What is a Bank Statement Loan?

A Bank Statement Loan is a home loan program designed for self-employed borrowers and business owners. For qualification purposes, the lender uses deposits made into the business owner’s account as the source of income instead of using the applicant’s tax returns.

Can the program be used for investment properties?

Yes. Eligible occupancy types include primary residence, second home, and investment property.

What are the Bank Statement Loan requirements?

Key requirements for AD Mortgage’s 12/24 Month Bank Statement Loan include 12 or 24 months of personal, business, or combined bank statements; minimum FICO 620 or no score; up to 90% CLTV on purchase; up to 80% CLTV on cash-out; up to 55% DTI on owner-occupied loans; loan amounts up to $4 million for purchase and up to $3 million for cash-out; minimum 3 months of reserves; and 25% business ownership.

Is a Bank Statement Loan a Subprime Loan?

A Bank Statement Loan is not a subprime loan. It is a secondary market program for Non-QM loans that uses alternative ways to qualify the applicant’s income. Many Non-QM programs, including Bank Statement Loans for self-employed borrowers and business owners, are designed around the lending needs of a specific market segment.

What is the difference between a Bank Statement Loan and a traditional loan program?

The primary difference is that a 12/24 Month Bank Statement Loan qualifies the applicant based on deposit income shown in bank statements rather than tax returns.

How long must a borrower be in business to qualify for a Bank Statement Loan in 2026?

A borrower has to be in business at least 12 months to qualify for a Bank Statement Loan for self-employed borrowers.

Can a borrower use personal bank statements on a Bank Statement Loan?

Yes. If ordinary business income is deposited into a personal account, applicants can use personal bank statements. This may complicate the approval process if the account is shared with another person, such as a spouse with W-2 income. If the borrower is a 1099 wage earner depositing income into a personal account, AD Mortgage suggests using the 1099 income program.

Do applicants need a letter from a licensed tax preparer or CPA?

Yes. Borrowers qualifying for a Bank Statement Loan may be asked to provide a letter from a licensed tax preparer. Because tax returns are not reviewed, AD Mortgage may rely on a licensed tax professional to verify items such as the business expense ratio, business operating history, and ownership percentage.

Does a letter from a licensed tax preparer or CPA have to come from the same accountant who prepares the applicant’s tax returns?

No. For a Bank Statement Loan, the letter can come from any licensed tax preparer, accountant, or CPA. It must appear on their letterhead, be signed and dated, and allow verification of the tax professional’s PTIN or CPA license number.

Do applicants have to sign IRS Form 4506-C to qualify for a Bank Statement Loan?

No. IRS Form 4506-C authorizes a lender to pull a tax return transcript, and signing one is not required for a self-employed mortgage under this program.

Can co-signers be added to the borrower’s application for a Bank Statement Loan?

No. Co-signers and applicants who are not occupying the new home are not allowed on a 12/24 Month Bank Statement Loan Program.

Can borrowers get a Bank Statement Loan in 2026 if they have had a foreclosure, bankruptcy, or short sale?

Yes, as long as the bankruptcy, foreclosure, or short sale was completed at least 12 months ago or longer. The time since the certificate of title date may affect the minimum down payment.

Can borrowers whose primary income is derived from cryptocurrency qualify for a Bank Statement Loan?

No. Cryptocurrency deposits cannot be used to qualify for a Bank Statement Loan. Only U.S. bank accounts can be used in the income calculation.

12/24 Month Bank Statement

No Score or FICO 620 Up to 90% CLTV

Available on Prime, Super Prime, and Apex Prime

Our 12/24 Month Bank Statement Loan is a perfect Non-QM loan for the self-employed in 2026. Even if complex tax deductions make their tax returns less than straightforward, this program can provide a clearer picture of their current income or revenue to help them qualify.

Program features

Loan amount up to $4 million
DTI up to 55%
Min. 3 months of reserves required
Mortgage history 0 x 60 x 12, 0 x 30 x12, 0 x 90 x 24

Why choose our 12/24 Month Bank Statement?

Free service to calculate income
Combined statements accepted
No tax returns required

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Program details

Personal, business, or combined bank statements

Min. 3 months of reserves

Concierge Service for income calculation

Min. FICO 620 or no score; for I/O Min. FICO 680 & FTHB no allowed

Up to 90% СLTV purchase / Up to 80% СLTV cash-out

Up to $4 million purchase / Up to $3 million cash-out

Cash-in-hand: No limitation for CLTV <55% & min FICO 680; $1,000,000 for CLTV from 55% to 65% or CLTV>65 & min FICO 700 or CLTV <=55 & FICO <680; $500,000 for CLTV >65% & FICO <700

12/24 month bank statement; 100% deposits for personal, 50% standard expense ratio for business, can be lowered with a third-party prepared Business Expense Letter or P&L Statement

Up to 55% DTI on owner-occupied

Primary, second home, investment

25% of business ownership required

Gift Funds for closing costs and down payment allowed

0 x 60 x 12, 0 x 30 x 12, 0 x 90 x 24

Credit event: 12 months from bankruptcy or foreclosure

Eligible property types: SFR, townhomes, condo warrantable/non-warrantable, condotels, 2-4 units, PUD, short-term rentals, SFR rural, leasehold

Various fixed terms, 5/6 & 7/6 ARM terms

120 months of I/O period, 240/360 months of amortization, qualified at amortized PITIA payment after I/O period

Eligible citizenship: U.S. citizens, Permanent Residents, Non-Permanent Residents, ITIN

Eligible borrowers: Individuals, LLCs/Corp without a hit

Watch our video
about 12/24 Month Bank Statement Program

Fast turnaround times

As fast as

24 hr

Disclosure

As fast as

24 hr

Underwriting

As fast as

48 hr