Self-Employed? Qualify for a Mortgage Using Bank Statements

At North American Savings Bank (NASB), a bank-statement loan is a mortgage that verifies income using bank statements instead of tax returns or W‑2s. Usually, a bank-statement mortgage allows self‑employed borrowers to qualify based on cash flow from deposits rather than taxable net income.

This option helps entrepreneurs and freelancers who claim legitimate write-offs while still demonstrating their ability to repay.

NASB’s Bank Statement Loan is designed for self-employed borrowers whose reported taxable income understates their actual earnings due to business deductions. These loans are typically ideal for small business owners, independent contractors, gig workers, and 1099 earners with consistent deposits.

If your deposits are steady but your adjusted gross income is low, this program might be a better fit than traditional underwriting.

NASB determines qualifying income by averaging deposits over 12 or 24 months and applying an expense factor—either standard or CPA-verified—to evaluate cash flow. Generally, lenders calculate a monthly average of verifiable deposits and deduct typical business expenses to determine qualifying income.

This emphasizes actual revenue trends instead of tax return net income.

NASB typically requires 12 consecutive months of bank statements from the same account; if the file improves, it may review 24 months of statements. Generally, bank statement programs require 12–24 months to stabilize and account for seasonal changes.

Your loan officer might recommend a 24-month term if deposits fluctuate seasonally.

NASB usually requires a minimum credit score of 700 for its Bank Statement Loan program. Across the market, alternative documentation mortgages often need higher credit scores than some traditional programs.

Higher scores can help secure better pricing and terms.

NASB offers bank statement loans with down payments as low as 10% when mortgage insurance is required, up to a maximum LTV of 90%. Generally, bank statement mortgages usually need a 10–20% down payment, depending on creditworthiness, loan amount, and risk factors.

Your specific requirement depends on file size and program settings.

NASB’s rates for bank statement loans are usually higher than conventional mortgages but remain competitive among non-QM options. Generally, alternative documentation loans are priced based on risk and complexity, so their rates tend to be higher than those of standard conforming mortgages.

Pricing considers credit, deposits, loan amount, property, and reserves.

The NASB generally requires a government-issued ID, a credit report, documentation of assets or reserves, and proof of business activity such as a business license or CPA letter. Typically, lenders request identity, credit, asset, and business verification to assess stability and repayment capacity.

Your checklist will be tailored to your scenario to keep underwriting efficient.

NASB offers bank statement loans for both home purchases and refinances, subject to eligibility and guidelines. In general, alternative documentation mortgages can be used for purchase or refinance when income can be verified through statements.

We’ll help you compare scenarios based on your goals and equity considerations.