurs
• Independent contractors and gig economy workers
• Freelancers, consultants, and commission-based professionals
• Real estate investors with complex income structures
• Seasonal workers with irregular income patterns
• Borrowers with significant write-offs that reduce reported income

Bank Statement Loan Program Details

• 620+ FICO score required (options available for lower scores)
• Loan amounts up to $3.5 million
• Up to 90% LTV — no mortgage insurance required
• 12 or 24 months of personal or business bank statements
• Available for purchase and refinance
• Primary residence, second homes, and investment properties
• 4 distinct bank statement programs to match different borrower profiles

How Bank Statement Income Is Calculated

For personal bank statements, the lender typically averages 12-24 months of deposits as your qualifying income. For business bank statements, a standard expense factor (usually 50%) is applied to deposits to arrive at net income. Some programs allow a CPA-certified expense letter to use a lower expense ratio, which increases qualifying income for borrowers with low overhead.

A Real-World Central Indiana Example

Say a Fishers HVAC contractor’s business account averages $14,000 a month in deposits over 12 months. After legitimate write-offs, his tax return shows about $48,000 a year — $4,000 a month. A traditional lender sees $4,000. A bank statement program applies a 50% expense factor to those deposits and sees $7,000 a month in qualifying income — nearly double. That difference is often what separates “sorry, no” from keys in hand. (Numbers are illustrative; your scenario will differ.)

Other Alternative Income Documentation Options

Bank statement loans are one tool — but not the only one. Depending on your situation, other non-QM income documentation options may be available:

• Asset depletion loans — qualify using liquid assets (savings, investment accounts) as "income"
• P&L only loans — use a CPA-prepared profit & loss statement instead of tax returns
• 1099 income loans — for contractors who receive 1099s but don't file a full business return
• DSCR loans — for investment properties that qualify based on rental income alone

Frequently Asked Questions

Do I need to have been self-employed for two years?
Most bank statement programs require at least 2 years of self-employment history, typically verified via business license, CPA letter, or business bank account statements. Some programs allow 12 months for borrowers transitioning from W-2 employment in the same field.

Are interest rates higher on bank statement loans?
Generally yes — non-QM (non-qualified mortgage) loans carry slightly higher rates than conventional loans because they're held by the lender or sold to private investors rather than Fannie Mae/Freddie Mac. However, for self-employed borrowers who truly can't document enough income the traditional way, the rate premium is often worth it to get into the home they want.

Can I refinance with a bank statement loan?
Yes — rate/term and cash-out refinances are available. Many self-employed homeowners who purchased with a bank statement loan refinance into conventional financing once they have two years of strong tax returns that show sufficient income.

Can I combine bank-statement income with a co-borrower’s W-2 income?
On most programs, yes. It’s common for one spouse to be self-employed and the other on a W-2 — we can often blend both income types on one application to strengthen the file.

Self-employed and ready to buy? Call Greg Rank at (317) 603-0912 — or start your application online.

Related Resources

• All Loan Programs
• Current Mortgage Rates in Indiana
• Mortgage Calculator
• First-Time Homebuyer Programs
• Get Pre-Approved / Contact Greg