If you are self-employed and your tax returns do not show the income you actually earn, a bank statement loan may let you qualify on your deposits instead. 719 Lending helps Colorado Springs business owners, 1099 contractors, and gig earners buy and refinance using 12–24 months of bank statements — no tax returns required. Rated 4.9★ on Google. (NMLS #1601989, Equal Housing Lender.)
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What is a bank statement loan?
A bank statement loan is a Non-QM (non-qualified mortgage) home loan that qualifies you using the deposits in your bank account rather than your tax returns, W-2s, or pay stubs. It is built for self-employed borrowers whose write-offs and business deductions lower their taxable income on paper — which can make a conventional loan harder to get even when cash flow is strong.
Instead of adjusted gross income from a 1040, the lender reviews 12 or 24 consecutive months of personal or business bank statements and calculates a monthly average of your qualifying deposits. Because the program uses alternative documentation, it still meets the federal Ability-to-Repay rule — Non-QM loans are not exempt from it. Bank statement loans are not government programs; they are private investor products, so terms, rates, and reserve requirements typically run higher than agency loans.
Bank statement loans in Colorado Springs & El Paso County
Colorado Springs has a deep base of self-employed earners: real estate and insurance agents, construction and trades contractors, restaurant and retail owners along Tejon and Academy, defense and aerospace consultants supporting the local installations, healthcare practice owners, and a growing pool of remote 1099 professionals. Many of these borrowers run profitable businesses but show modest taxable income after deductions. A bank statement loan is often the cleanest path for them to buy in neighborhoods like Briargate, the Powers corridor, Old Colorado City, Monument, and Falcon — or to refinance a home they already own here. As a local broker, 719 Lending shops multiple Non-QM investors to find the deposit-averaging method and pricing that fits how your business actually runs.
Benefits
- Qualify on bank deposits instead of tax returns, W-2s, or 4506-C transcripts.
- Designed for self-employed, 1099, and business-owner borrowers with heavy write-offs.
- Choose 12-month or 24-month statement options depending on your situation.
- Personal-account and business-account programs available.
- Works for primary homes, second homes, and investment properties.
- May work when a conventional loan cannot, because cash flow — not taxable income — drives approval.
Requirements & eligibility
- Self-employment history: typically two years in the same business, documented with a business license, CPA letter, or similar proof.
- Bank statements: 12 or 24 consecutive months from the same account, with consistent deposits.
- Credit: most programs look for a mid-600s score or higher; stronger credit generally means better terms and a lower down payment.
- Down payment: commonly in the 10%–20% range, with more required at lower credit scores or higher loan amounts.
- Reserves: several months of mortgage payments in reserve are often expected.
- Deposit averaging: personal accounts may count up to 100% of average monthly deposits; business accounts apply an expense factor (often around 50%) to reflect business costs.
These are general guardrails, not a promise of approval. The best way to see if you may qualify is to let us review your statements.
The process in Colorado Springs
- Talk to a local loan officer. We confirm a bank statement loan is the right tool — or point you to a better fit.
- Send your statements. Provide 12 or 24 months of bank statements plus proof of self-employment.
- We average your deposits. We calculate qualifying income and shop multiple Non-QM investors for terms.
- Get pre-approved & make offers. Shop Colorado Springs homes with a pre-approval in hand.
- Underwrite & close. We manage the file to closing and keep you updated at every step.
Bank statement vs. other loan options
A bank statement loan is one of several paths for self-employed borrowers. Compare it with related programs:
- Asset depletion (a related Non-QM option): if you are asset-rich but show little income, lenders can convert eligible liquid assets into qualifying income by dividing them over a set number of months — useful for retirees or investors with large portfolios.
- Investment property & DSCR loans — qualify a rental on its own cash flow instead of personal income.
- Jumbo loans — for higher loan amounts above conforming limits.
- Conventional fixed-rate — if your tax returns do support your income, this is usually cheaper.
- See all loan options »
Why Colorado Springs chooses 719 Lending
We are a local, independent Colorado Springs broker — not a call center. Because we shop many Non-QM investors, we can match self-employed borrowers to the right deposit-averaging method and pricing instead of forcing one lender’s box. Our clients consistently mention clear communication and an on-time close. See what they say on our reviews page.
Bank statement loan FAQ
Can I get a mortgage without tax returns if I am self-employed?
Yes. A bank statement loan lets self-employed borrowers qualify using 12–24 months of bank deposits instead of tax returns or W-2s. It is designed for owners whose write-offs reduce the income shown on their 1040. Send us your statements and we can check whether you may qualify.
How do lenders calculate income on a bank statement loan?
The lender averages your qualifying deposits over the statement period. Personal accounts can count up to roughly 100% of average monthly deposits, while business accounts apply an expense factor (often around 50%) to account for business costs. That average becomes your qualifying monthly income.
How much down payment do I need for a bank statement loan?
Down payments commonly fall in the 10%–20% range, with more typically required at lower credit scores or higher loan amounts. Because these are Non-QM investor products, down payment and reserve expectations generally run higher than agency loans. Your exact figure depends on credit, loan size, and the property.
What credit score do I need for a bank statement loan?
Most programs look for a mid-600s credit score or higher, and stronger credit generally earns better rates and lower down payment requirements. Some investors go lower with a larger down payment. We can review your credit and statements to see what you may qualify for.
719 Lending, NMLS #1601989. Equal Housing Lender. Bank statement and asset-depletion loans are Non-QM (non-qualified mortgage) products offered through third-party investors; rates, terms, down payment, reserve, and credit requirements vary by investor and borrower profile and generally exceed those of agency loans. This is not a commitment to lend; all loans are subject to credit approval, income/asset documentation review, and property appraisal. Program figures and guidelines are current as of 2026 and are subject to change without notice. Not all applicants will qualify. Contact us at (719) 888-5253 or info@719Lending.com for details specific to your situation.