Bank Statement Loans
in Michigan.
Your tax return says one thing. Your bank account says another. If you are self-employed and your write-offs are standing between you and a mortgage, the bank statement loan was built for exactly this situation. No tax returns. No W2s. Income verified from your actual deposits over 12 to 24 months.
A bank statement loan qualifies self-employed borrowers using 12 to 24 months of personal or business bank deposits instead of tax returns. If your tax return understates your actual income due to business deductions, this program looks at what actually moved through your accounts. Available for primary residences, second homes, and investment properties up to $1 million. Minimum 660 credit score. Interest-only payment options available.
The Self-Employed
Mortgage Problem
Self-employment is one of the most common reasons otherwise qualified buyers cannot get a conventional mortgage. Not because they cannot afford the payment -- but because their tax return does not reflect what they actually earn.
A business owner running $200,000 through their accounts every year might show $80,000 in taxable income after legitimate deductions. Conventional mortgage underwriting uses the $80,000. The actual $200,000 does not matter. The result is a pre-approval for a home they could easily afford, at a purchase price that does not come close to what they are actually looking at.
The bank statement loan solves this by asking a different question: not what did you report to the IRS, but what actually moved through your accounts? Twelve to twenty-four months of bank statements, averaged monthly, becomes your qualifying income. Your write-offs stay intact and your home purchase moves forward.
In Northern Michigan this matters more than it might in a salaried-worker market. The region has a significant population of business owners, contractors, seasonal workers, hospitality operators, tourism-adjacent entrepreneurs, and tradespeople -- people who have built real financial lives that do not fit neatly into a W2. The bank statement program exists for this group.
What This Program Actually Requires
- Self-employed for at least 2 years -- confirmed via business license, CPA letter, or other documentation
- Minimum 660 credit score
- 12 to 24 months of personal or business bank statements
- Down payment of typically 10% or more
- Sufficient average monthly deposits to support the mortgage payment
- Reserves -- typically 3 to 6 months of payments in verifiable liquid accounts
- Property must be a primary residence, second home, or investment property
Interest-Only Option -- What It Is and When It Makes Sense
The bank statement program includes an interest-only payment option, which allows borrowers to pay only the interest portion of the mortgage for an initial period. This results in a lower monthly payment during that period compared to a standard principal-and-interest payment.
For business owners who want to keep more cash in their business during peak growth periods, or buyers managing irregular income cycles, an interest-only structure can be a practical tool. It is not a forever strategy -- the loan recasts after the interest-only period ends and standard principal plus interest payments begin -- but for the right borrower it provides meaningful early flexibility.
How Income Is Calculated --
Personal vs. Business Statements
The calculation method depends on whether you use personal or business bank statements.
Personal Bank Statements
When using personal statements, the lender typically counts 100% of eligible deposits as income. Transfers between accounts and non-income deposits are excluded. Best for self-employed borrowers who deposit business revenue directly into personal accounts.
Business Bank Statements
Business statements use an expense factor -- typically around 50% -- applied to gross deposits to account for business operating costs before arriving at qualifying income. Best for business owners who run revenue through dedicated business accounts and pay themselves separately.
Actual expense factors and calculation methodology may vary by lender guidelines. We walk through the specific calculation for your account situation when we talk.
Who Uses Bank Statement Loans
in Northern Michigan
Six buyer profiles where this program makes the most sense.
Contractors & Tradespeople
Builders, electricians, plumbers, and other trades who operate as sole proprietors or small LLCs with strong revenue and significant deductions.
Tourism & Hospitality Operators
Rental property owners, outfitters, guide services, and seasonal businesses with strong cash flow that does not always show up on a return.
Real Estate Investors
Investors with multiple properties whose depreciation and expense deductions reduce taxable income well below actual cash flow.
Freelancers & Consultants
1099 workers, consultants, and remote professionals with steady client income who lack W2 documentation for conventional qualification.
Small Business Owners
Retail, service, and professional business owners whose S-corp or LLC distributions and write-offs compress taxable income substantially.
Agricultural & Farm Operations
Farm operators and agricultural businesses in Northern Michigan whose income structure and deduction profile make conventional qualification difficult.
Bank Statement Loan vs.
Conventional -- What Changes
The flexibility comes with trade-offs worth understanding before you decide.
How the Bank Statement Loan
Process Works
Simpler than most self-employed buyers expect -- the documentation is different, not harder.
Gather Your Bank Statements
Pull 12 to 24 months of personal or business bank statements -- whichever account your income flows through most consistently. We tell you upfront which statement type will produce the stronger qualifying income for your specific deposit pattern.
Income Calculation Review
We run the deposit analysis upfront -- totaling eligible deposits, applying any expense factor for business accounts, and arriving at a monthly qualifying income figure. This happens before you go under contract so you know exactly what purchase price you can support.
Self-Employment Verification
We confirm 2+ years of self-employment through a business license, CPA letter, or other acceptable documentation. This verifies the self-employed status that makes you eligible for the bank statement program.
Pre-Approval
With income calculated and self-employment confirmed, we issue a bank statement pre-approval. We also confirm whether interest-only is the right structure for your situation or whether standard principal and interest better fits your long-term plan.
Property Appraisal and Underwriting
The property is appraised at standard value. Underwriting reviews the bank statement income documentation package. Bank statement loans are non-QM products and go through specialized underwriting -- we manage the process and keep things moving.
Close on Your Terms
You close on a primary residence, second home, or investment property with income based on what you actually deposited -- not what your write-offs allowed your tax return to show. Your deductions stay. Your home purchase moves forward.
Frequently Asked Questions
Self-Employed and Ready
to Buy in Michigan?
Your tax return does not have to be the end of the conversation. If you have consistent deposits and two years of self-employment history, the bank statement program may be the path forward. Call, text, or fill out the form and we will run the numbers.
Kirby and Angie Mortgage Loan Team | Union Home Mortgage | NMLS #2229229 | Angie Anderson NMLS #1999286 | Kirby Slocum NMLS #680817 | Licensed in Michigan, Ohio, and Indiana | Equal Housing Lender. Bank statement mortgage program is a non-QM loan product. Program availability, credit score requirements, income calculation methodology, down payment requirements, maximum loan amounts, and interest rate pricing subject to change without notice. Self-employment of at least 2 years required. All loans subject to credit approval and underwriting review. Information provided is for educational purposes and does not constitute a loan commitment or guarantee of financing.
