Bank Statement Loans
Bank Statement Loans for Self Employed Borrowers in Delaware and Pennsylvania
Good accounting and easy mortgage qualifying pull in opposite directions. Every legitimate write off that lowers your tax bill also lowers the income a conventional underwriter is allowed to use.
A bank statement loan replaces tax returns with deposit history. Instead of reading a Schedule C net figure, the underwriter reviews twelve or twenty four months of business or personal account statements, adds up qualifying deposits, strips out transfers and one time items, then applies an expense factor to arrive at usable monthly income. That number drives the debt to income calculation the same way a pay stub would. No W2s, no returns, no transcripts. These loans are held by portfolio investors rather than sold to Fannie Mae, so guidelines vary considerably between them: some accept a CPA prepared profit and loss to justify a lower expense factor, some allow co mingled accounts, some require a business license verification. For contractors, restaurant owners, real estate agents, and consultants across Delaware and Pennsylvania, this is often the only structure that reflects what the business actually earns.
Who it's for
- Business owners with at least two years of self employment and steady deposit activity
- Borrowers whose write offs shrink net income far below what the household actually lives on
- 1099 contractors and commission earners whose returns understate current earnings
- Buyers who can put roughly 10% to 20% down, since these programs price on equity
- Delaware and Pennsylvania investors and second home buyers who want documentation kept simple
Why choose this loan type
- Qualifying income reflects cash flow rather than a tax optimized bottom line, which is usually a dramatic difference
- No amended returns and no waiting on IRS transcripts, so the timeline stays inside a normal purchase contract
- You keep taking every deduction you are entitled to instead of restructuring your books around a mortgage
- Available on primary homes, second homes, and investment property, which agency self employed guidelines make far harder
Frequently asked
How many months of statements do lenders want to see?+
Twelve is the common request and twenty four gets the sharpest pricing. Some investors will work from twelve months of business accounts only, others want personal accounts, and a few blend both. The deposits need to look consistent, so a single enormous month surrounded by quiet ones invites questions rather than approval.
Why do lenders only count part of my deposits?+
Because gross deposits are revenue, not income. Investors apply an expense factor, often around 50%, and treat the remainder as qualifying income. If your actual expense ratio is lower, a CPA letter documenting it can raise the percentage they use, which directly raises the loan amount you qualify for.
Is the rate much higher than a conventional loan?+
Somewhat higher, yes, because the file is not sold to an agency. The comparison that matters is not bank statement versus conventional, it is bank statement versus not buying at all. Many self employed borrowers refinance into conventional financing two or three years later once tax returns show the income more favorably.
Start a bank statement file
Send twelve months of statements and a note on how the business operates. We'll calculate the qualifying income before you spend a dollar on anything.
Related loan programs
- Conventional loans as the eventual refinance
Two strong tax years later, moving into agency pricing often lowers the payment meaningfully.
- Jumbo options with alternative documentation
Several jumbo investors accept bank statement income at higher balances with added reserves.
Contact
Talk to Our Team Directly
No call centers, no runaround. Reach out and get real answers on what you qualify for before you fall in love with a house.
Phone
302-600-3197Hours
Mon–Fri 9am–6pm · Sat by appointment
Serving
Delaware · Pennsylvania · Maryland · New Jersey