For home buyers and homeowners
Bank Statement Loans in Michigan
Bank statement loans are for business owners, freelancers and the self-employed whose tax returns, after write-offs, show less income than the business brings in. Rather than W-2s or tax returns, you can use 12 to 24 months of bank statements to qualify.
- No credit pull to talk
- Licensed mortgage broker, NMLS 2041154
Bank Statement Loan
Key benefits
Deposits Instead of Tax Returns
Twelve or 24 months of bank deposits document your income.
Write-Offs Stay Write-Offs
Deductions that lower your taxable income do not lower the deposits a lender averages.
Loan Amounts Above the Limit
Some programs lend above the $832,750 conforming limit.
Bank statement against a conventional self-employed file
A good accountant lowers your taxable income, which is exactly what a conventional lender reads. This is the loan for people whose tax return does not look like their bank account.
| How you are judged | Bank statement | Conventional |
|---|---|---|
| The document that decides it | Twelve or twenty-four months of deposits. | Two years of personal and business tax returns. |
| What write-offs do to you | Nothing directly. Deposits are the measure, with an expense factor applied. | Every deduction lowers the income you can qualify on. |
| How the income figure is built | Average deposits, reduced by an expense factor the lender sets, prorated to your ownership share. | Net profit from the returns, averaged, with some add-backs. |
| Time in business expected | Usually two years, occasionally less with a strong file. | Two years, documented. |
| What the file lives or dies on | Clean, consistent deposits that match the story you are telling. | A tax return that shows enough profit. |
| Cost of the flexibility | Priced above conventional, and a larger down payment is normal. | Usually lower pricing, if you can qualify. |
Estimate my income from deposits
Guidelines
Guidelines for this loan
What bank statement lenders usually look at. Each lender sets its own version, so treat these as a starting point.
Bank Statement Loan Calculator
Self-employed income is qualified from deposits, not tax returns. Enter your average monthly deposits to see the income a bank statement program would credit you and the purchase price it supports.
Your deposits
The starting figures are an example: replace each one with your own. Use the average of all business deposits across the statement period. Transfers between your own accounts and one-time non-revenue deposits are normally backed out by the underwriter.
The loan
About 1.5% of the price at Michigan’s statewide median homestead rate, the year after the sale. Get the published rate for an address
Bank statement programs are non-QM. Guidelines, expense factors and DTI limits are set by each lender, so treat this as a planning range rather than a decision. The price is a ceiling, not a target. The year after a Michigan home sells, its taxable value resets to half of the assessor's market value, so the seller's tax bill is not your tax bill. Use the new owner’s tax figure: get the published rate for an address.
- Price at your DTI limit
- $0
- Loan amount at that price
- $0
- Total monthly payment
- $0
- Principal & interest
- $0
- Taxes & insurance
- $0
Deposits are credited at the expense factor shown, then prorated to your ownership share.
Estimates only, for illustration. Not a loan commitment, an offer of credit, or a rate quote. Actual figures depend on underwriting, credit, income, assets, appraisal and property eligibility. Align Lending LLC, NMLS #2041154, is an independent mortgage broker and does not lend directly. Equal Housing Opportunity.
Official sources
Check the rules at the source
Program guidelines change. These are the official pages we check them against.
Questions about this loan
If yours is not here, ask it on the call. There are no dumb questions.
How long does the business need to have run?
Most bank statement lenders look for about two years of self-employment, and some accept less when you did the same work before you went out on your own. They also read the deposit pattern: steady monthly deposits are easier to work with than a few large ones, and a deposit that is not business income, such as a transfer between your own accounts or a loan, is backed out.
How do you work out my income from deposits?
The lender averages your monthly deposits over 12 or 24 months, takes off an expense factor on business-account deposits, and counts your ownership share of the business. The calculator above shows each step.
Can I use personal statements, or do they have to be business?
Either can work. Business-account deposits usually have an expense factor taken off; personal-account deposits are often counted in full, depending on the lender. Transfers between your own accounts do not count as income.
Are there restrictions on the type of property?
They can be used for a primary home, second home or investment property. Each lender sets its own limits on property types, such as condos, acreage or mixed-use buildings.
Does my credit have to be perfect?
No. Bank statement lenders set their own score minimums, and they read the file around the score: how long the business has run, whether deposits arrive steadily or in a few large lumps, and whether the statements match the business you describe. A lower score can narrow the choice of lenders and change the pricing.
Self-employed and not sure where to start? See how a self-employed homebuyer plan works. The way your income gets reviewed is a documentation question, not a verdict.
What our clients say
Can’t say enough great things about Samantha and her team at Align Lending! Highly recommend
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
I highly recommend Align Lending to anyone looking for a mortgage broker in Southeast Michigan. The team was knowledgeable, responsive, and easy to work with.
Individual experiences. Results vary.
Ask Samantha whether this loan fits
Bring 12 or 24 months of business bank statements. Samantha will estimate the income they support and compare it with what your tax returns show.
- 1
Tell us what you are trying to do
Not what product you want. What you are actually trying to accomplish.
- 2
We look at your situation
Samantha works out what matters most for you specifically.
- 3
You leave with a plan
Your options, the tradeoffs, and your next step. No obligation to go further.
Align Lending LLC, NMLS #2041154, is a mortgage broker. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. Program guidelines on this page are general and change over time; they are not a credit decision, a preapproval, a commitment to lend, or an offer of credit. Approval depends on your full application, the property and the lender's current guidelines.
