Bank Statement Mortgage: Self-Employed Buyers in Pennsylvania and Florida

If you’re self-employed and your tax returns show low net income after deductions, a conventional mortgage underwriter will deny you — even if your business deposits $20,000 a month. A bank statement mortgage solves this by qualifying you on actual cash flow instead of taxable income. For Pennsylvania and Florida business owners, contractors, and consultants, this Non-QM product is often the only realistic path to homeownership or a refinance.

How Bank Statement Mortgages Work

Instead of W-2s and tax returns, a bank statement mortgage uses 12 or 24 months of bank statements to document income. The lender looks at your total deposits over the statement period and applies an expense factor to arrive at qualifying income. For business bank accounts, lenders typically credit 50% of gross deposits as income — reflecting that business accounts include expenses. For personal bank accounts, lenders typically credit 100% of deposits. A borrower depositing $180,000 annually into a business account would qualify on $90,000 of income. That same borrower depositing into a personal account would qualify on $180,000 — making the account structure a meaningful variable. The 24-month option generally produces a more stable income figure and is preferred by lenders for larger loan amounts. Most lenders require the business to have been operating for at least 2 years, evidenced by a business license or CPA letter.

Who Uses Bank Statement Mortgages in PA and FL

The typical bank statement borrower is profitable but tax-optimized. Construction business owners in Bucks and Montgomery County who write off equipment, vehicles, and subcontractors. Restaurant owners in Philadelphia and South Florida whose Schedule C shows minimal net income after cost of goods and labor. Consultants and freelancers who max out home office, travel, and software deductions. Real estate investors who also have W-2 income but whose rental portfolios create paper losses that drag down qualifying income. In Florida, retirees who sold a business and are now drawing from personal accounts benefit from the 100% personal account calculation. These borrowers are not financially weak — they are structurally disadvantaged by conventional underwriting, and the bank statement program corrects that mismatch.

Rates, Down Payment, and Credit Requirements

Bank statement mortgages are Non-QM products, meaning they carry a rate premium over conventional financing — typically 0.5% to 1.0% higher depending on LTV, credit score, and loan amount. Minimum credit scores generally start at 620, with better pricing at 680 and above. Down payment requirements range from 10% to 20% depending on the lender and loan size. Larger loan amounts (above $1 million) typically require 20–25% down. These are not subprime products — most bank statement borrowers have strong credit profiles and significant assets. The rate premium reflects the additional documentation risk from the lender’s perspective, not the borrower’s financial weakness.

How a Mortgage Broker Helps with Bank Statement Mortgages

Bank statement loans are Non-QM products not available at retail banks. Lena Polnet at Dynamic Funding Solutions has 28 years of mortgage experience and access to 100+ wholesale lenders, including multiple Non-QM specialists with different income calculation methodologies. The difference between a 50% and a 60% expense factor can mean qualifying for $50,000 more in loan amount. Lena provides same-day responses at (215) 364-7171 and is licensed in both Pennsylvania and Florida, which matters when a PA business owner is buying a Florida second home or investment property.

FAQ — Bank Statement Mortgage

Can I use bank statement income if I have a mix of W-2 and self-employment income?

Yes. Many lenders allow blended income — combining W-2 income documented conventionally with self-employment income documented via bank statements. The W-2 income is fully credited; the self-employment income runs through the bank statement calculation.

Do I need a CPA letter for a bank statement mortgage?

Most lenders require either a CPA letter confirming business ownership and self-employment status, or a business license dated at least 2 years prior. The letter does not need to verify income — it confirms the business exists and the borrower is the owner.

Is a bank statement mortgage available for investment properties?

Yes, though most bank statement programs are designed for primary residences and second homes. For pure investment properties, a DSCR loan — which qualifies based on rental income relative to debt service — is usually a better fit. Lena can evaluate both options for your scenario.

Talk to a Mortgage Specialist

Call Lena Polnet at (215) 364-7171 or visit dynamicfunding.net.

Dynamic Funding Solutions, Inc. — NMLS #17144 | Lena Polnet — NMLS #17225 | Licensed in Pennsylvania and Florida | Equal Housing Lender