EP.24 - Top 5 Reasons To Get a Bank Statement Loan In 2026

Self-employed and getting denied by traditional banks? In this episode, Ryan Marks with SEI Mortgage explains the top 5 reasons to consider a bank statement loan in 2026. Learn how business owners, entrepreneurs, 1099 earners, and real estate investors may qualify using bank statements instead of traditional tax returns.

If you are self-employed, own a business, invest in real estate, or have been told no by a traditional bank because your tax returns do not show your real income, a bank statement loan may be worth exploring.

For more tools, resources, and mortgage education, visit www.seimortgage.com
And if you want to talk through whether a bank statement loan could work for your situation, get in touch with me and the SEI Mortgage team today at:

Visit www.seimortgage.com
or call 1-800-401-1363 to learn more.

 00:00 — Why banks say no to self-employed borrowers
 00:42 — The real problem with tax return income
 02:10 — How bank statement loans actually work
 04:05 — Personal vs. business bank statements explained
 06:20 — Down payments, rates, and loan structure
 08:10 — Who this loan is actually for
 09:30 — How to check eligibility with SEI Mortgage 

 #BankStatementLoan
 #BankStatementMortgage
 #SelfEmployedMortgage
 #NonQM
 #NonQMLoans
 #MortgageTips
 #SelfEmployed
 #BusinessOwner
 #Entrepreneur
 #RealEstateInvesting
 #MortgageBroker
 #HomeLoans
 #NoTaxReturnMortgage
 #1099Income
 #InvestorLoans
 #SEIMortgage
 #RyanMarks
 #MortgageEducation
 #HomeBuying
 #AlternativeMortgage 

Transcript

SPEAKER_00 0:00

If you're self-employed and the bank said no, it's not your income, it's the system. We're gonna break down the top five reasons why you would utilize a bank statement loan if you're self-employed. Let's get into it. Welcome back to another episode. If you're new to the channel, we'd love the opportunity for you to like and subscribe. It helps keep this little engine moving. And for those of you returning, we really appreciate all of your support and hopefully you'll get a few nuggets out of today's episode. Coming in at number five, your write-offs don't work against you. Traditionally, when you're using a conventional loan, you have to provide one, if not two years of your completed filed tax returns, which is often reflecting much lower than what your actual deposits were in your bank account. The bank statement loan uses an expense factor in order to derive what your actual income is that's used for qualifying for your home. Coming in at number four, that means you qualify for what you actually earn. So for example, we had a client who's averaging$25,000 in deposits on a monthly basis, but his gross adjusted net, reflecting on his tax returns after all of his legal deductions taken was$40,000. So if you were to take$40,000 divided out over 12 months, that's just over$3,300 in qualifying income and at a debt-to-income ratio of up to$50 or 55% in cases of FHA, that's going to limit you on what you can qualify for versus an average of$25,000 a month, even at a 50% expense factor, meaning we're going to eliminate half of what that income is, meaning that we're going to remove half of that income on the$25,000 deposit. The difference in monthly qualifying income is substantial. Coming in at number three, the interest rates on bank statement loans are much lower than you think. On average, a bank statement loan is 0.125 to 0.375 higher than the average conventional conforming loan. So if you were to actually take what your income is on your tax returns versus what your income is on your bank statement loan, still utilizing some of the great standard products like a 30-year fix and adjustable rate mortgage, you can also utilize interest-on payments on the bank statement loan. The interest rate is very close and almost catching up to matching what the current conforming conventional limits are in today's market. Coming in at number two, bank statement loans are built for business owners. If you're looking to purchase your property maybe in an LLC or a corporation, it's typically very difficult to qualify to put that vesting in anything other than individual or maybe a family trust, where the bank statement alone welcomes the opportunity if you want to vest your property in an entity or keep it as individual or put it in a family trust. And coming in at number one is you can use personal bank statements or business bank statements in order to qualify and derive your income. So what that means is let's say you're a sole proprietorship and you don't even have a business bank account set up, we can still utilize your most recent 12 or 24 months bank statements and derive what your qualifying income is from a personal bank statement if you do not have a business bank account. So in addition to that, if you have not filed your most recent tax returns, depending on where you are in the year, typically you cannot use any of that income when going with a traditional conventional loan because that income has not been filed to the IRS. Whereas the bank statement loan is going to use your actual income that you are currently in over the most recent 12 months. So why that's so powerful is you may have recently started a business and now that business is doing very well, but you have not filed that income yet. So you don't have the ability to use it, where the most recent 12 months bank statements is going to show a true picture of how your business is currently performing, in addition to utilizing the expense factor in order to derive the most income available to qualify for your loan. So on the bank statement loan, you can go as low as a 10% down payment. There is no mortgage insurance if you're putting less than a 20% down payment. So just to recap, the bank statement loan offers as low as a 10% down payment on a primary residence. You can utilize an interest-only payment, an adjustable rate mortgage, a standard fixed program option, personal bank statements, business bank statements, the ability to invest in an entity like an LLC or a corporation. And best part of all, it's going to show you the true picture of what your income actually is for your line of work versus what your tax returns are saying. For more great tips and resources, feel free to head over to SCIMortgage.com. And if you're curious about if the bank statement loan is a good product for you, we'd welcome the opportunity to connect with us. Feel free to reach out. And until then, remember to let your income work smarter, not harder. We'll see you on the next one.