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Alterntaive to Traditional Mortgages
Bank statement loans offer a smart alternative to traditional mortgages, especially for self-employed individuals, freelancers, and business owners. At LBC Mortgage, we specialize in helping clients who may not qualify under standard income documentation but have strong financial profiles. Our expertise, personalized service, and wide network of lenders make us the ideal partner for securing a bank statement loan.
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What Is a Bank Statement Mortgage Loan?
A bank statement loan is a type of non-qualified mortgage (non-QM) designed for borrowers who can’t provide W-2s or tax returns to verify income. Instead, we use personal or business bank statements—typically over 12 to 24 months—to assess income stability and qualify the borrower.
This loan type is especially helpful for:
- Business owners who write off significant expenses
- Freelancers or independent contractors
- Gig economy workers
- Real estate investors with fluctuating income
We work with lenders who accept a variety of documentation formats and evaluate overall financial health rather than just taxable income.
Why Choose LBC Mortgage for Bank Statement Loans?
Securing a bank statement loan requires experience, flexibility, and access to lenders who understand the needs of non-traditional borrowers. We bring all of that and more.
We simplify the process by analyzing your bank statements upfront and advising how to present your income in the best light. Our strong relationships with non-QM lenders mean we can often get better terms and faster approvals than big banks or online lenders.
You’ll also work with a dedicated loan officer who understands self-employed income structures. We tailor each application to match lender requirements—ensuring that your financial picture is accurate, consistent, and compelling.
How Bank Statement Loans Work
Instead of relying on tax documents, we calculate income based on deposits shown in your bank statements. For personal accounts, lenders usually use 100% of qualifying deposits. For business accounts, they may apply an expense factor—commonly 50%—unless CPA-prepared documentation justifies a different ratio.
Here’s how we streamline the process:
We start with a full review of your 12–24 months of bank statements to calculate your average monthly income. Then, we select the best lenders based on your industry and income structure. We help you prepare supporting documents such as letters of explanation, profit and loss statements, and CPA letters when required. Once everything is aligned, we submit a clean, accurate file to the lender for approval.
Advantages of Bank Statement Loans
Traditional mortgages are built for salaried employees with predictable paychecks. That’s not how many of our clients earn. Bank statement loans offer flexibility that suits real-life income patterns without sacrificing buying power.
With a bank statement loan from LBC Mortgage, you benefit from:
No need for tax returns—your income is judged based on real deposits, not what’s left after deductions. Strong cash flow can lead to higher loan amounts and more purchasing power. You don’t need a conventional job—just a steady income history. We also finance a wide range of properties, including primary homes, second homes, and investment properties.
Our lenders look beyond the traditional credit box. We match you with the loan program that fits your income style, credit profile, and property goals.
Who Qualifies for a Bank Statement Loan?
To qualify, borrowers typically need at least two years of self-employment and a consistent deposit history shown in 12–24 months of bank statements. A minimum credit score of 620 is usually required, although higher scores improve your options. A down payment is also needed—usually between 10% and 20%, depending on the loan amount and your credit.
We review your full financial profile to find the best fit. If you’ve recently transitioned to self-employment or were turned down elsewhere, we still may be able to help. Our approval process considers the bigger picture, not just a narrow set of guidelines.
Bank Statement Loan vs. Traditional Mortgage
Bank statement loans and traditional mortgages differ in several key ways. Income verification for bank statement loans relies on actual bank deposits, while traditional loans require W-2s and tax returns. This makes bank statement loans ideal for self-employed individuals and freelancers, whereas traditional loans are typically designed for salaried workers with consistent paychecks.
Flexibility is another major distinction. Bank statement loans offer high flexibility, allowing for manual and adaptable underwriting. In contrast, traditional mortgages follow a strict, automated approval process with less room for nuance.
Self-employed borrowers often face challenges with traditional loans because tax write-offs can significantly reduce their reported income. At LBC Mortgage, we use bank statement loans to show your true earning power by focusing on the money coming in—not what’s deducted. This approach gives our clients a real chance at homeownership, even when their tax returns don’t tell the whole story.
Common Myths About Bank Statement Loans
Many clients come to us believing that bank statement loans are too complex or too expensive. The truth is very different.
Some think these loans are only for high-income borrowers, but that’s not the case. We help a wide range of clients—from small business owners to gig workers—who simply need a different path to home financing.
Another misconception is that interest rates are unreasonably high. While rates can be slightly above conventional loans, they’re competitive, especially considering the flexibility you gain. And thanks to our lender relationships, we’re often able to secure below-market rates within the non-QM space.
It’s also a myth that bank statement loans are difficult to qualify for. With the right guidance and documentation—which we help you prepare—the process is more straightforward than most people expect.
Why Timing Matters
Real estate markets in the US are competitive. If you’re self-employed and trying to buy or refinance, waiting for tax season to adjust your returns can cost you opportunities.
Bank statement loans allow you to act now. We get your file ready quickly, so you can make strong offers or lock in rates without delay. Whether you’re buying a new home, investing in property, or refinancing for better terms, we move fast to get results.
Start With a Free Consultation
At LBC Mortgage, we don’t just offer bank statement loans—we specialize in them. Our team understands the complexity of self-employed income and how to turn that into a winning mortgage application. You’ll get personalized support from day one, clear guidance, and access to exclusive programs that many brokers can’t offer.
We take the time to understand your business, your goals, and your financial story. Then we craft a loan strategy that works.
If you’re self-employed and want a mortgage without the tax return hassle, talk to us today. We’re here to make homeownership easier—for every kind of earner.