Bank Statement Loans (Non-QM) — Star Financial

Qualify using 12–24 months of bank statements—not tax returns. Perfect for self-employed borrowers whose write-offs reduce taxable income but not true cash flow.

Who This Helps

• Self-employed owners, sole props, freelancers, gig workers, realtors, consultants
• Borrowers paid via business deposits rather than W-2 pay stubs

Key Benefits

• No tax returns required (in many programs)
• 12 or 24 months personal or business statements accepted
• Common-sense income using deposit analysis and an expense factor
• Purchases, rate/term refi, and cash-out options
• Primary residence, second home, and many investment properties (program-specific)

How Income Is Calculated (Typical)

• Personal statements: Qualifying income = eligible deposits averaged over 12/24 months
• Business statements: Eligible deposits × expense factor (e.g., 50% default)
  • CPA/EA letter can support a custom expense factor when justified
• Some programs allow mixed sources or require business ownership % verification

Exact method varies by investor. We’ll run side-by-side scenarios to confirm best fit.

Basic Eligibility (Varies by Program)

• 12 or 24 months of consecutive statements (PDFs, all pages)
• FICO/LTV/reserves per matrix; recent housing history preferred
• Seasoning/sourcing for large deposits; clean business documentation

Documents You May Need

• 12–24 months bank statements (personal and/or business)
• Business license, CPA/EA letter, or other proof of self-employment
• Photo ID, HOI, HOA docs (as applicable), purchase contract/payoff info
• P&L (sometimes requested to support expense factor)

What to Consider

• Non-QM pricing can differ from agency loans
• Cash-flow stability matters—unusual/one-time deposits may be excluded
• Reserves/overlays may be higher than traditional QM programs

How It Works

1. Consult & pre-screen (goals, ownership %, deposit patterns)
2. Pre-qual using statement analysis and program rules
3. Underwrite (upload statements, appraisal, title)
4. Close — purchase or refinance with terms aligned to your plan

Star Financial • NMLS 1429 • Serving CA, TX & FL
Disclosures: Non-QM program; not a commitment to lend. Eligibility, rates, and terms subject to change and full underwriting approval. All loans subject to credit, income/asset verification, and property guidelines. Consult your tax advisor.