Bank Statement Loans for Self-Employed Real Estate Investors: How to Qualify Without Tax Returns

For many self-employed real estate investors, qualifying for a traditional mortgage is a major roadblock. Tax write-offs, fluctuating income, and complex financial profiles often make it difficult to meet conventional loan guidelines. That’s where bank statement loans come in—a flexible financing option that lets you use your actual bank deposits to prove income, rather than W-2s or tax returns.

In this guide, we’ll cover everything you need to know about bank statement loans for real estate investors, including qualification criteria, the best programs for 2025, and how they differ from DSCR loans.

🏦 What Is a Bank Statement Loan?

A bank statement loan is a type of non-QM (non-qualified mortgage) that allows borrowers—particularly self-employed individuals—to verify income based on bank account deposits rather than traditional income documents.

Instead of submitting W-2s, pay stubs, or tax returns, you’ll submit 12–24 months of personal or business bank statements to demonstrate consistent cash flow.

👉 Learn more about how these programs work in our Bank Statement Loan Guide.

✅ Who Should Consider a Bank Statement Loan?

Bank statement loans are perfect for:

• Self-employed real estate investors
• 1099 contractors and freelancers
• House flippers and rehabbers
• Business owners with fluctuating income
• Landlords who reinvest rental cash flow into their business

If your tax returns show low income (due to write-offs) but your bank deposits reflect healthy earnings, a bank statement loan could be your ticket to financing.

🔗 Related: How DSCR Loans Differ from Bank Statement Loans

📋 Bank Statement Loan Requirements for Investors

While lenders vary, most bank statement loan programs require:

🏘️ How Does a Bank Statement Loan Work for Investors?

Here’s the typical process:

1. Gather Bank Statements: 12 or 24 months of business or personal bank statements.
2. Calculate Average Deposits: Lenders average monthly deposits over the selected time frame.
3. Apply an Expense Ratio: Business expenses are factored in (often 50–60% for sole proprietors, less for W-2 contractors).
4. Determine Qualifying Income: Net figure is used to calculate DTI.
5. Submit Standard Docs: Property appraisal, asset statements, ID verification, but no tax returns.

Example:

• 12 months of deposits = $240,000
• Average monthly deposits = $20,000
• Expense factor = 50%
• Qualifying income = $10,000/month

This income will then be used to determine your loan eligibility, just like W-2 income would be.

👉 Compare bank statement loan rates using our Loan Comparison Calculator.

🏆 Best Bank Statement Loan Programs for 2025 (Investor-Friendly)

1. Angel Oak Mortgage Solutions

• 12- or 24-month bank statement programs
• Up to 85% LTV
• Loans up to $3 million
• Investment property financing allowed

2. Acra Lending

• Flexible expense ratio adjustments (especially for LLC borrowers)
• Ideal for multi-property investors
• Up to 80% LTV for rental purchases

3. First National Bank of America (FNBA)

• 12-month personal or business statements
• No income tax returns needed
• Accepts foreign national borrowers

4. NewFi Lending

• 90% LTV with no mortgage insurance (owner-occupied, 80% investment)
• Bank statement programs plus DSCR combo loans available

5. Citadel Servicing (now Acra Lending)

• Specialized investor programs for rental properties
• Bank statement jumbo loans available

🧠 Key Differences: Bank Statement Loans vs. DSCR Loans

🔗 See if a DSCR Loan is a better fit for your next investment.

💡 Tips to Get Approved for a Bank Statement Loan

1. Keep Clean, Consistent Deposits: Avoid large unexplained transfers.
2. Separate Business & Personal Accounts: Makes underwriting smoother.
3. Have 3–6 Months of Reserves: Essential for larger investment loans.
4. Pre-Qualify Early: Underwriters have different expense assumptions; early estimates help planning.
5. Work with a Lender Familiar with Investors: Not all lenders understand rental property nuance.

📣 Final Thoughts

Bank statement loans are a game-changer for real estate investors who don’t fit into the “traditional borrower” box. If you’ve been turned down by a conventional lender—or simply want a faster, easier approval process—this type of financing could be the perfect fit.