Flexible mortgage options for self-employed buyers and business owners
If you're self-employed and having trouble qualifying for a mortgage with traditional income documents, a bank statement loan might be the perfect fit. These loans are designed for borrowers who can show consistent cash flow but don’t report income on a W-2.
At Choice Mortgage Group, we help business owners, freelancers, and entrepreneurs throughout Centennial, Denver, Parker, Castle Rock, Highlands Ranch, and beyond get approved using bank statement loans in Colorado.
What is a bank statement loan?
A bank statement loan allows you to qualify for a mortgage based on your actual bank deposits, not your tax returns. Instead of using W-2s or pay stubs, lenders review 12 or 24 months of personal or business bank statements to verify income.
These loans are ideal for:
- Self-employed buyers
- Business owners
- Independent contractors and gig workers
- Real estate agents and commission-based earners
- Anyone whose tax returns don’t reflect true income
More bank statement loan FAQs below.
Key benefits of bank statement loans
- No tax returns required
- Use 12–24 months of bank statements to qualify
- Available for purchase or refinance
- Primary, second homes, and investment properties eligible
- Competitive rates for strong credit and income profiles
These loans are considered non-QM (non-qualified mortgages), which means they follow alternative underwriting rules. That gives you more flexibility if your tax deductions reduce your reported income.
Learn more from Investopedia’s guide to bank statement loans
Do you qualify?
You may be eligible for a bank statement loan if:
– You’ve been self-employed or running your business for at least 2 years
– You have consistent deposits in your business or personal bank account
– You have strong credit and reasonable debt-to-income ratios
– You can provide 12 or 24 months of complete bank statements
We’ll help you determine whether to use personal or business statements and calculate your qualifying income.
Whether you’re buying a new home or refinancing, we’re here to help you qualify on your terms. We work with self-employed clients across Colorado to make homeownership possible even without traditional income documents.
Call or text us at 303-670-0137, email rbaxter@choicemortgage.com, or request a quote. We’ll walk you through your options and run a custom scenario for your situation.
*Loan guidelines current as of May 2025
Bank Statement Loan FAQs
A Bank Statement Loan is a mortgage designed for self-employed individuals, business owners, or freelancers who may not have traditional W2s or tax returns to verify income. Lenders analyze personal or business bank statements to determine qualifying income.
Most bank statement loan programs in Colorado require a minimum credit score of around 660, though some lenders may allow scores as low as 620 with strong compensating factors. That could include a larger down payment, solid bank deposit history, or cash reserves.
Unlike traditional loans, bank statement programs focus more on your income deposits than tax returns or W-2s — which makes them a great fit for self-employed borrowers or business owners who don’t show all their income on paper.
If you're self-employed and wondering what you qualify for, I can walk you through your options and help run the numbers.
Visit our blog post for a more in depth article on minimum credit scores for bank statement loans in Colorado
These loans are perfect for self-employed professionals, small business owners, real estate agents, or independent contractors in Colorado who have significant tax write-offs but demonstrate consistent cash flow through their bank accounts.
Lenders typically review 12 to 24 months of bank statements, focusing on consistent deposits. An "expense factor" (usually 25-50%) is then applied to the gross deposits to estimate a net qualifying income.
Most Bank Statement Loan programs require either 12 or 24 consecutive months of bank statements (personal, business, or a combination) to assess income consistency and stability.
Down payments for Bank Statement Loans typically range from 10% to 20% or more, depending on the loan program, property type, and borrower's financial profile. While flexible, credit score requirements generally start from the mid-600s.
Yes, Bank Statement Loans offer versatility and can be utilized for various property types, including primary residences, second homes, and investment properties, providing crucial financing options for self-employed borrowers across Colorado.
Yes — many programs allow independent contractors, freelancers, or 1099 earners to qualify using personal bank statements, even if they don’t have a formal business entity.
Some lenders will ask for proof that your business is legitimate — this could be a business license, a CPA letter, or proof of invoicing/receipts, depending on the loan type and lender.
In many cases, yes — though lenders typically prefer one or the other for consistency. If you co-mingle funds, they may allow blended calculations with proper documentation.
Yes — since these loans carry more risk for lenders, the interest rates are usually 0.5–1.5% higher than traditional loans. But for many self-employed borrowers, the flexibility is worth it.
