At Indigo Mortgage, we understand how challenging it can be for self-employed borrowers to qualify for a traditional mortgage. Standard loans often require tax returns to verify income, but for many business owners, freelancers, and contractors, those documents may not reflect their true earning potential due to business expenses and tax deductions. That’s why we offer an excellent alternative: the Bank Statement Loan.

A Bank Statement Loan allows borrowers to use their actual income as shown in their bank statements rather than their tax returns. This flexible option can open the door to homeownership for many individuals who don’t fit the traditional lending mold.

How Does a Bank Statement Loan Work?

Instead of requiring W-2s or tax returns, a Bank Statement Loan uses 12 to 24 months of personal or business bank statements to verify your income. Here’s what’s typically needed:

• Income Verification: 12 to 24 months of bank statements to show your cash flow.
• Credit Score: A score of 660 or higher.
• Loan-to-Value (LTV): You can borrow up to 80% to 90% of the home’s value, depending on your credit score.
• Self-Employment History: You must have been self-employed for at least two years.

While the interest rates for Bank Statement Loans are slightly higher than traditional loans, they provide unmatched flexibility for borrowers who can’t rely on tax returns to verify their income.

Who Benefits from a Bank Statement Loan?

This type of loan is ideal for:

• Small Business Owners – Entrepreneurs whose tax returns reflect lower income due to legitimate business deductions.
• Freelancers and Contractors – Professionals who earn variable income but have steady bank deposits.
• Commission-Based Professionals – Realtors, sales agents, or consultants whose earnings fluctuate month-to-month.
• Retirees with Large Assets – Individuals with significant savings or asset balances but minimal taxable income.
• Seasonal Workers – Those who make most of their income during certain parts of the year.
• Real Estate Investors – Investors who may not have traditional W-2 income but can show consistent cash flow.

If you’ve ever been denied a mortgage because your tax returns didn’t show enough income, a Bank Statement Loan may be your key to homeownership.

Why Choose Indigo Mortgage?

At Indigo Mortgage, we’ve been a trusted local lender for over 20 years, providing New Mexico borrowers with transparency and personalized service. We understand that no two borrowers are the same, which is why we take the time to review your financial situation and recommend loan options that suit your needs.

When you choose Indigo Mortgage, you’ll get:

• Direct Communication: A dedicated loan officer who’s available to answer your questions and guide you through the process.
• Tailored Solutions: We’ll help you find the best loan terms based on your income, credit, and homeownership goals.

Take the First Step Toward Homeownership

If you’re self-employed or have non-traditional income and need an alternative way to qualify for a mortgage, a Bank Statement Loan could be the right solution for you. Don’t let outdated qualification methods hold you back—call Indigo Mortgage today to see how we can help you secure the home you’ve been dreaming of.

For additional insights, check out Bankrate’s information on Bank Statement Loans.