Bank statement loans: More mortgage options for self-employed buyers and homeowners as rates ease

How Non-QM bank statement loans help self-employed borrowers qualify as mortgage rates soften

If you’re self-employed, paid on commission, or run a business, you already know the frustration: you can have strong cash flow, great credit, and real assets—yet a traditional mortgage can still feel like a square peg in a round hole.

That’s exactly why bank statement loans exist. They’re designed for borrowers whose real income is easier to see in deposits and cash flow than in W-2s or “perfect” tax returns. Instead of relying only on pay stubs and W-2s, these programs use recent bank statements to document income and help qualified buyers and homeowners move forward. 

And timing matters: mortgage rates have been hovering near 2025 lows. Freddie Mac’s weekly survey put the average 30-year fixed at 6.22% (Dec 11, 2025), down from 6.60% a year earlier—a meaningful shift for both purchase and refinance conversations.

What is a Bank Statement Loan?

A bank statement loan is a mortgage that allows you to qualify using bank statements (often 12–24 months) rather than only W-2s, pay stubs, or tax returns. It’s commonly used by self-employed borrowers, business owners, 1099 earners, and commission-based professionals. 

This is typically offered as part of the Non-QM (non-qualified mortgage) space—meaning the loan doesn’t fit the standard “agency/QM” box, but it can still be a responsible option when documented correctly. 

A quick note on expectations

Bank statement and Non-QM loans can be excellent tools—but they’re not “magic.” You should still expect:

• underwriting documentation (just different documentation)
• guideline requirements that vary by lender
• pricing that depends on credit, equity/down payment, reserves, and overall risk

A strong file presentation matters. The right originator will help you package income clearly and choose the program that fits the scenario.

The takeaway

The mortgage world is evolving—slowly—but it is evolving. With rates near 2025 lows and more product flexibility available, self-employed borrowers have more paths to homeownership (or a better mortgage) than they’ve had in years.

A bank statement loan can turn “I don’t qualify” into “here’s how we do it responsibly.” The key is smart structure, clean documentation, and choosing the right program for your goals.

Disclaimer

This article is for educational purposes only and is not a commitment to lend or a guarantee of approval. Mortgage rates, terms, and program availability change frequently and vary by borrower qualifications, property type, and lender guidelines. Always consult a licensed mortgage professional to review your specific scenario.

About the Author

Darrin J. Seppinni is President of HomeLife Mortgage and a published author with more than forty years in the mortgage industry. He specializes in non-traditional programs—including Bank Statement Loans, DSCR Loans, and No-Doc Loan solutions—that serve self-employed borrowers and real-estate investors.

Contact
Email: darrin@homelifemtg.com | Phone: 949-681-7280