Bank Statement Loans in Jacksonville, Florida

Florida’s largest city by area, Jacksonville, sits on the Atlantic coast where the St. Johns River meets the sea. With a population approaching one million and a diversified economy anchored in logistics, healthcare and military industries, Jacksonville has become one of the Sunshine State’s most affordable and livable metros. Median home prices hover just over $303,000, making the city more attainable for first‑time buyers and investors compared with pricier markets like Miami or Fort Lauderdale. Yet for self‑employed professionals—contractors, small‑business owners, gig workers and freelancers—qualifying for a traditional mortgage can be challenging. Bank statement loans offer a flexible alternative. This article explains how bank statement loans work, who qualifies, why they are particularly appealing in Jacksonville, and why Select Home Loans is the premier lender for self‑employed borrowers in the region.

Understanding Bank Statement Loans

What Are Bank Statement Loans?

Traditional mortgage underwriting relies on W‑2s, tax returns and other documentation of salaried income. Self‑employed borrowers often have fluctuating earnings, write‑offs and complicated tax filings that make it difficult to prove consistent income. A bank statement loan addresses this challenge by qualifying borrowers based on the deposits shown in their personal or business bank statements rather than tax returns. Typically, lenders require twelve or twenty‑four months of consecutive bank statements to calculate average monthly income. The underwriter reviews deposits to determine an income figure and applies an expense ratio (often around 50 %, though it varies by lender) to account for business costs. This figure replaces the traditional gross income used in standard mortgages.

How Do These Loans Work?

Bank statement loans function similarly to conventional mortgages in terms of interest rates, loan terms and closing procedures. The major differences lie in documentation requirements and underwriting methodology:

Documentation: Instead of two years’ tax returns and W‑2s, borrowers supply 12–24 months of bank statements. Lenders may also request profit‑and‑loss statements, but tax returns are usually not required.
Income Calculation: Underwriters average monthly deposits to derive qualifying income. They may exclude transfers between accounts and non‑recurring large deposits. Lenders apply an expense factor (often 50 % or more) to estimate net income.
Credit Scores and Down Payments: Bank statement loans generally require higher credit scores than FHA or VA loans. Many lenders stipulate a minimum FICO of 620 and may offer down payments as low as 10 % for scores above 660.
Interest Rates: Rates on bank statement loans tend to be slightly higher than conventional mortgages because the perceived risk is greater. Borrowers should expect to pay about 1 % higher rates, though this varies with market conditions and credit factors.
Reserves: Lenders often require borrowers to show several months of principal, interest, taxes and insurance (PITI) reserves in liquid assets. This demonstrates an ability to handle payments during periods of lower business income.

Who Qualifies for Bank Statement Loans?

Bank statement loans are designed for borrowers who have strong cash flow but can’t prove it through W‑2s. Qualifying occupations include:

Small‑business owners and entrepreneurs
Independent contractors (consultants, real estate agents, delivery drivers)
Gig economy workers (rideshare, delivery, freelance digital work)
Medical professionals with private practices
Artists, musicians and influencers
Realtors or property managers

The common thread is that these professionals often show low taxable income due to deductions and business expenses; however, their bank statements reveal steady and sufficient deposits that demonstrate the capacity to handle mortgage payments. This flexibility makes bank statement loans a powerful tool for Jacksonville’s growing population of self‑employed individuals.

Jacksonville’s Housing Market: Affordability and Growth

Median Prices and Market Trends

Jacksonville’s real estate market stands out for its affordability compared with other major Florida cities. As of June 2025, the median sold price of a home in Jacksonville was $303,089, with a price per square foot of $186—down 1.4 % year over year. Inventory totaled 6,603 homes for sale, up 3.6 % from the previous month. This larger inventory gives buyers more options and indicates a market that is cooling slightly after several years of rapid appreciation. Approximately 60 % of homes sold below their asking price, which suggests negotiating power for buyers.

This environment is ideal for investors and self‑employed buyers who seek value and cash flow. While home prices are moderating, Jacksonville continues to enjoy long‑term growth driven by an influx of new residents attracted by the city’s cost of living, job opportunities and lifestyle. The metropolitan area’s population surpasses 1.6 million and is projected to grow steadily over the next decade.

Rental Demand and Investment Potential

Florida’s statewide fair‑market rents show a two‑bedroom apartment averaging around $1,601 per month. In Jacksonville, the figure is higher: the fair‑market rent for a two‑bedroom unit is approximately $1,730, and a three‑bedroom unit averages $2,163. These rents provide compelling cash‑flow opportunities for those purchasing duplexes or multi‑family properties using bank statement loans.

Jacksonville’s rental market benefits from a diverse tenant base that includes young professionals, military personnel stationed at NAS Jacksonville and Mayport Naval Station, and students attending universities such as the University of North Florida. Additionally, the city’s strong logistics and healthcare industries create steady demand from professionals relocating from other states. With many residents priced out of homeownership because of inflation or higher mortgage rates, the rental market remains robust.

Local Economy and Self‑Employment

Jacksonville’s economy has diversified over the past two decades. Major employers include Baptist Health, Mayo Clinic, CSX Corporation, Deutsche Bank, Fidelity National Information Services (FIS), and an array of logistics companies due to the deepwater port at Blount Island. The city hosts numerous military facilities, which support tens of thousands of jobs. This economic diversity fosters entrepreneurship; many residents work as independent contractors, consultants or small‑business owners. For these self‑employed individuals, bank statement loans become a vital tool for accessing homeownership and building wealth.

Why Bank Statement Loans Are Ideal in Jacksonville

Meeting the Needs of Self‑Employed Borrowers

Jacksonville boasts a growing community of freelancers and entrepreneurs—ranging from tech consultants to small construction businesses—who often have high gross incomes but relatively modest taxable income. Bank statement loans allow these borrowers to leverage their cash flow by using 12–24 months of deposits as proof of income. This flexibility is crucial for those who may not have consistent W‑2 earnings or who strategically minimize taxable income through deductions.

Affordability and Cash‑Flow Potential

The city’s relatively low median home price of $303,089 translates to lower mortgage payments compared with other metro areas. For instance, a $300,000 home financed with 20 % down at a 7 % interest rate would yield a monthly principal and interest payment of roughly $1,600. When compared to the average rent of $1,730 for a two‑bedroom apartment, owning property—especially a duplex or triplex—can quickly become cash‑flow positive. Bank statement loans enable investors to purchase small multi‑family properties and qualify based on rental income rather than personal W‑2 income, making it easier to scale a real estate portfolio.

Fast Closings and Competitive Advantage

Jacksonville is currently a buyer’s market, with more homes for sale than there are active buyers. In this competitive landscape, being able to close quickly gives buyers an edge. Bank statement loans often have streamlined underwriting because they skip the step of verifying tax returns. Select Home Loans, for example, prides itself on fast processing and closings, which can be critical in a market where desirable properties still receive multiple offers.

Jumbo Loan Opportunities

While Jacksonville’s median home price is affordable, the city also has desirable waterfront and luxury neighborhoods—such as Ponte Vedra, San Marco and Riverside—where home values exceed $1 million. Bank statement loans can be structured as jumbo mortgages up to several million dollars. Lenders like Select Home Loans are experienced in underwriting high‑value loans for self‑employed borrowers. This allows entrepreneurs and professionals with fluctuating income to purchase or refinance luxury properties without traditional income documentation.

Loan Requirements, Rates and Terms

Credit and Down Payment

To qualify for a bank statement loan, borrowers typically need a minimum credit score of 620. For self‑employed borrowers with scores above 660, lenders may allow down payments as low as 10 %. However, many lenders require 15–20 % down to reduce risk. Borrowers with scores below 660 may need larger down payments (20–30 %) and should expect higher interest rates.

Bank Statement Documentation

Most lenders request 12 or 24 months of continuous personal or business bank statements. Personal statements typically reflect all deposits, while business statements require a thorough review to exclude pass‑through deposits or transfers. Borrowers should ensure consistent deposits and avoid large unexplained cash infusions, which could trigger further scrutiny.

Expense Factors and Qualifying Income

Underwriters apply an expense factor—often around 50 % of deposits—to account for business expenses. Some lenders offer lower expense factors (35 %–40 %) if the borrower can provide a profit‑and‑loss statement verifying lower operating costs. The calculated net income is then used to determine the debt‑to‑income (DTI) ratio. Most lenders allow DTIs up to 45–50 % for bank statement loans.

Interest Rates and Closing Costs

Bank statement loan rates are generally 0.5–1.5 % higher than comparable conventional mortgage rates due to increased risk. As of mid‑2025, typical rates range from 7 % to 9 %, depending on the lender, down payment, credit score and loan term. Borrowers should also budget for closing costs, which may include underwriting fees, appraisal fees, and lender or broker points. Prepayment penalties may apply; some loans feature three‑year prepayment penalties that step down over time.

Reserves and Other Requirements

Lenders typically require two to six months of PITI reserves. Borrowers who own multiple properties may need additional reserves. A history of on‑time housing payments or rental agreements may also strengthen the loan file. Some lenders may ask for letters from a certified public accountant to verify self‑employment and the nature of the business.

Pros and Cons of Bank Statement Loans in Jacksonville

Pros

Access to Financing Without Tax Returns: Self‑employed borrowers can qualify using bank statements instead of tax returns.
Higher Loan Amounts: Bank statement loans often allow higher debt‑to‑income ratios than conventional loans, enabling borrowers to qualify for larger mortgage amounts.
Flexible Use: Borrowers can purchase primary residences, second homes or investment properties. Lenders like Select Home Loans also offer financing for duplexes, triplexes and four‑unit properties.
Fast Processing: Without the need for tax return verification, bank statement loans can close faster than traditional mortgages.
Ability to Finance Luxury Homes: Jumbo bank statement loans enable borrowers to purchase high‑value properties.

Cons

Higher Interest Rates: Bank statement loans carry slightly higher rates compared with conventional loans.
Larger Down Payment: Many lenders require at least 15–20 % down. Borrowers with lower credit scores may need 25–30 % down.
Potentially Higher Closing Costs: Lenders may charge additional fees or points due to the non‑traditional underwriting.
Stricter Reserve Requirements: Borrowers need adequate cash reserves, which may tie up capital for other investments.
Limited Lender Options: Not all mortgage companies offer bank statement loans; borrowers must work with specialized lenders like Select Home Loans.

Real‑World Example: A Jacksonville Entrepreneur’s Journey

Consider “Tom,” a successful local restaurant owner whose business generates $500,000 in annual revenue. Tom’s tax returns show minimal net income because he reinvests heavily in his restaurant and claims substantial deductions. With a median credit score of 680, Tom wanted to buy a $450,000 duplex near the University of North Florida as an investment. Traditional lenders denied his application due to low taxable income. Tom turned to Select Home Loans, a Florida‑based lender specializing in bank statement loans.

Tom provided 24 months of business bank statements showing average monthly deposits of $41,667. After applying a 50 % expense factor, the underwriter calculated a qualifying monthly income of $20,833. Tom’s total debt obligations, including the proposed mortgage, taxes, insurance and his personal debts, resulted in a DTI ratio of 40 %, well below the lender’s maximum. He made a 20 % down payment ($90,000), and Select Home Loans locked him into a 30‑year fixed‑rate loan at 7.75 %. His monthly principal and interest payments were about $2,580. With the duplex fully rented at $3,600 per month (two units at $1,800), Tom achieved a positive cash flow from day one.

This example illustrates how bank statement loans empower self‑employed individuals in Jacksonville to leverage their cash flow and begin investing in real estate without compromising their business deductions.

Tips for Getting Approved Faster

Organize Bank Statements

Start gathering consecutive bank statements—personal or business—for at least the past 12 months. Ensure deposits are clearly identifiable and avoid large cash deposits without documentation. Keep separate accounts for personal and business finances to simplify underwriting.

Maintain a Healthy Credit Profile

Paying bills on time, reducing credit utilization and avoiding major purchases before applying for a loan will improve your credit score. A score above 660 can qualify you for a lower down payment and better interest rate. Also, check your credit report for errors and dispute any inaccuracies.

Build Cash Reserves

Set aside at least 3–6 months of mortgage payments in liquid assets—checking, savings, money market or retirement accounts. Having reserves shows lenders you can weather periods of lower income or vacancies.

Keep Business Finances Separate

Mixing personal and business funds can complicate underwriting. Use separate bank accounts for business operations, and avoid transferring large sums between them. Clear separation helps lenders evaluate your cash flow more accurately.

Work with a Local Mortgage Expert

Choosing a lender experienced with bank statement loans and familiar with Jacksonville’s market is crucial. Select Home Loans has a team of local mortgage advisors who know the region’s property values, rental rates and insurance requirements. They can guide you through the application process, ensuring that your documents are complete and accurate.

Why Select Home Loans Is Jacksonville’s Top Lender for Bank Statement Loans

Website: SelectHomeLoans.com
Phone: 888-550-3296

Deep Local Expertise

Select Home Loans is headquartered in Florida and has years of experience serving self‑employed borrowers across Jacksonville and the broader state. Their loan officers understand local nuances like property taxes, insurance costs (especially windstorm and flood coverage), and neighborhood‑specific demand. Their familiarity with Jacksonville’s zip codes means they can match borrowers with appropriate appraisers and underwriters.

Fast, Streamlined Closings

Because Select Home Loans specializes in non‑traditional mortgage products, they have developed efficient processes for reviewing bank statements, verifying deposits and calculating qualifying income. Borrowers often close in as little as three to four weeks—crucial in a market where desirable properties can receive multiple offers or sell quickly.

Flexible Loan Programs and Competitive Rates

Select Home Loans offers a variety of bank statement programs: 12‑month and 24‑month statement options, personal or business account analysis, and loans for primary residences, second homes and investment properties. They also provide jumbo bank statement loans up to several million dollars. While rates are slightly higher than conventional mortgages, Select Home Loans negotiates competitive terms and provides full transparency about costs.

Tailored Support for Self‑Employed Borrowers

Select Home Loans works with a wide range of entrepreneurs—from gig workers and Uber drivers to physicians and technology consultants. Their underwriters understand the realities of variable income and can structure loans accordingly. They also guide borrowers on how to organize finances to maximize qualifying income and secure the best rates.

Client‑Focused Service

Borrowers consistently praise Select Home Loans for their responsiveness and personalized guidance. From the initial consultation to closing, their team is available to answer questions, provide pre‑approval letters and help coordinate appraisals and inspections. In a complex transaction like a bank statement loan, this high‑touch service reduces stress and ensures clarity.

Start Your Homeownership or Investment Journey Today

Jacksonville offers unique opportunities for self‑employed professionals and investors. With a median home price of just over $303,000 and strong rental demand, the city is primed for those looking to build wealth through real estate. Bank statement loans allow entrepreneurs, freelancers and gig workers to leverage their bank deposits rather than tax returns, opening the door to homeownership and investment without sacrificing business deductions or waiting years to build a traditional income history.

If you’re a self‑employed borrower in Jacksonville or the surrounding area, consider how a bank statement loan could help you secure the home or investment property you’ve been dreaming about. Select Home Loans is ready to guide you through every step—from reviewing your bank statements to closing on your new property. Their Florida‑based team combines deep local knowledge with expertise in self‑employed lending, providing fast approvals and competitive terms.

Ready to get started? Contact Select Home Loans today for a free consultation. Whether you’re buying a cozy bungalow in Riverside, a duplex near the University of North Florida or a waterfront property in Atlantic Beach, their loan specialists will help you navigate the process and find the best financing solution for your unique situation. Don’t let traditional mortgage hurdles stand in the way of your Jacksonville real estate dreams—unlock the power of bank statement loans and start building your future now.