Bank Statement Loans in Orlando, Florida

Orlando is world‑famous for its theme parks, sunny weather and thriving tourism industry. Yet beyond the attractions of Walt Disney World, Universal Studios and SeaWorld lies a booming metropolitan area of more than 2.6 million residents. The region boasts diverse industries such as healthcare, aerospace, technology, higher education and hospitality. Orlando’s cost of living is moderate compared with coastal Florida metros, making it attractive to families, young professionals and entrepreneurs. As of June 2025, the median sold price of a home in Orlando was $395,402, with a price per square foot of $242. While prices rose 2.2% year over year, the city still offers relative affordability, especially compared to Miami or Fort Lauderdale.

Many Orlando residents are self‑employed—operating tourism‑related businesses, tech startups, medical practices or working as freelancers and gig workers. For these individuals, qualifying for a traditional mortgage can be challenging. Bank statement loans provide a viable alternative by evaluating income through bank deposits rather than W‑2s or tax returns. This article explains the essentials of bank statement loans, examines why they’re particularly advantageous in Orlando, and highlights why Select Home Loans stands out as the premier lender for self‑employed borrowers in the region.

Understanding Bank Statement Loans

Definition and Purpose

A bank statement loan is a mortgage product that allows borrowers to qualify based on their bank deposits instead of traditional income documentation. Rather than relying on W‑2s or tax returns, lenders review 12 or 24 months of bank statements to calculate a borrower’s average monthly income. They then apply an expense factor—often around 50 %—to account for business expenses, using the remaining amount as the qualifying income.

Key Features

• Documentation: Borrowers supply personal or business bank statements for a specified period, typically 12–24 months. Tax returns are usually not required.
  
• Credit Requirements: Minimum credit scores of 620 are standard, with better rates and lower down payments available for scores above 660.
  
• Down Payments: Lenders generally require 10–30 % down. Borrowers with strong credit may qualify for as little as 10 % down on primary residences.
  
• Reserves: Lenders ask for two to six months of principal, interest, taxes and insurance (PITI) reserves.
  
• Interest Rates: Rates are generally 0.5–1.5 % higher than conventional mortgages, reflecting the higher risk associated with alternative income verification.
  

Who Should Consider a Bank Statement Loan?

Bank statement loans are designed for self‑employed professionals and others whose taxable income doesn’t reflect their true earning power. This includes:

• Small‑business owners in industries like hospitality, healthcare, retail, entertainment and technology.
  
• Independent contractors such as consultants, real estate agents, rideshare drivers, designers and landscapers.
  
• Gig workers and freelancers—musicians, artists, photographers, web developers and online content creators.
  
• Doctors, dentists and other professionals with private practices.
  
• Real estate investors whose income includes rental revenue, dividends or capital gains.
  

These individuals often have substantial deposits but may show low taxable income after deductions. Bank statement loans allow them to use their actual cash flow to qualify for mortgages.

Orlando Housing Market Overview

Pricing and Inventory Trends

The median sold price in Orlando in June 2025 was $395,402, with a price per square foot of $242, reflecting a 2.2 % increase compared to the previous year. Inventory stood at 5,807 homes for sale, up 2.3 % month over month, while 865 homes sold—down 2.1 %. About 63 % of homes sold below asking price. This data suggests a market that is gradually becoming more balanced, giving buyers some negotiating power without erasing sellers’ gains.

Rental Market and Investment Potential

Fair‑market rents across Florida average $1,601 for a two‑bedroom and $2,112 for a three‑bedroom unit. In Orlando specifically, rents are higher due to the tourism industry and a growing population. Two‑bedroom units often rent for $1,958, while three‑bedroom units command about $2,486. Rents rise even higher in neighborhoods close to theme parks, university campuses (University of Central Florida, Rollins College) and medical centers. For investors, these strong rents offer attractive cash flow, especially when leveraging bank statement loans that assess income based on deposits rather than W‑2s.

Economic Drivers and Self‑Employment

Orlando’s economy is anchored by world‑class tourism but increasingly diversified by healthcare, aerospace, defense and technology. Major employers include Walt Disney World, Universal Orlando Resort, Lockheed Martin, AdventHealth, Orlando Health and L3Harris. The presence of technology companies and startups at the Central Florida Research Park has fostered a growing tech community. Meanwhile, higher education institutions—UCF, Valencia College and Full Sail University—create demand for rentals and spin off entrepreneurial ventures. The city is also known for hosting conventions and events, supporting a network of event planners, caterers, entertainers and hospitality service providers. Many of these professionals work as freelancers or independent contractors, making bank statement loans particularly relevant.

Why Bank Statement Loans Are Ideal in Orlando

Accessibility Amid Affordability

At $395,402, Orlando’s median sold price is more attainable than in Miami or Fort Lauderdale. Self‑employed borrowers with strong cash flow can qualify for mortgages that reflect their deposit history rather than their tax returns. For example, a freelance videographer who deposits $15,000 per month but reports low taxable income can qualify for a home priced around $400,000 by using a bank statement loan. With a 20 % down payment, their mortgage payment may be lower than the rent for a similar property.

Strong Rental Demand and Investment Returns

The rental market in Orlando is buoyed by tourists, students, and healthcare and hospitality workers. Two‑bedroom units rent for about $1,958, and three‑bedroom units command $2,486. Investors can purchase duplexes or triplexes near Universal Boulevard, the UCF area or downtown Orlando and achieve robust cash flow. Bank statement loans allow investors to use projected rental income—reflected in their deposits—to qualify for larger loans. For instance, buying a $600,000 triplex with each unit renting at $2,200 could generate monthly income of $6,600, making the property cash‑flow positive even with a mortgage.

Entrepreneurial Culture and Gig Economy

Orlando’s workforce includes a large number of freelancers, entertainers, graphic designers, social media influencers and ride‑share drivers. Many choose the flexibility of contract work over traditional employment. This gig‑economy culture, combined with tourism‑driven jobs that may rely on seasonal income, makes it difficult for some residents to provide consistent W‑2 documentation. Bank statement loans recognize the stability in deposits from repeat gigs or business contracts, enabling these workers to qualify for mortgages.

Swift Closings in a Competitive Environment

While Orlando’s market is not as overheated as in the pandemic years, desirable properties still receive multiple offers. Bank statement loans can close quickly because they do not require extensive tax return analysis. Select Home Loans often completes these loans in three to five weeks, giving buyers a competitive advantage when speed matters.

Jumbo Loans for Luxury Homes

Orlando boasts high‑end communities like Lake Nona, Winter Park and Windermere, where home prices exceed $1 million. Bank statement loans can be structured as jumbo mortgages, enabling entrepreneurs and executives to purchase luxury homes based on their deposit history. This flexibility is valuable for professionals in entertainment, sports and technology who may have variable income but substantial cash flow.

Loan Requirements, Terms and Considerations

Credit Score and Down Payment

Most bank statement lenders require a minimum credit score of 620. Borrowers with scores above 660 may qualify for down payments as low as 10 %. Investment properties usually require 15–25 % down. Larger down payments reduce interest rates and improve approval odds.

Documentation and Expense Ratio

Borrowers must provide 12 or 24 months of consecutive bank statements. Statements should show consistent deposits; large or irregular deposits may require additional documentation. Lenders apply an expense factor (often 50 %) to calculate net income. Borrowers can sometimes negotiate a lower expense factor with profit‑and‑loss statements or CPA letters.

Debt‑to‑Income Ratios and Reserves

Bank statement loans typically allow higher debt‑to‑income (DTI) ratios than conventional loans, often up to 45–50 %. Borrowers must show reserves—commonly two to six months of mortgage payments—to demonstrate financial stability. Those seeking jumbo loans or purchasing multi‑unit properties may need additional reserves.

Interest Rates and Closing Costs

Rates for bank statement loans usually exceed those of conventional mortgages by 0.5–1.5 %. As of mid‑2025, borrowers may see rates from 7.5 % to 9 %. Closing costs include origination fees, underwriting fees, appraisal fees and potentially discount points. Borrowers should also watch for prepayment penalties; some lenders impose penalties that decrease over three to five years.

Pros and Cons of Bank Statement Loans in Orlando

Advantages

1. Inclusive for Self‑Employed Borrowers: Bank statement loans allow entrepreneurs and gig workers to qualify based on deposits rather than taxable income.
   
2. Higher Borrowing Capacity: Qualifying income is often higher when based on deposits, enabling borrowers to purchase more expensive homes or multi‑unit properties.
   
3. Fast Closings: Streamlined documentation leads to quicker approvals, helping buyers in competitive markets.
   
4. Flexibility in Property Types: Bank statement loans can finance primary residences, vacation homes, investment properties and luxury estates.
   
5. Potential for Portfolio Growth: Investors can use bank statement loans to build a portfolio, as each property’s cash flow is evaluated individually.

Drawbacks

1. Higher Interest Rates: Rates are higher than conventional mortgages, increasing overall borrowing costs.
   
2. Larger Down Payments: Borrowers usually need at least 10 % down; investment properties require more.
   
3. Detailed Documentation Review: Lenders scrutinize deposits and may ask for additional verification.
   
4. Significant Reserve Requirements: Having three to six months of reserves is often mandatory.
   
5. Limited Lender Options: Not all lenders offer bank statement loans; borrowers must find specialized providers.

Case Study: A Freelance Animator Buys in Lake Nona

“Jasmine,” a freelance animator who works with theme park companies and gaming studios, earns variable income but averages $12,000 in monthly deposits. She claims many deductions—travel, equipment, studio space—so her tax returns show only $50,000 in net income. Jasmine wants to purchase a $450,000 townhome in Lake Nona, an Orlando suburb known for its innovation hub and proximity to Medical City.

She contacts Select Home Loans for a bank statement loan. Jasmine provides 24 months of personal and business bank statements showing average deposits of $12,000. After a 50 % expense factor, the underwriter calculates her qualifying income at $6,000 per month. With a 680 credit score and a 15 % down payment ($67,500), Jasmine qualifies for a 30‑year fixed mortgage at 7.75 %. Her principal and interest payment is roughly $2,900 per month. HOA fees and insurance bring her total payment to about $3,200. When she considers that similar townhomes rent for over $3,000, she recognizes the value of ownership. Select Home Loans completes her loan in just over four weeks. Without a bank statement loan, Jasmine would likely have been denied due to her low taxable income.

Tips for a Smooth Approval Process

1. Organize Bank Statements: Keep personal and business accounts separate. Document all deposits and maintain consistent cash flow.
   
2. Monitor Credit: Pay bills on time, reduce credit card balances and avoid large purchases. Scores above 660 are advantageous.
   
3. Build Reserves: Aim for at least three to six months of mortgage payments in liquid assets.
   
4. Consult a CPA: Work with a certified public accountant to prepare profit‑and‑loss statements or letters explaining your business income and expenses.
   
5. Partner with an Experienced Lender: Choose a lender with expertise in bank statement loans and local market knowledge, such as Select Home Loans.
   

Why Choose Select Home Loans for Bank Statement Loans in Orlando?

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

Florida Roots and Local Insight

Select Home Loans is a Florida‑based mortgage company with a strong presence in Orlando. Their team understands local factors like property taxes, insurance requirements (including hurricane and flood coverage) and neighborhood differences. They can advise you on the best areas to purchase based on your budget and goals.

Dedicated Bank Statement Programs

Select Home Loans offers tailored programs for 12‑month and 24‑month bank statement loans. They provide options for personal or business account analysis and can structure loans for primary residences, second homes, investment properties and jumbo mortgages.

Fast and Transparent Closings

Borrowers praise Select Home Loans for efficient processing and clear communication. Because they specialize in non‑traditional loans, they streamline underwriting and often close loans within three to five weeks. Their transparency about rates, fees and potential prepayment penalties helps borrowers make informed decisions.

Support for Self‑Employed Clients

The company’s mission is to serve entrepreneurs, freelancers and small‑business owners. Their underwriters are adept at interpreting bank statements, understanding variable income and applying fair expense factors. They also provide guidance on how to prepare documentation and maintain the necessary reserves.

Client‑First Philosophy

From initial consultation to closing, Select Home Loans focuses on client satisfaction. Their loan officers answer questions promptly, help borrowers select the right loan product and coordinate with appraisers and title companies. Borrowers appreciate the personal attention and local expertise.

Conclusion: Seize Your Orlando Real Estate Opportunity

Orlando’s dynamic economy, moderate home prices and strong rental demand create excellent opportunities for self‑employed buyers and investors. Bank statement loans unlock these opportunities by qualifying borrowers based on their bank deposits instead of taxable income. Whether you’re a graphic designer wanting your first home near downtown or an investor seeking a duplex close to UCF, bank statement loans can provide the financing you need.

Select Home Loans stands ready to help you navigate the process. With deep Florida roots, specialized bank statement programs and a commitment to self‑employed borrowers, they provide personalized guidance and fast closings. Don’t let inconsistent income or low taxable earnings keep you from owning property in one of Florida’s most dynamic cities. Contact Select Home Loans today and take the next step toward your Orlando real estate goals.