Bank statement loans are a type of non-traditional mortgage designed for borrowers who can’t easily document their income using W-2s or tax returns. Instead of relying on conventional proof of income, these loans evaluate a borrower’s financial health based on 12 to 24 months of bank statements, either personal, business, or both.
They fall under the category of non-qualified mortgages (non-QM), which means they don’t conform to the underwriting guidelines of Fannie Mae or Freddie Mac. While that might sound like a red flag, it’s actually a lifeline for many self-employed individuals and business owners who write off a large portion of their income or manage inconsistent cash flow.
In Florida, where many people are entrepreneurs, freelancers, or small business owners, bank statement loans have grown increasingly popular as a flexible path to homeownership. If you’re financially stable but don’t have traditional pay stubs, this loan type may be the perfect fit.
Who Are Bank Statement Loans For?
Bank statement loans are ideal for anyone who earns a good income but doesn’t have a conventional W-2 or tax return to prove it. This includes:
- Self-Employed Professionals – Think real estate agents, consultants, creative freelancers, and small medical practice owners.
- LLC Partners and Entrepreneurs – Those who operate under pass-through entities and typically write off expenses on tax returns.
- Retirees with Assets – Some retirees may no longer work but have significant savings and investment income flowing into their bank accounts.
- Gig Economy Workers – Uber drivers, delivery workers, artists, and other 1099 workers often find it hard to qualify for a traditional mortgage due to income variability.
If you fall into one of these categories and your bank deposits tell a better story than your tax filings, this loan option gives you a chance to compete in Florida’s booming real estate market.
How Do Bank Statement Loans Work?
Unlike conventional loans that rely heavily on tax returns, pay stubs, and employer verification, bank statement loans take a broader view of your financial reality.
Here’s how the process typically works:
- Lenders analyze your bank statements, usually from the last 12 or 24 months, to determine your average monthly income based on deposits.
- They calculate a debt-to-income (DTI) ratio from those numbers, often using 50% of gross deposits as income if reviewing business accounts (or closer to 100% if personal).
- Additional documentation may include: a business license, letters from a CPA, and proof that the income in the statements aligns with your work.
It’s less about how much you made after deductions, and more about the money actually coming in. This method is especially helpful for borrowers who reinvest heavily into their businesses or have tax returns that reflect minimal net income.
What Are the Requirements?
Bank statement loans are more flexible than traditional mortgages, but there are still important eligibility criteria you’ll need to meet. Here’s what most lenders in Florida typically expect:
- Credit Score: A minimum FICO score of around 620–660 is common, though some lenders may accept lower scores with larger down payments.
- Bank Statements: You’ll need to provide 12 or 24 months of bank statements, either personal or business. The longer the history, the better your approval odds.
- Down Payment: Most bank statement loans require at least 10%–20% down, depending on the loan size, your credit, and income history.
- Proof of Business: This could be a business license, LLC documents, a CPA letter, or client invoices, whatever confirms your self-employment.
- Reserves: Lenders usually want to see 3–6 months’ worth of mortgage payments in reserve savings or liquid assets.
Lenders may also require you to demonstrate consistent deposits, explain any large irregularities, and show that your income is stable enough to manage monthly payments.
What Are the Pros and Cons?
Pros:
- Flexible Qualification: Ideal for those with strong income but irregular or hard-to-document finances.
- Avoids Tax Return Complexity: Many business owners deduct heavily on taxes, which can make income look artificially low.
- Fast Processing: With the right paperwork, some lenders can close within 21–30 days.
Cons:
- Higher Interest Rates: Non-QM loans usually carry higher rates than conventional ones, reflecting the increased risk.
- Larger Down Payments: You’ll often need to put down more than you would with an FHA or VA loan.
- Limited Secondary Market: These loans aren’t backed by Fannie Mae or Freddie Mac, which can limit some refinancing or resale options.
Still, for many Florida entrepreneurs and freelancers, the benefits far outweigh the drawbacks.
Florida-Specific Considerations
Bank statement loans have become especially popular in Florida, a state known for its large population of entrepreneurs, retirees, gig workers, and real estate investors. With no state income tax and a business-friendly environment, many residents rely on non-W2 income, which is where bank statement loans shine.
Here’s what to keep in mind if you’re applying for one in Florida:
- Common Industries: Construction, real estate, healthcare, hospitality, and digital services are major sectors where self-employed individuals often qualify using bank statement loans.
- Property Values: Cities like Miami, Tampa, Orlando, and Naples are experiencing rising home values. This can help with equity requirements, but also means you may need to prove higher income for larger loans.
- Loan Limits: Unlike conventional mortgages, bank statement loans don’t have strict loan caps, making them attractive for jumbo purchases, especially in luxury coastal markets.
- Condo Approvals: Florida has a huge condo market. Many lenders are cautious with older or high-vacancy buildings, so make sure your condo is on an approved list or meets reserve study guidelines.
- Hurricane Zones: Insurance requirements can be steeper in high-risk zones. Be sure to factor in flood or wind coverage costs when calculating affordability.
If you’re a Florida-based business owner or self-employed buyer, these loans were practically made for you, but choosing the right lender is crucial.
Best Bank Statement Loan Lenders in Florida
If you’re ready to apply, here are some of the top-rated lenders that specialize in bank statement loans across the state, starting with the local leader.
1. Select Home Loans, Florida’s Bank Statement Loan Experts ✅
Select Home Loans is our #1 pick for bank statement loans in Florida. Based in the Sunshine State, their team understands the local market inside and out. They specialize in working with self-employed borrowers, from small business owners to 1099 contractors, and tailor every loan solution around your needs.
What sets them apart:
- Local experts with a personal touch
- In-depth knowledge of Florida underwriting nuances
- Fast quotes and quick approvals
- Help with condos, jumbo loans, and challenging files
📞 888-550-3296
🌐 selecthomeloans.com
2. Angel Oak Mortgage Solutions
A major player in the non-QM space, Angel Oak is a direct lender offering various programs for self-employed buyers, including bank statement, asset depletion, and P&L statement loans. They serve clients across Florida but operate nationally.
3. Griffin Funding
Griffin Funding offers a tech-forward application process and solid support for borrowers in Florida’s metro areas. They’re a strong option if you’re looking for a modern, remote-friendly lender.
4. CrossCountry Mortgage
Known for its wide loan offerings, CrossCountry has teams throughout Florida and is familiar with the nuances of both urban and coastal lending.
5. First Florida Financial Group
As the name suggests, this lender focuses exclusively on Florida clients. Their team has built a strong reputation among business owners for helping secure financing when other lenders said no.
How to Apply for a Bank Statement Loan in Florida
Applying for a bank statement loan is more straightforward than many borrowers expect, especially with the right preparation. Here’s how to get started:
Step-by-Step Application Process
- Gather Your Bank Statements
Most lenders will ask for either 12 or 24 months of business or personal bank statements. These statements are used to verify your income through regular deposits. - Calculate Your Average Monthly Deposits
Lenders typically calculate your average monthly income based on total deposits. If you’re using business bank statements, they’ll apply an expense ratio, commonly 50%, to estimate your actual income. - Choose the Right Lender
Work with a lender who specializes in bank statement loans (like Select Home Loans). They can walk you through the nuances of self-employed lending, especially in Florida’s unique housing market. - Get Pre-Approved
A pre-approval gives you a clear sense of your budget and what terms you qualify for. It also strengthens your position when making offers on a home. - Submit Additional Documentation
Lenders may request a business license, CPA letter, or proof of self-employment. You’ll also need a credit report, ID, and documentation of any assets you plan to use for reserves. - Close Your Loan
Once underwriting is complete, you’ll move to closing just like with a traditional mortgage. The whole process can take as little as 2–4 weeks with a responsive lender.
Tips to Improve Your Approval Odds
- Avoid overdrafts in your statements
- Keep deposits consistent month to month
- Document large or irregular deposits
- Maintain a solid credit score (typically 620+ for most lenders)
- Keep your business expenses organized if using business statements
Common Red Flags That Can Delay Approval
- Frequent NSF (non-sufficient funds) notices
- Gaps in income with no explanation
- Large cash deposits with no traceable source
- Business income that doesn’t match the nature of the business (e.g., a landscaper depositing $100K/month)
A seasoned lender will help you address any concerns up front, so it pays to work with someone experienced in this niche.
Alternatives to Bank Statement Loans
While bank statement loans are a powerful solution for many self-employed and non-traditional borrowers, they’re not the only option. Depending on your financial profile, one of the following loan types might offer better terms or a smoother path to approval.
Profit & Loss (P&L) Statement Loans
Instead of bank statements, these loans rely on your business’s profit and loss statement, typically prepared by a CPA. Lenders will use this document to assess your income and determine loan eligibility.
- Pros: Simplifies the paperwork, especially if your deposits are inconsistent
- Cons: Requires a certified accountant’s involvement, which may add cost
Asset Depletion Loans
Perfect for high-net-worth individuals, asset depletion loans use your liquid assets (like savings, investment accounts, or retirement funds) as income. Lenders calculate a monthly income stream based on the total assets you have available.
- Pros: No income documentation required
- Cons: Usually reserved for borrowers with substantial assets (often $500K+)
DSCR Loans (Debt Service Coverage Ratio)
Primarily for real estate investors, DSCR loans determine loan eligibility based on how much rental income a property generates, not your personal income.
- Pros: No tax returns or bank statements needed
- Cons: Only applicable to investment properties, not primary residences
Each of these alternatives comes with its own set of guidelines and benefits. The right choice depends on your income source, credit profile, and property goals. A knowledgeable lender can help you evaluate these side-by-side.
Final Thoughts
For self-employed individuals and others with non-traditional income sources, bank statement loans have opened the door to homeownership and real estate investment in ways traditional mortgages simply can’t. Whether you’re a freelancer in Miami, a small business owner in Orlando, or a retiree with strong assets in Tampa, this type of loan may be the most flexible, and realistic, way to secure financing.
But flexibility doesn’t mean sacrificing clarity. It’s crucial to work with a lender who specializes in non-QM loans, understands Florida’s real estate market, and takes the time to walk you through every step of the process.
That’s where Select Home Loans comes in.
As Florida’s trusted leader in bank statement loans, Select Home Loans has helped thousands of self-employed borrowers secure the financing they deserve, without the red tape. Their team offers transparent guidance, fast approvals, and tailored loan options designed to work with your unique income situation.
Get started today with a free consultation.
📞 Call 888-550-3296
🌐 Visit selecthomeloans.com
Don’t let paperwork stand between you and your next property. Talk to the experts at Select Home Loans and take the first step toward smarter, more flexible financing in Florida.
