Yes — this product is built for you. Bank statement Non-QM qualifies on deposits, not tax-return AGI, so write-offs do not have to kill your mortgage approval.
If deposits tell a stronger story than your tax return, bank statement financing is often the answer.
Deposit income replaces tax returns for qualification — credit, equity, and reserves still matter.
Statement history
12 or 24 months
Consecutive personal or business statements
Credit score
Mid-600s+ common
Stronger scores unlock better pricing
Down payment
Often 10–20%+
Higher for investment or thinner credit
Reserves
Often 2–6 months PITIA
Helps when income is seasonal or variable
Self-employment length
Typically 2+ years
Shorter history possible with compensating factors
Business docs
As applicable
Ownership letter, articles, or operating agreement
All loans subject to credit and property approval. Guidelines vary by investor.
Conventional underwriting leans on taxable income. Legitimate write-offs that save you money at tax time can shrink the AGI lenders use for DTI — even when cash flow is strong.
Bank statement programs flip that model: they average what hits the account. That closes the gap between how your business earns and what a Schedule C shows.
If you already qualify cleanly on W-2 or conventional self-employed docs, agency products may still be cheaper. We compare both paths honestly.
Self-employed? Still not a fit if…
Related bank statement guides and Non-QM resources from Ryan & Steve.
Typical two-year history rules and shorter-history exceptions.
Deposit averaging, expense factors, and ownership percentage.
Credit, down payment, reserves, and borrower profiles.
Full hub with eligibility, documents, and CTAs.
2MG Daily
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Yes — bank statement Non-QM is designed for self-employed borrowers. Income is calculated from 12–24 months of personal or business deposits instead of tax-return AGI, which often works better when write-offs suppress taxable income.
Yes. Independent contractors, freelancers, consultants, and gig workers with consistent deposit history are common bank statement borrowers — even without a formal LLC.
Yes. Entity owners typically document ownership percentage and use business statements (with an expense factor) or personal statements showing owner draws, depending on where revenue lands.
That is exactly when bank statement programs help. Lenders look at deposits in the account rather than Schedule C or K-1 taxable income — so strong cash flow can still support a mortgage.
Ryan & Steve specialize in deposit-based pre-approvals for Indiana business owners, 1099s, and freelancers.
Ryan Minick and Steve DeLon — Branch Managers & Senior Loan Officers at Luminate Bank. Based in Kokomo, Indiana. Lending nationwide since 2005.
Contact
Ryan Minick NMLS# 203249
Steve DeLon NMLS# 202876
Luminate Bank NMLS# 1281698
Kokomo's Mortgage Team. Lending Nationwide.
1221 Appletree Lane, Kokomo, IN 46902
Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved.
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