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At Miranda Mortgage in Denver, we understand that self-employed borrowers face unique challenges when it comes to home financing. Traditional mortgage processes often overlook the realities of business owners, freelancers, and independent contractors. That’s why we’re proud to offer the Bank Statement Program—a flexible, accessible mortgage solution designed specifically for hardworking entrepreneurs like you.
If you’ve ever been frustrated by the traditional mortgage process, you’ll be pleased to know there’s a better way to demonstrate your financial strength without relying solely on tax returns.
A Bank Statement Mortgage allows borrowers to qualify for a home loan using bank statements instead of traditional tax documents. Rather than evaluating W-2s or corporate tax returns, lenders review your personal or business bank statements to verify income.
This program was created to help self-employed individuals who may have legitimate business deductions that lower their taxable income but still have consistent cash flow. By focusing on real income deposits, the Bank Statement Program offers a practical solution for buyers whose financial picture doesn’t fit neatly into traditional guidelines.
The Bank Statement Program is ideal for a wide variety of self-employed individuals, including:
If your tax returns don’t accurately reflect your true earning potential due to legal deductions, this program can help you qualify for the home you deserve based on your real cash flow.
To qualify for a Bank Statement Mortgage, borrowers typically need:
The consistency and volume of deposits across these statements are crucial in determining eligibility.
Instead of relying on net income after deductions, lenders calculate income based on total deposits shown in your bank statements. They apply an “expense factor”—typically 50%—to account for estimated business expenses.
In some cases, if your actual expenses are lower, you can provide a CPA letter to demonstrate a lower expense factor, sometimes as low as 25%. This adjustment can significantly boost your qualifying income and, therefore, your borrowing power.
The Bank Statement Program offers a variety of benefits that make it especially attractive for self-employed borrowers:
This flexible approach recognizes the true financial picture of self-employed borrowers, helping more individuals achieve their dream of homeownership.
While the Bank Statement Program offers excellent benefits, it’s important to understand some trade-offs:
Because Bank Statement Loans are considered “loan programs” (non-QM), they often carry slightly higher interest rates—typically 1 to 2 percent above traditional loans.
Borrowers should be prepared to make a larger down payment, usually 20%. However, some programs allow as little as 10% down, depending on other qualifying factors.
Most lenders require a minimum credit score of 660 for bank statement loans, though a score of 700 or higher is ideal to secure better terms.
Unlike conventional loans, Bank Statement Programs often require borrowers to show reserves—usually between six and twenty-four months’ worth of mortgage payments—available after closing.
DTI requirements tend to be stricter. Most programs prefer DTIs of 43% or lower, although some lenders may allow up to 50% in specific cases.
Understanding these factors ahead of time can help borrowers prepare properly and minimize surprises during the application process.
Bank Statement Loans often pair with adjustable rate mortgage (ARM) products, providing lower initial rates that adjust over time. While 30-year fixed-rate options do exist, they are less common in the non-QM space.
ARMs can be a smart financial tool for self-employed borrowers planning to refinance or relocate within a few years, providing lower upfront payments and financial flexibility.
At Miranda Mortgage, we specialize in helping self-employed clients navigate the complexities of non-traditional loan options. Here’s why borrowers trust us:
When you work with Miranda Mortgage, you’re gaining a dedicated partner, not just a lender.
If you’re ready to explore a Bank Statement Loan with Miranda Mortgage, here’s how to get started:
Our goal is to make the process smooth, informative, and ultimately rewarding.
For self-employed individuals in Denver and beyond, the dream of owning a home is absolutely achievable—with the right loan program and the right team by your side. The Bank Statement Program offers a flexible, realistic way to qualify based on your true earning power—not just your tax filings.
At Miranda Mortgage, we are proud to help entrepreneurs, freelancers, and independent professionals find financing solutions that recognize their hard work and success. If you’re ready to take the next step, we’re ready to help.
