Washington State Bank Statement Loans

Get a Mortgage Using Your Bank Statements

If you’re looking to buy a home or invest in property in Washington but you don’t have a traditional employment history or pay stubs like a W2, what can you do? A bank statement loan is one of many ways that you can be approved to get a loan for a home or an investment property.

What Is a Bank Statement Loan?

A bank statement loan is an alternative financing method that allows buyers who do not have traditional income documentation to be able to document their income using bank statements and other assets. It’s ideal for those who are self-employed, for those who work on commissions and those who fall outside the traditional scope of salary work that comes with a W2.

How Does a Bank Statement Loan Work?

Normally when applying for a mortgage, a bank gauges a buyer’s ability to repay a loan based on their income. With a bank statement loan, the last 12-24 months prior to the application is used to do what W2s or other documentation normally would.

It’s entirely possible that a bank statement loan can help creditworthy borrowers who may not qualify for other types of loans get a loan for their home. In addition, bank statement loans require less documentation than traditional loans.

It’s more common for instance, in the case of a small business, to use the business’ income as a measurement rather than the business owner’s personal account. Having this type of flexibility is great and accommodates those who have separated their business and personal accounts, as well as those who have not, giving a great deal of adaptability to people who otherwise couldn’t qualify for a home loan.

Challenges for Bank Statement Loans

It may be a bit more tricky for the self-employed to get a mortgage simply because of the layers of documentation required to verify their income. If you’ve been a business owner for less than two years, for example, or you’re a worker in the gig economy and your income comes and goes, it might be challenging to get approved.

However, by the same token, there are many different options available to you, and at LBC Mortgage, we work with a large network of lenders that can help you get approved even if you don’t meet traditional standard income requirements.

Features and Requirements of a Bank Statement Loan in Washington

Before you get a bank statement loan in Washington, it’s important to understand the various features and requirements:

  • No tax returns required
  • Qualified based on Personal or business statements for the most recent 12 months
  • Loan amount up to $3 million
  • 10% Down payment with no mortgage insurance
  • Owner occupied, 2nd home, Investment Property
  • Interest Only Loan Options
  • 30-year fixed option available
  • Non-Perfect Credit OK
  • Gift Funds for Down Payment
  • W2 co-borrower ok, income and employment traditionally verified
  • Retirement income is usable with verification (1099, award letter, etc)


  1. 2 years of self-employment verified through CPA or business license
  2. Low number of NSF or O/Ds
  3. 12 month of mortgage or rental history
  4. 3 month reserves

How to Get a Bank Statement Loan In Washington

Getting a bank statement mortgage in Washington is simple. To get started, simply contact LBC Mortgage team and we can start the process for you as well as help you find homes for sale in the area that meet your criteria.

There are some requirements that you’ll have to meet in order to qualify for one of these loans, but they are easy to meet. You’ll need to have a steady source of income and a decent credit score in order to qualify for this type of loan. Most banks require that your credit score fall between 600-700 on the FICO scale. That means the majority of people who have bad credit will still be able to get approved for this type of loan.

Contact us today to learn more! We’ll take the time to answer any questions you may have about your next steps to getting a bank statement mortgage loan in Washington.