10/07/2026
True or false: "I need my tax returns to get a mortgage."
Comment your answer before you read on.
For a lot of self-employed buyers, the answer is false.
If you own a business, your tax returns are designed to show as little income as possible. That's smart at tax time, but it's often the reason business owners who earn well still get told they don't qualify.
A bank statement loan works differently. Instead of your tax returns, the lender looks at 12 or 24 months of your bank deposits to figure out your income.
Here's a simple example: if your business account averages $40,000 a month in deposits, a lender using a 50% expense factor would count about $20,000 a month as income. If your CPA can show your real expenses are lower, that number can go up.
This matters in Santa Barbara. There are over 35,000 one-person businesses in the county, and most home purchases here need a loan above the $941,850 conforming limit. Some bank statement programs go up to $4 million.
It isn't the right fit for everyone. Pricing usually runs higher than a conventional loan, and not every lender offers it. But if you've been told no, it's worth a second look.
I break down how it works, what lenders look for, and how to prepare in my new guide:
https://jllendingteam.com/bank-statement-loan-santa-barbara/
Self-employed and been declined? Call or text 805-456-2256 for a second opinion.
Justin Leach | JL Lending Team | NMLS 685345
Loan programs, requirements, and terms vary by lender and are subject to change. Not all borrowers will qualify. Equal Housing Opportunity.
