Bank Statement Loan
Our Bank Statement mortgage program offers a flexible mortgage solution for self-employed borrowers, allowing qualification based on personal or business bank statements—no tax returns or pay stubs are required.
Key Features
No tax returns required
As low as 10% down payment
Great option for self-employed borrowers
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A Bank Statement Loan may be the solution for self-employed borrowers
A Bank Statement Loan from North American Savings Bank (NASB) is a flexible mortgage option for self-employed individuals and others with non-traditional income sources. Unlike conventional loans, it doesn't require tax returns or pay stubs. Instead, your income is evaluated using bank statements from the past 12 months.
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What type of mortgage loan are you looking for?
Video - What is a Bank Statement Loan
Watch this video to find out how self-employed workers can use bank statements to get a mortgage loan instead of tax returns or pay stubs
This loan is ideal for borrowers who are:
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Advantages of a Bank Statement Loan from NASB:
- No W-2s or tax returns required
- 12 months of personal or business bank statements used to verify income
- As low as 10% down with mortgage insurance
- Competitive interest rates and customized terms
- Ideal for qualifying based on cash flow, not reported net income
- No prepayment penalties
- In-house underwriting, processing, and closing for a streamlined experience
- Personalized lending support from start to finish- we do not broker your loan
Bank Statement Loan Requirements
- Must provide 12 months of consecutive bank statements from the same account
- 10% down payment required with mortgage insurance
- Up to 90% max LTV
- 700 minimum credit score
- 50% maximum debt-to-income ratio
- $1,250,000 maximum loan amount, $175,000 minimum1
- Must escrow for taxes and insurance
- A minimum of 2 years self-employment or 1099 contract work with an exception can be made to 1-year self-employed if the same line of work prior
Bank Statement Loan FAQs
Program Basics
These questions explain how bank statement loans work and how NASB evaluates income and eligibility.
What is a bank statement loan?
A bank statement loan is a mortgage program that verifies income using bank statements instead of tax returns or W-2s. This allows self-employed borrowers to qualify based on actual cash flow rather than taxable income.
NASB’s Bank Statement Loan reviews 12–24 months of bank statements to calculate income based on deposits, allowable business expenses, and consistent revenue trends.
Who is a bank statement loan best suited for?
Bank statement loans are ideal for self-employed borrowers whose tax returns do not reflect their actual earnings.
NASB’s program works well for business owners, freelancers, contractors, gig workers, and 1099 earners who have steady deposits but significant write-offs.
How is income calculated for a bank statement loan?
Most lenders calculate income by averaging monthly deposits over a set period and subtracting an expense factor.
NASB analyzes 12 or 24 months of personal or business statements and applies standard or CPA-verified expense ratios to determine qualifying income.
How many monthly statements are required?
Lenders typically require 12 or 24 months of statements.
NASB accepts both 12-month and 24-month options based on credit strength, property type, and overall file quality.
Statement Types & Documentation
These questions cover which statements you can use and what paperwork lenders typically require.
Can I use personal or business bank statements?
Many programs allow either type, depending on the borrower.
NASB allows personal or business statements (but not both) as long as deposits can be tied to business activity.
Do bank statement loans require tax returns?
No. Bank statement loans verify income using bank statements rather than tax returns.
NASB does not require tax returns for qualification—bank statements are the primary income documentation.
What documents are required besides bank statements?
Lenders may request identification, a credit report, and proof of assets.
NASB typically requires:
• Government-issued ID
• 12–24 months of personal or business bank statements
• Business license or CPA letter
• Asset and reserve documentation
How does NASB calculate income for bank statement loans?
General calculations, average deposits, and applying an expense factor.
NASB uses:
• 12- or 24-month average deposits
• Standard or CPA-validated expense ratios
• Documentation of business ownership
Credit, Down Payment & Rates
NASB requires reserves based on credit, occupancy type, and loan amount. Your loan officer will outline the specific requirements.
These questions explain typical credit expectations, rate differences, and down payment guidelines.
What credit score do I need?
Minimums often range from the high 600s to the low 700s.
NASB’s Bank Statement Loan generally requires a minimum credit score of 700.
What kind of down payment is required?
Down payments usually range from 10% to 20%.
NASB offers down payments as low as 10% with required mortgage insurance.
Are interest rates higher on bank statement loans?
Yes. Rates are typically higher because income is verified using alternative documentation.
NASB’s rates vary based on credit score, deposit history, loan amount, and available reserves.
Are reserves required?
Most lenders require post-closing reserves.NASB requires reserves based on credit, occupancy type, and loan amount. Your loan officer will outline the specific requirements.
Borrower Eligibility
NASB requires reserves based on credit, occupancy type, and loan amount—your loan officer will outline the specific requirements.
These questions explain typical credit expectations, rate differences, and down payment guidelines.
What credit score do I need?
Minimums often range from the high 600s to the low 700s.
NASB’s Bank Statement Loan generally requires a minimum credit score of 700.
What kind of down payment is required?
Down payments usually range from 10% to 20%.
NASB offers down payments as low as 10% with required mortgage insurance.
Are interest rates higher on bank statement loans?
Yes. Rates are typically higher because income is verified using alternative documentation.
NASB’s rates vary based on credit score, deposit history, loan amount, and available reserves.
Are reserves required?
Most lenders require post-closing reserves.NASB requires reserves based on credit, occupancy type, and loan amount—your loan officer will outline the specific requirements.
Using a Bank Statement Loan (Purchase, Refi, Cash-Out)
These questions explain how the loan can be used for different types of transactions.
Can I purchase a home with a bank statement loan?
Yes. These programs support home purchases and refinances.
NASB offers both purchase and refinance options through its Bank Statement Loan program.
Can I refinance with a bank statement loan?
Yes, both rate-and-term and cash-out refinances are available.
NASB provides both options, depending on equity and qualifying factors.
Can I get a cash-out refinance using bank statements?
Many lenders allow cash-out options with sufficient equity.
NASB offers cash-out refinances subject to credit, LTV, and program guidelines.
How long does the approval process take?
Bank statement loans may take slightly longer due to the review of bank statements.
NASB’s typical timeline is similar to standard loans—often 30 days or less, depending on complexity.
Income Patterns & Deposits
These questions help borrowers understand how different deposit patterns affect qualification.
Can I qualify if I have high business expenses?
Most lenders apply a standard expense factor to business deposits.
NASB may allow a CPA-verified expense ratio, which can improve qualifying income.
Can I qualify with inconsistent or fluctuating deposits?
Yes, if overall deposits show a stable revenue trend.
NASB reviews the full 12- or 24-month period to determine whether deposits support qualifying income.
Can I use merchant service deposits (Stripe, Square, PayPal)?
Yes, if they represent real revenue.
NASB accepts merchant service deposits as long as statements clearly show gross revenue and transfer patterns.
NASB-Specific Program Details
This section outlines key program limits and features unique to NASB.
What is the maximum loan amount NASB offers?
NASB offers loan amounts up to $1,250,000 under its Bank Statement Loan program.
What is the minimum loan amount?
NASB requires a minimum loan amount of $175,000 for bank statement loans.
Exceptions may apply for properties within the Kansas City metro area—your loan officer can provide details.
What makes NASB’s Bank Statement Loan different?
Bank statement programs vary widely by lender.
NASB stands out by offering:
• Flexible 12- or 24-month statement options
• Competitive down payment requirements
• High loan amounts, including jumbo eligibility
• Options for 1099 earners and multi-business owners
• Second home financing
• Experienced underwriters who review each file individually
Can’t Find What You Need?
NASB offers additional non-QM loan products that may better suit your unique situation. Speak with one of our knowledgeable loan officers to discuss your unique circumstances and explore the mortgage solutions that best suit your needs.
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| Loan Type2 | Who is it for? | Min. Credit Score | Min. Loan Amount | Min. Down Payment |
|---|---|---|---|---|
| 1099 Loan | Self-employed individuals | 700 | $175,000 | 20%* |
| DSCR Loan | Real estate investors | 700 | $175,000 | 25% |
| Asset Depletion Loan | Borrowers using liquid assets to qualify | 700 | $175,000 | 20%* |
| Jumbo Loan | Borrowers with home purchases above the conforming limit | 720 | $805,501 | 20% |
| Credit Event Loan | Helps individuals get a mortgage after credit event like bankruptcy | 620 | $175,000 | 30% |
*10% down payment with no mortgage insurance option available with 740 FICO. Talk to a NASB loan officer for more details.
1Bank Statement Loans require a minimum $175,000 loan amount (exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas), a minimum credit score of 700, and a 10% down payment with approved mortgage insurance. Contact a NASB Loan Officer for more details on the specific areas and/or zip codes excluded. Not available in New York state, the Chicago or Baltimore metropolitan areas, and not available in all locations or for all property types. Loans subject to underwriting and eligibility criteria, and other factors. Your loan officer will provide you with more information regarding Bank Statement loans and what may work best for your situation.
2Additional eligibility criteria for each loan product may exist. Visit nasb.com for more information on each loan product type. Loans are subject to underwriting and eligibility criteria, and other factors. Your loan officer will provide you with more information regarding a specific loan and what may work best for your situation. The 1099 Loan, DSCR Loan, and Credit Event Home Loan products are not available in New York, the Chicago or Baltimore metropolitan areas and not in all locations or for all property types. Contact a NASB Loan Officer for more details on product eligibility, specific areas and/or zip codes excluded.
