Bank Statement Loan Rates
How bank statement mortgages qualify self-employed borrowers on deposits instead of tax returns, and what drives their rates compared with conventional loans.
Conventional benchmark: Freddie Mac weekly survey
Week of August 20, 2026Source: Freddie Mac Primary Mortgage Market Survey via FRED, updated August 20, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing. This product uses the FRED® API but is not endorsed or certified by the Federal Reserve Bank of St. Louis.
How Bank Statement Loan pricing relates to this benchmark. Bank statement loans are non-QM products priced by individual lenders, so there is no national survey. They are typically quoted above the conventional benchmark above, with the spread depending on down payment, credit score and how many months of deposits are documented.
How Bank Statement Loan rates are set
A bank statement loan is a non-QM mortgage for self-employed borrowers whose tax returns, after legitimate business deductions, do not reflect the income they actually earn. Instead of tax returns and W-2s, the lender reviews 12 or 24 months of personal or business bank statements and calculates qualifying income from the deposits, usually applying an expense ratio to business accounts.
Rates on bank statement loans run above conventional rates because the loans do not meet the agencies' documentation standards and are funded by private capital. The premium narrows as credit score rises, loan-to-value ratio falls and the borrower shows longer self-employment history. Two years of statements, a larger down payment and a credit score in the 700s produce the most favorable pricing.
Programs commonly require at least two years of self-employment (some allow one year with a prior history in the same field), a credit score of roughly 660 or higher, a down payment of 10 to 20 percent and reserves. Business bank statements typically get an expense factor of 20 to 50 percent depending on the industry, or a CPA letter can establish the actual expense ratio.
Bank statement loans are available for primary residences, second homes and investment properties, and in fixed-rate, ARM and sometimes interest-only structures. Loan amounts often extend well into jumbo territory, which makes the program popular in higher-priced Florida markets among business owners, contractors, physicians in private practice and real estate professionals.
These loans can be a stepping stone. Once a borrower has two years of tax returns that support the payment, or once market conditions change, refinancing into a conventional loan may lower the rate. A licensed originator can compare the bank statement quote against any conventional option the borrower might qualify for with a co-borrower or a different income calculation.
Rates shown could change or may not be available at commitment or closing.
Daily rate-lock index (OBMMI)
Updated daily by providerIndex data © Optimal Blue, LLC. Optimal Blue Mortgage Market Indices.
Source: Optimal Blue Mortgage Market Indices (OBMMI), updated August 26, 2026. National average survey rates, not an offer. Your rate will depend on credit score, loan-to-value, loan type, property and occupancy. Rates could change or not be available at commitment or closing.
Bank Statement Loan Rates: common questions
How is income calculated on a bank statement loan?
Lenders total eligible deposits over 12 or 24 months, subtract an expense factor on business accounts (or use a CPA-verified ratio), and divide by the number of months to get monthly qualifying income.
Are bank statement loan rates much higher than conventional?
They are higher, with the gap depending on credit, down payment and the market. Strong credit and 20 percent or more down narrow it considerably.
Can I use personal bank statements?
Yes. Personal statements generally count 100 percent of eligible deposits, while business statements have an expense factor applied.
Is there mortgage insurance on a bank statement loan?
Usually not. The lender prices the risk into the rate instead. Some programs require a larger down payment in place of insurance.