Self-employed borrowers can get a mortgage without tax returns using a bank statement loan, which qualifies you based on 12 to 24 months of business or personal bank deposits rather than your adjusted gross income. This is ideal when tax write-offs make your reported income look lower than your real cash flow.
Why are tax returns a problem for the self-employed?
Business owners write off legitimate expenses to lower their taxable income. That is smart tax planning, but it works against you on a traditional mortgage, where lenders qualify you on your net income after deductions. A bank statement loan solves this by looking at the money actually flowing through your accounts.
How does a bank statement loan calculate income?
Instead of tax returns, the lender reviews 12 or 24 months of bank statements and uses your average monthly deposits to establish qualifying income. An expense factor is applied to account for the cost of running your business. The result is a realistic picture of what you can repay.
- Qualify on 12 or 24 months of deposits
- No tax returns or W-2s required
- Available for purchases and refinances
- Ideal for business owners, contractors, and gig earners
Who should consider a bank statement loan?
This program fits self-employed borrowers, 1099 contractors, real estate investors, and business owners whose tax returns understate their true earnings. If you have strong cash flow but complex paperwork, High Place Mortgage can structure a path to approval.
Frequently Asked Questions
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