Qualify on your deposits, not your tax returns.
Self-employed borrowers rarely look their best on a tax return. The write-offs that lower your taxable income also shrink the income a traditional lender will count. A bank statement loan from Abo Capital fixes that by qualifying you on the deposits flowing into your accounts — not your adjusted gross income — so the way you save on taxes doesn’t cost you the home you want.
Bank statement loans terms at a glance
90%
maximum LTV
$20M
maximum loan amount
12–24 mo
bank statements, not tax returns
No tax returns
W-2s not required
Low-600s
minimum credit score
Self-employed
built for business owners
All figures shown are maximums, with exceptions considered case-by-case. Final terms are quoted per deal and depend on your credit, the property, and the program that fits your file.
A self-employed home loan built around real cash flow
If you own a business, work on 1099, freelance, or earn on commission, getting a mortgage when self-employed can feel like a maze of tax math. A bank statement mortgage replaces tax returns with 12 or 24 months of personal or business bank statements, giving a clear picture of what you actually earn. It’s a leading option for borrowers who’ve been told they don’t make enough “on paper.”
How a bank statement loan works
Instead of W-2s and filed returns, qualifying income is built by averaging the deposits across your bank statements. This is a no-income-verification approach in the traditional tax-return sense — but it’s fully documented through your real banking activity, so it satisfies ability-to-repay requirements while fitting how self-employed people are actually paid.
Program highlights
- Up to 90% financing on a purchase — as little as 10% down; cash-out refinancing also available
- Loan amounts up to $20,000,000 — from first homes to high-value and luxury properties
- Credit from the low-600s — you don’t need perfect credit; the best terms start around 680
- Qualify with 12 or 24 months of personal or business bank statements — no tax returns, no W-2s
- Higher existing debt is OK — we can work with more monthly debt than most banks allow (debt-to-income up to ~55%)
- Buy or refinance a primary home, second home, or investment property
All figures shown are maximums. Actual terms depend on your complete profile and are quoted per scenario.
Who a bank statement loan is for
- Self-employed business owners and sole proprietors
- 1099 contractors, gig workers, and freelancers
- Commission-based and seasonal earners
- Entrepreneurs and investors with strong cash flow but heavy write-offs
- Real estate investors qualifying on personal or business cash flow
No tax returns required — a quick soft credit check is all it takes to get started.
Already been quoted somewhere else? Self-employed borrowers are routinely set up on tax returns when their deposits would qualify them for materially more. The program gets picked before anyone reads the file. Why the loan you were quoted isn’t the loan you have to close →
What the expense factor does to your income
Two self-employed borrowers can hand over identical bank statements and qualify for very different loan amounts. The variable is the expense factor — an assumed percentage of your deposits treated as the cost of running your business. Whatever’s left after that percentage is your qualifying income.
The factor you end up with depends on which statements you use and what documentation comes with them:
| How you document | Expense factor applied |
|---|---|
| Personal bank statements (plus two months of business statements) | None — 100% of eligible deposits count |
| 1099 income | Fixed, as low as 10% |
| Business statements with a CPA, EA or licensed tax preparer letter or P&L | As low as 10%, depending on program |
| Business statements, business-type schedule | As low as 20% for a service business with no employees |
| Business statements, standard treatment | 50% — applied by default when nothing else is provided |
On $50,000 a month of deposits, that range is the difference between roughly $25,000 and $50,000 of qualifying income — on the same business, in the same month.
The 50% standard treatment is not a penalty. It’s simply the figure used when nobody has documented anything more specific. Which is why the documentation decision belongs at the start of the file, not after underwriting has already run the numbers.
How lenders calculate income on a bank statement loan → walks through the full deposit math: which deposits get excluded, how ownership percentage scales the total, and how to choose between 12 and 24 months.
Leverage, credit and reserves
| Up to | |
|---|---|
| Purchase | 90% LTV |
| Rate-and-term refinance | 85% LTV |
| Cash-out refinance | 80% LTV |
| Loan amount | $4,000,000 standard; $20,000,000 on select portfolio scenarios |
| Credit score | from the low 600s; best leverage and pricing at 680+ |
| DTI | considered to roughly 55% on select programs |
| Documentation | 12 or 24 months, personal or business statements |
| Occupancy | primary residence, second home, investment property |
| Structures | 30- and 40-year fixed, ARM, and interest-only on select programs |
Reserve requirements scale with leverage and loan size — commonly 3 months of PITIA at or below 80% LTV, rising to 6, 9 or 12 months at higher LTV or larger loan amounts. On a cash-out refinance, the proceeds can usually satisfy the requirement.
Every figure above is a maximum. They don’t all stack on a single file, and what’s available to you depends on the full picture.
What tends to cause problems
A few things derail otherwise strong self-employed files, and all of them are easier to handle before an application than after:
- Co-mingled accounts. If business revenue and expenses both run through a personal account, that account is treated as a business account — expense factor and all.
- Large or unexplained deposits. A deposit meaningfully larger than your typical month has to be sourced. Sourced is fine; unexplained gets excluded.
- Recent overdrafts. Some programs cap NSF activity in the months before application. If there’s a recent cluster, it’s worth knowing early.
- A declining deposit trend. Not disqualifying, but it generally requires a written explanation of what changed.
Bank statement loan FAQs
How do I get a mortgage when I’m self-employed?
Most self-employed borrowers qualify through a bank statement loan, which uses 12 or 24 months of bank deposits to document income instead of tax returns. Business owners, contractors, and freelancers can qualify on the income they actually earn rather than their write-off-reduced taxable income.
Can a self-employed person get a mortgage without tax returns?
Yes. A bank statement loan replaces tax returns with bank statements as proof of income, so you can finance a home without providing W-2s or filed returns.
Do lenders use gross or net income for self-employed borrowers?
On a bank statement loan, qualifying income is based on the deposits in your bank statements — adjusted for an expense factor where required — not the net income shown on your tax returns.
How many months of bank statements do I need?
Typically 12 or 24 months of personal or business bank statements, depending on the program and your profile.
What credit score do I need for a bank statement loan?
Programs are available with credit scores starting in the low-600s, with the strongest pricing and highest leverage generally available at 680 and above.
How much can a self-employed borrower typically qualify for?
Loan amounts depend on documented cash flow, credit, down payment, and the property, with options available up to several million dollars for strong profiles. Each file is structured around the borrower’s actual numbers, so the qualifying amount reflects real income rather than a one-size-fits-all formula.
Ready to see what you qualify for?