Bank Statement Loans in Colorado
You're smart about taxes, so your returns don't show what you actually earn. Bank statement programs use your real deposits to qualify you.
If you own a business and you've been told you don't make enough to qualify for a mortgage, the problem isn't your income. It's how traditional lenders measure it. Your CPA does a great job minimizing your tax liability, but that adjusted gross income number on your tax return doesn't reflect your actual earning power. Bank statement loans fix that by looking at 12 to 24 months of deposits flowing into your accounts. This is one of my core specialties, and I work with self-employed borrowers on these loans all the time.
How It Works
No Tax Returns
Qualify using 12 to 24 months of personal or business bank statements instead of tax returns. Your deposits tell the real story.
Personal or Business Statements
You can use either personal or business bank statements depending on which better represents your income.
Multiple Business Entities
If you run more than one business, deposits from multiple accounts can be considered.
Flexible Credit
Most programs start at a 620 credit score, though better scores get you better terms.
Primary and Second Homes
Bank statement loans aren't just for primary residences. Second home and investment property options are available too.
Up to $3M+ Loan Amounts
Higher loan amounts are available for qualified borrowers, making this viable for higher-end purchases.
Who Is This For?
Common Questions
How do lenders calculate income from bank statements?
For personal statements, they typically look at total deposits. For business statements, they apply an expense factor (usually 50% unless you can document otherwise) to estimate your net income from those deposits.
What's the minimum down payment?
Most bank statement programs require 10% or more down. The exact amount depends on your credit score, loan amount, and whether it's a primary residence or investment property.
Are the rates higher than conventional?
Yes, typically by 0.5% to 1.5% compared to a conventional loan. But you're getting access to financing that conventional guidelines wouldn't give you, which makes it worthwhile for most borrowers.
Can I use this if I also have W-2 income?
If you have W-2 income, a conventional loan might work for you. But if you have both W-2 and self-employment income and the self-employment portion is significant, bank statement programs can sometimes get you a better result. Let's look at your specific situation.
Ready to talk about your options?
Pick a time on my calendar or give me a call. No pressure, just a straight conversation about what's possible for your situation.