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KNB Capital · Loan Programs
Bank Statement
Loan
Self-employed? Qualify using 12–24 months of bank deposits instead of tax returns. Designed for business owners, freelancers, and entrepreneurs whose write-offs don’t reflect actual income.
The Basics
What Is A Bank Statement Loan?
A bank statement loan qualifies self-employed borrowers using actual cash deposits — not the adjusted gross income on their tax returns. Lenders average your monthly deposits over 12 or 24 months (with an expense factor applied) to determine qualifying income.
For business owners who legitimately reduce their taxable income through deductions, this program unlocks far more buying power than conventional or FHA. If your bank shows consistent income flowing through but your Schedule C tells a different story, this is your loan.
Do You Qualify?
Bank Statement Loan Requirements
Down Payment
As low as 10% with strong credit (700+). Most programs require 10–20% down depending on loan size and credit profile. Gift funds are typically allowed.
Self-Employment
Must be self-employed for at least 2 years. Business ownership verified via business license, CPA letter, or entity documents. No W-2 employment income used in this calculation.
Statement Types
Business bank statements (lender applies 50% expense factor) or personal bank statements (no expense factor). 24-month programs typically offer better qualifying income than 12-month.
Credit Score
640+ minimum. Unlike conventional loans, bank statement programs don’t penalize for having business losses on tax returns — only cash flow and credit matter.
Common Questions
What Self-Employed Borrowers Ask Us Most
Business Statements vs Personal Statements — Which Is Better?
It depends on where your revenue flows. Personal statements use 100% of deposits. Business statements use 50% (after expense factor). We run both calculations and use whichever gets you to a higher qualifying income.
How Is My Income Calculated?
We add up all qualifying deposits over 12 or 24 months, apply the appropriate expense factor, and divide by the number of months. That monthly average is your qualifying income for the DTI calculation.
Can I Use Both W-2 Income AND Bank Statements?
Yes — if you have a salaried employee spouse or you also have some W-2 income yourself, we can combine sources. This often dramatically increases your qualifying amount.
Your Write-Offs Shouldn’t Cost You A Home
Let us show you what you actually qualify for based on real cash flow.