Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 · iQRATE Mortgages · Last updated: October 12, 2026
Quick answer
A bank statement loan is a mortgage for self-employed borrowers that calculates income from 12 or 24 months of personal or business bank statements instead of tax returns. The lender adds up eligible deposits, removes transfers and other non-income deposits, applies an expense factor to business accounts, and divides by the number of months. Example terms from our lenders (October 2026): primary, second home, or investment property; personal statements can count up to 100% of eligible deposits; business statements can use an expense factor as low as 10% with a CPA letter (50% without); purchase financing up to 90% LTV with a 700+ credit score (70% at 620); loans of $5 million or more; and generally 2 years of self-employment. It usually costs more than a conventional loan, so it's the right tool when your write-offs make your tax returns smaller than your business really is. iQRATE Mortgages shops each file across our lenders, more than 100 on complex deals.
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Are you self-employed, and have you minimized your taxable income with deductions? That's smart tax planning. It's also the most common reason Las Vegas business owners get turned down for a conventional mortgage. iQRATE Mortgages (NMLS 1862492) is a Las Vegas mortgage broker with access to more than 100 wholesale lenders. On a bank statement file, my job is to calculate your income the way each lender will, show you the number before you shop for a home, and match you to the lender whose rules fit your business.
Bank statement loan terms: examples from our lenders
These are examples from bank statement lenders we place loans with, as of October 2026:
- Statement period: 12 or 24 months. How lenders differ: each lender prices and calculates the two windows its own way.
- Account types: personal or business bank statements. How lenders differ: account-ownership and separation rules vary.
- Personal statements: up to 100% of eligible deposits can count as qualifying income, with no additional expense factor.
- Business statements: an expense factor as low as 10% with a CPA letter supporting the business's actual expenses. Without a CPA letter, the expense factor is 50%.
- Purchase loan-to-value by credit score: see the credit-score ladder below (70% at 620 up to 90% at 700+).
- Cash-out refinance: up to 80% LTV on an owner-occupied home and 75% on an investment property.
- Occupancy: primary residence, second home, and investment property are all allowed.
- Business ownership: at least 25% of the business, following Fannie Mae's definition of self-employment.
- Loan amounts: $5 million or more, with higher amounts considered by exception. There's no conforming-vs-jumbo split like conventional financing.
- Self-employment history: generally a minimum of 2 years.
- Combining income: bank statement income can be combined with W-2 income on the same loan, generally with a 2-year history for each source.
- NSFs (non-sufficient funds): some lenders allow 1 or 2 in a 12-month period; others allow none.
- Rate compared with conventional: about 0.5% higher, though it depends on the non-QM lender and the comparison isn't simple (see the FAQ on rates).
- Prepayment penalty on investment properties: 1 to 5 years, whichever you choose; the longer the prepay, the better the rate. A no-prepay option also exists.
- Typical time to close: about 30 days on a purchase.
Example terms from bank statement lenders we place loans with, as of October 2026. Not every lender offers every option. Terms change often and depend on credit, property, and lender approval. This is not a rate quote or a commitment to lend.
Credit score and down payment: the ladder
The higher your credit score, the higher the loan-to-value (LTV) you can get. Examples of purchase financing from our lenders (October 2026):
- 620 FICO: up to 70% LTV (30% down)
- 660 FICO: up to 80% LTV (20% down)
- 680 FICO: up to 85% LTV (15% down)
- 700+ FICO: up to 90% LTV (10% down)
Cash-out refinances go up to 80% LTV on an owner-occupied home and 75% on an investment property.
Loan size follows the same logic. Unlike conventional financing, bank statement programs don't split loans into conforming and jumbo the same way. Two examples from our lenders:
- A borrower with a 740+ FICO and 50% LTV may qualify for a $5 million loan.
- A borrower with a 660 FICO and 20% down may be limited to roughly $1.5 million.
Loans can reach $5 million or more, with higher amounts considered on an exception basis.
From David: "The stronger the borrower's overall profile, the greater the financing options and potential loan amount."
How we shop your bank statement loan
Bank statement loans aren't standardized like Fannie Mae or FHA loans. Each lender writes its own rules for expense factors, NSFs, deposit review, and loan size, so the same statements can produce a "no" from one lender and a strong approval from another.
How we do it:
- We review your statements first, before anything goes to a lender, and flag transfers, NSFs, and large deposits that need an explanation.
- We calculate your income the way each type of lender will: personal vs. business, 12 vs. 24 months, with and without a CPA letter.
- We send your scenario to lenders whose rules fit your file. On complex deals, we shop more than 100 lenders.
- We show you the trade-offs before you commit: down payment, loan amount, rate, and any prepayment penalty.
Our broker compensation is charged separately from the lender's rate. Ready to compare? Call (702) 766-3744 or apply online.
Who a bank statement loan is for (and who should skip it)
It usually fits:
- Business owners and sole proprietors whose write-offs shrink net income on Schedule C or a business return
- Home-based service businesses paid by Zelle, Venmo, or card, like the eyelash specialist in our case study below
- Independent contractors and consultants with steady deposits but uneven taxable income
- Commission earners who are self-employed, such as real estate agents
- Convention, event, and production vendors, a big group in the Las Vegas economy
- Growing businesses, where last year's tax return lags this year's revenue
- Self-employed buyers who need a large loan, since loans can reach $5 million or more
It's usually not the right loan if:
- Your tax returns already show enough income. A conventional or FHA loan will usually cost less, so we run that math first.
- You're a W-2 employee only, including tipped casino and restaurant staff. Your W-2 income usually qualifies you on a standard loan.
- You've been self-employed less than 2 years. Our lenders generally require a 2-year minimum.
- You're buying a rental and don't want your personal income involved at all. A DSCR loan qualifies on the property's rent instead (see the comparison below).
How lenders calculate income from bank statements
The method is similar across lenders. The details are what differ:
- Total the deposits for the 12 or 24 months.
- Remove deposits that aren't income: transfers between your own accounts, tax refunds, loan proceeds, refunds and reversals, and proceeds from selling equipment or a vehicle. Large or unusual deposits must be explained.
- Apply the expense treatment. Business accounts get an expense factor, as low as 10% with a CPA letter at our lenders. Personal accounts can count up to 100% of eligible deposits.
- Count your ownership share if you don't own 100% of the business. You need to own at least 25% of the business, following Fannie Mae, and partial owners generally count only their share.
- Divide by 12 or 24. That's your qualifying monthly income, which then goes into your debt-to-income ratio like any other income.
What the number is not: it's not your take-home pay or your accountant's profit figure. It's an underwriting number built from your deposits, and it can land above or below the number in your head.
Personal vs. business bank statements
This choice can change your qualifying income more than anything else on the file.
Personal bank statements
- Up to 100% of eligible deposits can count as qualifying income, with no additional expense factor, at our lenders.
- The logic: money that reaches your personal account has usually already paid the business's costs.
- The trade: the underwriter looks hard at which deposits are business income and which are transfers. Some lenders want everyone on a personal account to be on the loan.
- Best for: owners who pay themselves from the business, and sole proprietors whose clients pay them directly, like our eyelash specialist.
Business bank statements
- Lenders apply an expense factor to deposits, because revenue isn't profit.
- With a CPA letter supporting your actual expenses, the factor can be as low as 10% at our lenders, so 90% of eligible deposits count.
- Without a CPA letter, the expense factor is 50%, so half of eligible deposits count.
- Best for: businesses with low real expenses, such as consultants and service providers, that have a CPA who can document them.
Illustrative comparison (not a quote or offer). Suppose eligible deposits average $15,000 a month.
- Personal account, 100% counted: $15,000 × 100% = $15,000 a month qualifying income.
- Business account with a CPA letter at a 10% expense factor: $15,000 × 90% = $13,500 a month.
- Business account without a CPA letter, at a 50% expense factor: $15,000 × 50% = $7,500 a month.
That's why a CPA letter can be the single most valuable document on a business-statement file.
If you have both kinds of accounts, we run both and use the one that qualifies you best.
12 months or 24 months of statements?
Both are available at our lenders. The right choice is arithmetic, not preference:
- 12 months usually qualifies higher for a business that grew recently, because a slower earlier year isn't in the average. It's also less paperwork.
- 24 months can qualify higher when the earlier year was stronger, and it smooths out seasonal swings, which matters in a convention- and tourism-driven economy like Las Vegas.
- Pricing and terms can differ between the two windows by lender, so we compare both.
Illustrative example (not a quote or offer). A Las Vegas audiovisual contractor uses a personal account, counted at 100%. Eligible deposits were $216,000 in the most recent 12 months and $168,000 in the 12 months before that.
- 12 months: $216,000 ÷ 12 = $18,000 a month
- 24 months: ($216,000 + $168,000) ÷ 24 = $16,000 a month
Her business grew, so 12 months qualifies her for $2,000 a month more. Reverse the two years and 24 months wins.
Case study: the Las Vegas eyelash specialist
Real iQRATE client. A self-employed eyelash specialist in Las Vegas ran her business from home. Her business brought in consistent revenue, but her tax returns showed much lower net income because of the business expenses she claimed.
Instead of using her tax returns, we used 12 months of her personal bank statements, which showed regular Zelle payments from her clients. The lender calculated her qualifying income from those eligible deposits, and it came out substantially higher than her tax returns showed.
The lesson: for many self-employed borrowers, taxable income doesn't reflect real cash flow. If clients pay you directly into a personal account, personal statements counted at up to 100% of eligible deposits can be the strongest path.
Real iQRATE client scenario, anonymized. Past results don't guarantee future terms.
What kills a bank statement file (and how to avoid it)
Most bank statement denials come from a few avoidable problems:
- Transfers between accounts. Moving money from savings to checking, or from your business account to your personal account and back, isn't new income. Lenders remove these deposits, and if your real revenue is mixed in with transfers, your income can shrink fast.
- NSFs (non-sufficient funds). Lender rules vary. Some of our lenders allow 1 or 2 NSFs in a 12-month period; others have zero tolerance. A single bounced payment can rule out half the lenders.
- Large deposits with no paper trail. Expect to explain any deposit that doesn't look like normal client payments, with an invoice or a letter.
- Mixing personal and business money. A spouse's paycheck, roommate rent, and business revenue in one account make the calculation slow and the excluded pile big.
- Less than 2 years in business. Our lenders generally require at least 2 years of self-employment.
From David: "Properly reviewing and analyzing bank statements before submission can help identify these issues early and avoid unnecessary underwriting problems."
That's why we review your statements before any lender sees them. If you have NSFs, we send the file only to lenders that allow them.
Combining bank statement income with W-2 income
You don't have to choose one income type. Our lenders can combine them on the same loan:
- Two borrowers: one spouse qualifies on self-employment income calculated from bank statements, and the other qualifies on traditional W-2 income.
- One borrower with two jobs: a borrower who is self-employed and also works a separate W-2 job can use both.
- History: generally, each income source should have a 2-year history, subject to the lender's guidelines.
Combining incomes can raise your qualifying income, lower your debt-to-income ratio, and open up more lenders.
What Las Vegas self-employed buyers should know
- Run the conventional test first. In 2026, Clark County's one-unit limits are $541,287 for FHA (HUD) and $832,750 for a conforming loan (FHFA). If your tax returns support the payment inside those limits, a conventional or FHA loan is usually the cheaper file.
- Above $832,750 you're in jumbo territory on a conventional loan, with stricter rules. Bank statement programs at our lenders don't split loans that way, which helps self-employed buyers in Summerlin, Henderson, and other higher-priced areas.
- Seasonal income is normal here. Convention, event, tourism, and production businesses often have big and slow months. Twenty-four months of statements can smooth that out; twelve months can capture a strong recent run. We calculate both.
- Tipped and W-2 hospitality workers usually don't need this loan. If you're a W-2 employee at a casino or restaurant, your W-2 income usually qualifies on a standard loan. Bank statement loans are for self-employed income.
- Clients who pay by Zelle, Venmo, or card leave a clean deposit trail, which is exactly what a bank statement lender reads. Keep those payments in one account and don't mix in transfers.
- Licensed in four states. We're based at 6360 S Rainbow Blvd in southwest Las Vegas, and we also place bank statement loans in California, Texas, and Florida.
Bank statement vs. DSCR vs. conventional
Three ways a self-employed Las Vegas borrower can qualify:
Conventional (full documentation)
- Income proof: tax returns, usually 2 years, using net income after write-offs
- Property: primary home, second home, or investment property
- Cost: usually the lowest-cost option if your returns qualify you
- Size: in 2026, a one-unit conforming loan in Clark County tops out at $832,750 (FHFA); above that is jumbo
- Best for: self-employed borrowers whose tax returns already show enough income
Bank statement loan
- Income proof: 12 or 24 months of personal or business bank statements
- Property: primary home, second home, or investment property
- Cost: about 0.5% higher than conventional at our lenders, depending on the lender; investment properties can choose a 1–5 year prepay or none
- Size: loans of $5 million or more at our lenders, with no conforming/jumbo split
- Best for: self-employed borrowers with strong deposits and big write-offs
DSCR loan
- Income proof: none from you personally; the rental property qualifies on its rent compared with its monthly payment
- Property: non-owner-occupied investment property only; you can't live in it
- Cost: usually higher than conventional
- Best for: investors buying or refinancing rentals who want personal income out of the picture. See our DSCR loans in Las Vegas page.
Rule of thumb: buying a home to live in, and your returns don't qualify you? Look at a bank statement loan. Buying a rental? Compare DSCR and bank statement. If your returns already qualify you, conventional usually wins.
How to prepare for a bank statement loan: 7 steps
- Pick your account. Use the account where your income actually lands. If clients pay you personally, personal statements may count up to 100% of eligible deposits.
- Pull 12 or 24 consecutive months of statements, every page, for each account you'll use.
- Stop moving money between accounts for a few months before you apply, and label any transfers you do make.
- Avoid NSFs. Keep a cushion in the account; some lenders allow none.
- Document large deposits with invoices, contracts, or a short explanation letter.
- Ask your CPA for a letter supporting your business's actual expenses if you'll use business statements. It can lower the expense factor to as little as 10%.
- Send everything to us for a pre-review before you make an offer. We calculate your income, check it against lender rules, and shop the file.
Timeline: gathering statements and the CPA letter usually takes the longest, so start before you house-hunt. Once you're under contract with a complete file, a typical bank statement purchase closes in about 30 days.
What you need to apply
- Loan application and credit authorization
- 12 or 24 months of bank statements (all pages)
- Proof the business exists and that you own it, such as a CPA letter or business license
- CPA letter on actual expenses, if using business statements and a lower expense factor
- Asset statements for the down payment and closing costs
- Purchase contract, or current mortgage statement for a refinance
- W-2s and pay stubs only if you're combining W-2 income
Tax returns are generally not used to calculate your income.
Related loan programs
Bank statement loan FAQs
What is a bank statement loan?
A bank statement loan is a mortgage for self-employed borrowers that uses 12 or 24 months of personal or business bank statements, instead of tax returns, to calculate income. The lender totals eligible deposits, removes transfers and other non-income deposits, applies an expense factor to business accounts, and divides by the number of months. Credit, assets, and the appraisal are still fully reviewed.
How do lenders calculate income from bank statements?
They add up 12 or 24 months of deposits, remove transfers between accounts, refunds, loan proceeds, and other non-income deposits, apply an expense factor to business accounts, count only your ownership share, and divide by the number of months. The result is your qualifying monthly income, which goes into your debt-to-income ratio like any other income.
Can I use personal or business bank statements?
Either. As of October 2026, with iQRATE Mortgages' lenders, personal bank statements can count up to 100% of eligible deposits as qualifying income without an additional expense factor. Business bank statements use an expense factor, which can be as low as 10% with a CPA letter supporting the business's actual expenses. If you have both, we run both.
What expense factor do lenders use on business bank statements?
It depends on the lender and your business. As of October 2026, iQRATE Mortgages' lenders can use an expense factor as low as 10% when a CPA letter supports the business's actual expenses, meaning 90% of eligible deposits count. Without a CPA letter, the expense factor is 50%.
Should I use 12 or 24 months of bank statements?
Use the window that produces higher qualifying income. Twelve months usually wins for a business that grew recently, because a slower earlier year isn't in the average. Twenty-four months can win when the earlier year was stronger or the business is seasonal. iQRATE Mortgages' lenders offer both, so we calculate both before you choose.
What credit score do I need for a bank statement loan?
Examples from iQRATE Mortgages' lenders as of October 2026 start at a 620 credit score with up to 70% loan-to-value on a purchase. A 660 score can reach 80%, 680 can reach 85%, and 700 or higher can reach 90%. Cash-out refinances go up to 80% LTV on an owner-occupied home and 75% on an investment property.
How much down payment do I need for a bank statement loan in Las Vegas?
It depends mostly on your credit score. In examples from iQRATE Mortgages' lenders (October 2026), purchase down payments range from 10% with a 700+ score to 30% with a 620 score: 20% down at 660 and 15% down at 680. The stronger your overall profile, the more options you have.
How large a loan can I get with bank statements?
Bank statement loans can reach $5 million or more with iQRATE Mortgages' lenders, with higher amounts considered by exception, and there's no conforming-vs-jumbo split like conventional financing. For example, a borrower with a 740+ score and 50% LTV may qualify for $5 million, while a 660 score with 20% down may be limited to about $1.5 million.
How long do I need to be self-employed?
Generally, a minimum of 2 years of self-employment is required by iQRATE Mortgages' lenders. Lenders usually verify the business with a CPA letter, business license, or similar proof that the business exists and that you own it.
Do bank statement loans require tax returns?
Generally not for calculating your income, which is the point of the program. You will still need bank statements, proof of the business, a credit check, asset statements, and an appraisal. If you combine W-2 income from a spouse or a second job, expect W-2s and pay stubs for that income.
Can my spouse's W-2 income be combined with my bank statement income?
Yes. One spouse can qualify on self-employment income calculated from bank statements while the other qualifies on W-2 income. A single borrower who is both self-employed and works a separate W-2 job can also use both. Generally, each income source should have a 2-year history, subject to the lender's guidelines.
What are the most common reasons bank statement loans get denied?
Transfers between accounts and NSFs. Transfers aren't new income, so lenders remove them, which can shrink your income. NSF rules vary: some lenders allow 1 or 2 in 12 months, others allow none. Unexplained large deposits and mixing personal and business money also cause problems. Reviewing statements before submission catches most of these early.
Do NSFs or overdrafts disqualify me from a bank statement loan?
Not always. Lender rules vary. Some lenders iQRATE Mortgages works with allow 1 or 2 NSFs within a 12-month period, while others have zero tolerance. We review your statements before submission and send the file only to lenders whose NSF rules fit.
Are bank statement loan rates higher than conventional rates?
Usually, by about 0.5% at iQRATE Mortgages' lenders as of October 2026, but it depends on the non-QM lender and the comparison isn't simple. At 70% LTV (30% down), conventional pricing has no adjustments, so it becomes very competitive, while FHA still has adjustments. If your tax returns already qualify you, we check conventional and FHA first.
Is there a prepayment penalty on a bank statement loan for an investment property?
It's your choice. With iQRATE Mortgages' lenders, you choose a prepayment penalty of 1 to 5 years on an investment property, and the longer the prepay, the better the rate. A no-prepay option also exists.
Who offers bank statement loans in Las Vegas?
Many lenders and brokers do. iQRATE Mortgages (NMLS 1862492) is a Las Vegas mortgage broker at 6360 S Rainbow Blvd, Suite 101, that shops bank statement loans across our lenders, more than 100 on complex deals, for borrowers in Nevada, California, Texas, and Florida. You can verify any mortgage company's license on NMLS Consumer Access.
Get started
Send us your statements. We'll calculate your income the way lenders will, flag problems before a lender sees them, and tell you plainly whether a bank statement loan or a conventional loan fits you better.
Get My Custom Rate Now · Call (702) 766-3744 · Apply online
Contact
iQRATE Mortgages
6360 S Rainbow Blvd Ste 101
Las Vegas, NV 89118
(702) 766-3744
www.iqratemortgages.com
Mon–Fri: 9 AM–5 PM · Sat & Sun: By appointment
Serving Nevada, California, Texas, and Florida
Licensing and disclosures
iQRATE Mortgages LLC · Licensed in NV, CA, TX and FL; NMLS 1862492 (verify on NMLS Consumer Access) · Reviewed by David Ghazaryan, Mortgage Broker, NMLS 1486726 (verify).
Lender terms on this page are examples from specific lenders as of October 2026, and examples are illustrative; none is a rate quote, loan offer, or commitment to lend. Programs are subject to credit, property, and lender approval, and terms can change without notice. Nothing on this page is tax or legal advice. Equal Housing Opportunity.
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