Bank Statement Loan Pennsylvania — Mortgage for Self-Employed Borrowers

Dynamic Funding Solutions helps self-employed borrowers, business owners, and real estate investors access bank statement loans across Pennsylvania. Lena Polnet — NMLS #17225, 28+ years in mortgage lending — specializes in Non-QM and alternative documentation programs. Call (215) 364-7171 for a same-day review.

What Is a Bank Statement Loan?

A bank statement loan is a Non-QM mortgage that replaces traditional income documentation — W-2s and tax returns — with 12 or 24 months of personal or business bank statements. Instead of using taxable income (which is often reduced by legitimate business deductions), the lender calculates qualifying income from actual cash deposits flowing through the borrower’s account. For business bank statements, lenders typically apply an expense factor (commonly 50% for sole proprietors, varying by industry) to arrive at a net qualifying income. For personal bank statements, deposits are averaged directly. This program is specifically designed for borrowers whose tax returns do not reflect their true earning capacity — a common situation for contractors, business owners, and professionals who maximize deductions.

Who Qualifies in Pennsylvania?

Bank statement loan programs in Pennsylvania serve a broad range of self-employed professionals. Contractors and tradespeople whose gross revenue far exceeds their Schedule C net income are strong candidates. Restaurant owners, retail operators, and small business proprietors with consistent deposit histories qualify based on revenue flow rather than reported profit. Freelancers, consultants, and gig workers with variable monthly income use 24-month averaging to smooth seasonal fluctuations. Medical and dental practice owners, real estate investors who file heavy depreciation, and attorneys or CPAs running their own firms routinely access this program. The key requirement is two or more years of documented self-employment and a consistent, verifiable deposit history — the deposits tell the story that the tax return cannot.

Requirements and Process

Most bank statement loan programs require a minimum credit score of 620–660, with better rates above 700. Down payment is typically 10–20% depending on loan amount and credit profile. Borrowers must document at least 24 months of self-employment via a business license, CPA letter, or other verification. The lender reviews 12 or 24 months of bank statements (business, personal, or both) and calculates a monthly income figure. Loan amounts up to $3 million or more are available through some Non-QM lenders. Dynamic Funding Solutions sources bank statement programs through 100+ wholesale Non-QM lenders, providing access to multiple underwriting overlays and rate tiers. Closings typically run 21–30 days for purchase transactions.

FAQ — Bank Statement Loans in Pennsylvania

Can I use business bank statements instead of personal statements?

Yes. Most Non-QM programs allow business bank statements, personal bank statements, or a combination. Business deposits are discounted by an expense factor (typically 50%, though this varies by lender and business type) to determine qualifying income. If your business has lower overhead than the standard factor suggests, some lenders accept a CPA expense letter to use a custom ratio. Personal statement programs average 100% of net deposits with no expense factor applied.

How do lenders calculate my income from bank statements?

The lender adds up all qualifying deposits over 12 or 24 months, applies the expense factor if using business statements, and divides by the number of months to arrive at a monthly qualifying income figure. That figure is then used to calculate your debt-to-income ratio against the proposed mortgage payment and other monthly obligations. Large one-time deposits (asset sales, insurance proceeds, transfers) are typically excluded from the calculation.

Does a bank statement loan cost more than a conventional mortgage?

Bank statement loans are Non-QM products, so rates are generally 0.5–1.5% higher than comparable conventional financing — the premium reflects the documentation flexibility, not risk to the borrower. For self-employed borrowers who cannot qualify conventionally despite strong income, the rate difference is often worth the access to financing. Dynamic Funding Solutions compares programs across multiple Non-QM lenders to find the most competitive rate for each borrower’s profile.

Dynamic Funding Solutions, Inc. — NMLS #17144. Lena Polnet — NMLS #17225. Licensed mortgage broker in Pennsylvania. This page is for informational purposes. All loan programs subject to qualification, lender approval, and market conditions.