620 Treeline RD., Kalispell, MT 59901
620 Treeline RD., Kalispell, MT 59901
If you’re self-employed, own a business, or have income that doesn’t show up neatly on a W-2, qualifying for a traditional mortgage can feel frustrating. Tax deductions that reduce your taxable income — a smart move for your business — can make it look like you earn less than you actually do. Bank statement loans solve this problem by qualifying you based on your actual cash flow rather than your tax returns.
At Grizzly Mortgage, we work with lenders who specialize in bank statement financing for self-employed Montana buyers. Whether you own a business in Kalispell, work as an independent contractor, or have multiple income sources, we’ll help you find a path to homeownership that reflects your real financial picture.
Give us a call at 406-890-8464 to find out if a bank statement loan is right for you.
Use 12–24 months of bank statements to demonstrate income — not tax returns that may understate your earnings.
Bank statement loans are specifically designed for self-employed buyers and business owners who don’t fit the traditional qualification mold.
More flexible qualification standards make homeownership possible for buyers with complex income situations.
Don’t let your business structure prevent you from buying the home you want. Bank statement loans make it possible.
A fixed-rate bank statement loan gives you a stable, predictable monthly payment for the life of the loan. This is the most popular option for self-employed Montana buyers who want long-term payment stability and plan to stay in their home for many years.
An adjustable-rate bank statement loan starts with a lower initial rate before adjusting after a fixed period. This can result in lower initial payments and may make sense for buyers who anticipate significant income growth or plan to sell or refinance within the initial fixed period.
A bank statement loan is a type of non-QM (non-qualified mortgage) that allows self-employed borrowers to qualify for a home loan using bank statements as proof of income rather than traditional tax returns. Lenders typically review 12–24 months of personal or business bank statements and calculate an average monthly income based on deposits. This approach better reflects the true earning power of self-employed buyers whose tax returns may understate their actual income due to business deductions.
Bank statement loans are designed for self-employed individuals, business owners, freelancers, independent contractors, and anyone who has strong cash flow but reports lower income on their tax returns due to business deductions. You typically need to have been self-employed for at least two years and own at least 25% of your business. Credit score requirements are generally 620 or higher, though they vary by lender.
Most bank statement loan programs require 12–24 months of statements. Twelve-month programs are common and sufficient for most borrowers, while 24-month programs may offer better terms or accommodate more variable income patterns. Lenders will review your deposit history and calculate your average monthly income based on consistent cash flow — large, irregular deposits may be scrutinized more closely.
Bank statement loans are considered non-QM (non-qualified mortgage) products and typically carry slightly higher interest rates than conventional loans due to the increased documentation flexibility and perceived risk. However, the rate difference has narrowed in recent years, and for self-employed buyers who can’t qualify conventionally, a bank statement loan at a slightly higher rate is often far better than no loan at all. We’ll compare your options across multiple lenders to find the best rate available.
Yes — bank statement loans are available for primary residences, second homes, and investment properties, making them more flexible than government-backed options like FHA or VA loans which are limited to primary residences. This is a significant advantage for self-employed buyers who want to invest in Montana real estate beyond their primary home.
Down payment requirements for bank statement loans are typically higher than for conventional loans — usually 10–20% depending on the lender, loan amount, and your overall financial profile. A larger down payment can help offset the non-QM nature of the loan and may result in a better interest rate. We’ll walk you through the options specific to your situation.
It depends on whether you’re using personal or business bank statements. With personal bank statements, lenders typically use 100% of deposits as income. With business bank statements, lenders apply an expense factor — typically 50% — to account for the fact that not all business deposits represent take-home income. The specific methodology varies by lender, which is one reason working with a broker who has access to multiple lenders matters.
Bank statement loans can take slightly longer to close than conventional loans because the income documentation review is more involved. Budget for 30–45 days from complete application to closing. Having your bank statements, business documentation, and other required items ready before you apply can significantly speed up the process. We’ll give you a complete checklist at the start so you know exactly what to gather.