What “bank statement loan” actually means
A bank statement loan is a non-QM mortgage. Non-QM means the loan does not have to follow the standard Qualified Mortgage income tests that look mainly at W-2s and tax returns. The lender still has to decide you can repay the loan. They just use a different file.
You send 12 or 24 months of personal or business statements (all pages). The underwriter reviews deposits, removes transfers between your own accounts, and averages what is left. That average is the starting income figure.
Who this path is for
It is a fit when the business is real and the deposits are real, but the 1040 is not the whole story. Rideshare and delivery 1099 work, trades, medical practices, agencies, and cash-heavy service businesses often land here.
It is not a way to hide income problems. Large unexplained deposits, bouncing accounts, or statements that do not match the work you describe will slow the file down or stop it.
Expense factor and CPA letters
If you qualify off a business account, some lenders apply an expense factor. They assume part of each deposit went to run the company, so they do not count 100% of the money as income.
Other lenders let a CPA letter explain true expenses. Neither path is a loophole. It is just a different worksheet. We will tell you which version a given lender wants after we see the statements.
What we will not put on this page
We will not publish a rate, APR, payment, or down-payment percent. Those numbers depend on the full file and the investor. Anyone quoting them from a blog post is guessing.
We also will not say you are guaranteed to qualify. The Mortgage King is a broker. A lender has to approve the loan.
How to start
Gather 12 months of statements if you have them (24 is even better), a photo ID, and a short description of the business. Use the pre-qualification form or call. Do not send Social Security numbers or bank logins through the website.
This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines and property eligibility. Programs and guidelines are subject to change without notice. Liberty Group Funding, Inc. is a mortgage broker and does not make loans directly.