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flexible financing for self-employed borrowers
uses bank statements instead of tax returns to help verify income
Bank Statement Loans are designed for members who are self-employed or have non-traditional income sources. Instead of relying on tax returns, these loans use 12-24 months of bank statements to help document income, making it easier to qualify for a home purchase or refinance.
If your tax returns don’t fully reflect your earnings, our local mortgage advisors can walk you through Bank Statement Loan options, help you review your income documentation, and get you prequalified with confidence.
Features
- Flexible income verification – Qualify using 12-24 months of personal or business bank statements instead of tax returns (connect with a mortgage advisor for more information)
- Purchase or refinance options – Available for home purchases or refinances, including rate-and-term or cash-out scenarios
- Fixed-rate mortgage – FRM options with predictable principal and interest payments
- Term options – 15 or 30-year terms to match your budget and long-term plans1
- Wide loan size range – Loan amounts typically from $150,000 up to $4 million (subject to approval)
- Guidance from start to finish – Work with a United mortgage advisor who understands self-employed income
Requirements
- Self-employed or non-traditional income sources may be required (such as business owners, contractors, or commission-based earners)
- 12-24 months of consecutive personal and/or business bank statements to document income
- Standard credit, income, and collateral guidelines apply, including review of recent payment history and obligations
- Loan size and eligible property types subject to program guidelines and approval
- Must meet United’s overall underwriting and debt-to-income requirements
Ideal For
Bank Statement Loans are ideal for members whose income doesn’t fit neatly into traditional documentation, such as small business owners, independent contractors, gig workers, and commission-based earners. If your tax returns show significant write-offs or don’t fully reflect your earnings, a Bank Statement Loan can provide another way to demonstrate your ability to repay and move forward with a home purchase or refinance.
Frequently Asked Questions
A: A Bank Statement Loan lets you qualify for a mortgage using 12-24 months of personal or business bank statements instead of traditional income documentation like W-2’s, pay stubs or tax returns. Cash flow and deposit history are examined to estimate your income and ability to repay.
A: This type of loan is ideal for self-employed individuals, freelancers, independent contractors, 1099 earners, business owners, or anyone with non-traditional income — especially when tax returns understate actual cash flow.
A: We require the last 12-24 months of bank statements. To learn more about Bank Statement Loan requirements, and how many months of bank statements you would need to prorvide, consult a Mortgage Advisor.
A: Yes. Bank Statement Loans generally support both home purchase and refinances (including rate-and-term refinance and, depending on terms, cash-out refinance). This gives flexibility for borrowers whose income may fluctuate or come from self-employment. Chat with a local Mortgage Advisor to see what loan types you might qualify for.
A: Because bank-statement loans rely on cash flow rather than W-2/tax returns, underwriting can differ. Typically:
You must supply 12-24 months of bank statements, connect with a mortgage advisor to determine how many statements you will need.
You may need a larger down payment or end up with a higher interest rate than conventional loans, depending on income, credit profile, and loan size.
Credit score, debt-to-income ratio, and property eligibility are important factors, as with any mortgage.
A: Yes, because income is verified via cash flow instead of tax returns, lenders like United assess risk differently. Sometimes this means:
Slightly higher interest rates or down payment requirements compared to traditional loans.
More documentation (bank statements, possibly business/personal separation, cash flow consistency) is required. It’s important to have clean, organized financial records.
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Offer and terms subject to change. Loans subject to credit and collateral approval as well as program terms and conditions. Rate and term based on individual credit history and program guidelines. Consult a mortgage advisor for more details.
[1] Payment example: $250,000 financed for 360 months at a fixed rate of 8.62% APR equals a monthly payment of $1,642.32. Payment example: $250,000 financed for 180 months at a fixed rate of 7.064% APR equals a monthly payment of $2,143.56. Payment examples do not include amounts for taxes and insurance premiums. If applicable, actual payment obligation will be greater. Up to 360 months financing available. Certain restrictions apply. This offer may not be available in all states.