Loan Comparison
Self-employed borrowers often earn strong income that their tax returns understate after business write-offs. Conventional loans qualify you on those tax returns; bank statement loans qualify you on actual deposits. The right choice depends on what your documents show.
| Bank Statement Loan | Conventional Loan | |
|---|---|---|
| Income documentation | 12–24 months of bank statements | 2 years of tax returns + W-2s/1099s |
| Who it fits | Business owners, freelancers, 1099 contractors | W-2 employees and self-employed with strong tax returns |
| Down payment | Typically 10–20% | As low as 3% |
| Rates | Modestly higher (Non-QM pricing) | Benchmark conforming pricing |
| Loan amounts | Can exceed conforming limits | Up to conforming limit |
| Best when | Tax returns understate your real cash flow | Tax returns fully support your income |
Run the conventional numbers first — if your tax returns qualify you for what you need, conventional wins on rate and down payment. If write-offs shrink your paper income, a bank statement loan can qualify you on what you actually earn, often the difference between buying now and waiting two tax years. We analyze both on every self-employed file.
Still Deciding?
We'll price both programs with your actual numbers and show you the payment, cash to close, and long-term cost side by side — no credit pull required.
Questions
Rates run modestly above conventional, reflecting the flexible documentation. Many borrowers use a bank statement loan to buy now, then refinance into conventional once their tax returns support it.
For business accounts, lenders total deposits and apply an expense factor (often 50%, lower with a CPA letter). For personal accounts, 100% of qualifying deposits typically count. We run both and use whichever qualifies you for more.
Most bank statement programs want two years of self-employment; some accept one year with prior experience in the same field. We’ll match your history to the right investor.
About Us
CDL Mortgage Services Inc. is an independent, full-service mortgage company. Instead of pushing one bank’s products, we shop multiple wholesale lenders to secure the best loan at the best rate for every borrower.
Purchase, refinance, and home equity — all under one roof, focused on the best loans at the best rates.
Based at 6524 Lonetree Blvd, Rocklin, CA 95765 and licensed in California, Texas, Georgia, Tennessee, Oklahoma & Idaho.
Every file is handled start-to-finish by a licensed loan officer who knows your name and your goals.
Fully licensed and regulated, with award-winning lender partnerships and 35+ years serving borrowers.
Ready When You Are
One application, multiple wholesale lenders, and a licensed loan officer who explains the tradeoffs before you commit.