Located on Florida’s Gulf Coast, St. Petersburg is famous for its sunshine, award‑winning beaches and vibrant arts scene. “St. Pete,” as locals call it, boasts museums like the Salvador Dalí Museum, a bustling downtown waterfront and a thriving culinary culture. The city forms part of the Tampa Bay area but maintains its own identity—more laid‑back than Tampa yet equally dynamic. As of June 2025, the median sold price of a home in St. Petersburg was $430,570, with a median price per square foot of $329. Interestingly, home prices have declined by 2.4 % year over year, signaling a shift toward a buyer’s market. Inventory stood at 2,944 homes for sale, and 370 homes sold (down 14.4 %), with 71 % of homes selling below asking price.
For self‑employed residents of St. Petersburg—artists, musicians, small‑business owners, gig economy workers and real estate investors—the traditional mortgage process can be restrictive. Bank statement loans offer an alternative by basing the approval on bank deposits rather than W‑2s or tax returns. This article explores how these loans work, why they are particularly valuable in St. Petersburg’s market, and why Select Home Loans should be your lender of choice.
What Are Bank Statement Loans?
Bank statement loans are mortgage programs designed for borrowers whose income is difficult to verify using standard documentation. Instead of requiring W‑2s or tax returns, lenders evaluate 12 or 24 months of bank statements to calculate average monthly deposits. After applying an expense factor—often around 50 %—the resulting figure is used to determine qualifying income. This method allows entrepreneurs, freelancers and contractors to secure financing based on actual cash flow rather than taxable income.
Key Components
- Documentation: Borrowers submit 12–24 months of consecutive personal or business bank statements.
- Credit Requirements: Minimum credit scores of around 620 are typical. Borrowers with scores above 660 may qualify for down payments as low as 10 %.
- Down Payments and Reserves: Lenders require 10–30 % down and two to six months of PITI reserves.
- Interest Rates: Rates are typically 0.5–1.5 % higher than conventional mortgages.
- Property Types: Borrowers can finance primary residences, second homes, investment properties and even luxury or multi‑unit homes.
Who Benefits?
Bank statement loans are ideal for:
- Artists and Creative Professionals: painters, sculptors, actors, musicians and photographers.
- Small‑Business Owners: café owners, boutique retailers, gallery operators and microbrewers.
- Gig Workers and Freelancers: rideshare drivers, writers, designers, independent contractors and digital marketers.
- Medical and Legal Professionals: private practice doctors, chiropractors, therapists and attorneys.
- Real Estate Investors: property managers, landlords and developers.
These individuals often show lower taxable income due to deductions but have substantial bank deposits. Bank statement loans recognize their true earning power.
St. Petersburg’s Housing Market: Trends and Insights
Price Trends and Inventory
As of June 2025, the median sold price in St. Petersburg was $430,570, with a price per square foot of $329. The city experienced a 2.4 % decline in year‑over‑year prices, shifting it into a buyer’s market. Inventory totaled 2,944 homes for sale, and 370 homes sold (down 14.4 % from the previous period), with 71 % of homes selling below their asking price. This combination of declining prices and high percentages of below‑ask sales suggests buyers have negotiating power—a rare opportunity in Florida’s larger markets.
Rental Market and Investment Potential
While specific fair‑market rent (FMR) data for St. Petersburg is limited, statewide rents average $1,601 for a two‑bedroom apartment and $2,112 for a three‑bedroom unit. In St. Petersburg’s desirable neighborhoods like Downtown, Kenwood and Old Northeast, rents tend to run higher—often $1,800–$2,300 for two‑bedroom units and $2,400–$3,000 for three‑bedroom homes. Investors can find solid cash‑flow opportunities, particularly in multi‑unit properties. Bank statement loans, which consider deposits and projected rental income, enable self‑employed individuals to qualify for these investments.
Economic Drivers and Self‑Employment Culture
St. Petersburg’s economy is fueled by tourism, healthcare, marine science, financial services and a robust arts community. The presence of companies like Raymond James Financial and Johns Hopkins All Children’s Hospital provides stable employment. The city hosts events such as the St. Pete Grand Prix, drawing visitors and supporting hospitality businesses. Many residents run small retail shops, restaurants, art galleries or operate as freelancers. The local government supports entrepreneurship through programs like the St. Petersburg Greenhouse, which offers workshops and resources for startups. Bank statement loans cater to this diverse and entrepreneurial workforce.
Why Bank Statement Loans Are Ideal in St. Petersburg
Buyer’s Market Advantage
A 2.4 % decline in home prices and a high percentage of homes selling below asking price (71 %) signal a buyer’s market in St. Petersburg. Buyers who can close quickly have leverage to negotiate price reductions or favorable terms. Bank statement loans often close faster than traditional mortgages because they circumvent the need for tax-return verification. Select Home Loans, for example, can often finalize these loans in three to five weeks. This speed helps buyers seize opportunities before competition heats up again.
Affordable Entry Compared with Other Florida Cities
At $430,570, St. Petersburg’s median sold price is similar to Tampa’s but significantly lower than Miami or Fort Lauderdale. Self‑employed buyers can purchase homes or condos with manageable monthly payments, using bank statement loans to qualify based on their deposit history. For instance, purchasing a $430,000 townhome with 20 % down and an 8 % interest rate results in a principal and interest payment around $2,520. With local rents near or above this level, owning a property can be more cost-effective than renting.
Strong Cash‑Flow Potential for Investors
St. Petersburg’s rental demand is driven by its popularity among young professionals, retirees and seasonal visitors. The downtown waterfront, arts district and beach proximity attract tenants willing to pay premium rents. Multi‑unit properties, such as duplexes and triplexes in Kenwood or Central Oak Park, can generate monthly rent far exceeding mortgage payments. Bank statement loans, which account for projected rental income, make it easier for investors to qualify for financing.
Support for the Creative Community
St. Petersburg has cultivated a nationally recognized arts scene with monthly art walks, numerous galleries and events like the SHINE Mural Festival. Many artists and creative entrepreneurs have irregular income streams. Bank statement loans acknowledge their variable cash flow and allow them to purchase homes or studios based on deposits rather than tax returns. This flexibility helps preserve the city’s creative culture by enabling artists to put down roots.
Accessibility for Retirees and Remote Workers
The city’s pleasant climate and affordability attract retirees and remote workers who may have non‑traditional income sources—such as pension withdrawals, investments, freelance contracts or small online businesses. Bank statement loans can qualify these individuals based on their deposits, making homeownership more attainable.
Loan Requirements, Terms and Considerations
Credit Scores and Down Payments
Most lenders require a minimum credit score of 620. Borrowers with scores above 660 may qualify for down payments as low as 10 %. Investment properties typically require 15–30 % down. Strong credit scores can also result in better interest rates.
Documentation and Expense Factor
Borrowers must provide 12–24 months of consecutive bank statements. Underwriters calculate average monthly deposits and apply an expense factor—often 50 %—to estimate net income. Borrowers can sometimes negotiate a lower expense factor by providing profit‑and‑loss statements or CPA letters. It’s crucial to keep personal and business accounts separate and avoid unexplained large deposits.
Debt‑to‑Income Ratios and Reserves
Bank statement loans generally allow debt‑to‑income (DTI) ratios up to 45–50 %. Borrowers must show two to six months of mortgage reserves. Those seeking jumbo loans or purchasing multiple properties should prepare for higher reserve requirements.
Interest Rates and Fees
Interest rates on bank statement loans are typically 0.5–1.5 % higher than conventional loans. As of mid‑2025, rates may range from 7.5 % to 9.5 %. Closing costs include origination fees, underwriting fees and appraisal fees. Some loans have prepayment penalties that decline over three to five years.
Pros and Cons of Bank Statement Loans in St. Petersburg
Advantages
- Inclusion for Self‑Employed Borrowers: Entrepreneurs, freelancers and artists can qualify based on deposits rather than taxable income.
- Fast Approvals: Less reliance on tax returns speeds up underwriting and closing, giving buyers leverage in a buyer’s market.
- Flexibility for Diverse Property Types: Bank statement loans can finance primary residences, second homes, investment properties and luxury homes.
- Higher Borrowing Capacity: Using gross deposits often increases qualifying income, allowing borrowers to purchase more expensive properties.
- Portfolio Expansion: Investors can grow their real estate portfolios because each property’s cash flow is evaluated individually.
Drawbacks
- Higher Interest Rates: Rates are higher than those of conventional mortgages.
- Larger Down Payment: Borrowers typically need 10–30 % down, depending on credit and property type.
- Reserve Requirements: Lenders require significant reserves—two to six months of PITI.
- Stringent Statement Reviews: Underwriters scrutinize deposits and may demand additional documentation.
- Limited Lender Availability: Not all lenders offer bank statement loans; borrowers must work with specialized providers.
Real‑World Example: An Artist Buys a Bungalow Near Downtown
“Lena,” a professional painter and muralist, lives in St. Petersburg. She earns income from commissions, gallery sales and teaching workshops. Her monthly deposits average $9,000, but she claims significant deductions—studio rent, supplies, travel—reducing her taxable income to $30,000. Lena wants to purchase a $380,000 bungalow in the Historic Kenwood neighborhood, known for its artsy vibe and Craftsman homes.
Lena approaches Select Home Loans for a bank statement loan. She provides 24 months of personal and business bank statements showing average deposits of $9,000. The underwriter applies a 50 % expense factor, giving her a qualifying income of $4,500 per month. Lena has a 675 credit score and puts 15 % down ($57,000). She secures a 30‑year fixed loan at 7.85 %. Her principal and interest payment is roughly $2,300 per month. Considering that similar homes rent for $2,500–$2,800, Lena recognizes that owning is financially advantageous and provides long‑term stability. Select Home Loans approves her loan in five weeks, enabling her to become a homeowner in the neighborhood she loves.
Tips for a Smooth Loan Approval
- Maintain Clear Financial Records: Separate personal and business accounts. Keep invoices and receipts to document deposits.
- Build Credit: Pay bills on time and manage credit cards to maintain a score above 660.
- Establish Reserves: Save at least three to six months of mortgage payments to meet reserve requirements.
- Consult a CPA: A certified public accountant can prepare profit‑and‑loss statements or letters to support your income calculations.
- Partner with a Specialized Lender: Choose a lender experienced in bank statement loans and the St. Petersburg market, such as Select Home Loans.
Why Select Home Loans Is the Best Choice in St. Petersburg
Website: SelectHomeLoans.com
Phone: 888-550-3296
Local Expertise and Cultural Appreciation
Select Home Loans is based in Florida and understands St. Petersburg’s unique neighborhoods, property values and insurance considerations (windstorm and flood coverage). Their loan officers appreciate the city’s creative community and work with artists and entrepreneurs regularly, ensuring that their loan programs suit these clients.
Flexible Bank Statement Programs
Select Home Loans offers 12‑month and 24‑month bank statement programs and can evaluate personal or business accounts. They provide financing for primary residences, second homes, investment properties and jumbo loans. Borrowers can choose fixed or adjustable rates and interest‑only options.
Efficient Closings and Clear Communication
Because they specialize in non‑traditional loans, Select Home Loans streamlines underwriting and often closes loans within three to five weeks. Borrowers praise them for transparent communication, competitive rates and the willingness to explain every detail of the loan process.
Commitment to Self‑Employed Clients
Select Home Loans was founded to support entrepreneurs and self‑employed professionals. Their underwriters understand the variability of income for artists, freelancers and small‑business owners. They apply realistic expense factors and help clients structure their finances to maximize qualifying income.
Personalized Service
From pre‑qualification through closing, Select Home Loans offers personalized guidance. Their team helps clients gather documentation, understand reserve requirements and choose the right loan product. They also coordinate with appraisers and title companies to ensure a smooth closing.
Conclusion and Next Steps
St. Petersburg’s buyers’ market and supportive entrepreneurial environment create exceptional opportunities for self‑employed buyers and investors. Bank statement loans allow these individuals to qualify based on actual cash flow rather than taxable income, enabling them to purchase homes or investment properties even with variable earnings. With home prices moderating and a high percentage of homes selling below asking price, now may be an ideal time to buy.
Select Home Loans stands out as the top lender for bank statement loans in St. Petersburg. Their deep local knowledge, flexible programs and dedication to self‑employed borrowers make them a trusted partner. Whether you are an artist seeking a historic bungalow, a restaurateur purchasing a condo or an investor targeting a duplex near Central Avenue, Select Home Loans can help you secure financing quickly and confidently. Contact them today to explore your options and take the next step toward homeownership or investment in St. Petersburg.
Disclaimer: Market data and lending guidelines are accurate as of mid‑2025. For personalized advice, consult licensed mortgage professionals and financial advisors.
