Colorado Bank Statement Loan

Review me on GoogleLeave a 5-star Review!

A bank statement loan is a non-QM mortgage that uses 12 to 24 months of deposits to verify income for self-employed borrowers

Peak Seven Mortgage provides bank statement loans in Colorado for self-employed borrowers, allowing qualification using 12 to 24 months of bank deposits instead of tax returns. These Non-QM programs support credit scores as low as 620, offer down payments from 10%, and accommodate both personal and business accounts with flexible expense factor calculations.

ARE YOU SET TO BUY A HOME?

If you're self-employed or a business owner in Colorado, a bank statement loan can help you qualify for a mortgage using your real income—not just what shows up on your tax return.

BANK STATEMENT LOAN

Bank statement loans are designed for self-employed individuals, freelancers, contractors, and business owners who may not have traditional W-2 income but still earn enough to afford a home.

Instead of relying on tax returns, pay stubs, or W-2s, lenders use 12 to 24 months of personal or business bank statements to verify your income. This alternative documentation makes the loan process far more flexible for entrepreneurs and those with variable or seasonal income.

These loans are particularly popular among real estate investors, consultants, medical professionals, and others whose tax filings may not fully reflect their true earnings due to deductions or write-offs.

Bank statement loans can be used to purchase a primary home, second home, or even an investment property. They’re also available for refinancing.

In Colorado, where self-employed professionals and small business owners make up a growing segment of the housing market, bank statement loans provide a way to secure financing without having to restructure how you run your business.

Our Relentless Commitment Is To Provide You With
The Best Possible Services

Bank Statement Loans

and How They Work

Bank statement loans break away from the traditional loan model. Rather than requiring tax returns, these loans use deposits listed on your bank statements to determine qualifying income.
You may use either personal or business bank statements, depending on how your income is structured. Lenders typically average your monthly deposits over a 12- or 24-month period and apply an expense ratio to calculate your qualifying income.
This approach is ideal for self-employed borrowers who take legal deductions or write-offs that lower their taxable income but still maintain strong cash flow.
These loans often come with competitive interest rates and flexible term options, though they may carry slightly higher rates than conventional loans due to the non-traditional verification process.

How to Qualify for a

Bank Statement Loan

To qualify for a bank statement loan, you'll need to provide 12 to 24 months of consistent bank statements—either personal or business—to show steady income.
Most lenders require a credit score of at least 620 to 660, though higher scores may unlock better rates and lower down payment options.
A down payment of 10% to 20% is common, depending on your credit, loan amount, and property type. These loans typically do not require private mortgage insurance (PMI), even with less than 20% down.
You’ll also need to show that you’ve been self-employed for at least two years, and provide supporting documents such as a business license or a CPA letter verifying your self-employment status.
Strong bank balances, responsible credit use, and low debt-to-income ratios will all help you qualify for better terms and faster approval.

Bank Statement Loan Compared to Other Mortgages

Bank statement loans are ideal for self-employed individuals who don’t fit into the rigid guidelines of traditional lending.

These loans offer flexibility in income verification, allowing you to use real cash flow instead of navigating the limitations of tax filings and W-2s.

With fewer documentation requirements and a streamlined approval process, bank statement loans often close faster than conventional loans, helping you act quickly in competitive markets.

They’re available for a wide range of property types, including single-family homes, condos, second homes, and investment properties.

You’ll also have access to flexible loan structures, including fixed-rate and interest-only options, giving you control over your monthly payments and long-term financial strategy.

If your business is thriving but your tax returns don’t tell the full story, a bank statement loan could be the financing solution that helps you step into homeownership—or grow your real estate portfolio—on your terms.

APPLY NOW and GET PRE-APPROVED

What is a Bank Statement Loan and how does it differ from a traditional mortgage?

Standard loans use tax returns; we use your actual cash flow. A bank statement loan is a "Non-QM" mortgage designed for self-employed individuals. Instead of using W-2s or tax returns (where deductions might lower your "on-paper" income), we look at 12–24 months of deposits to calculate your true purchasing power.

Do I need to use personal or event business statements?

You can use either. If you use personal statements, we typically count 100% of eligible deposits. If you use business statements, we apply an "expense factor" (usually 50%, but it can be lower with a CPA letter) to determine your qualifying income.

What is an "Expense Factor" and how does it affect my loan?

Lenders understand that running a business has costs. An expense factor is a percentage deducted from your total deposits to account for overhead.

Pro Tip: If your actual expenses are low (like a consultant vs. a restaurant owner), a CPA Letter can often lower this factor, helping you qualify for a much higher loan amount.

What is the minimum credit score required in Colorado for a bank statement loan?

While requirements vary, you can typically qualify with a credit score as low as 620. However, scores above 700-720 unlock significantly better interest rates and lower down payment options.

How much down payment do I really need?

Describe the item or answer the question so that site visitors who are interested get more information. You can emphasize this text with bullets, italics or bold, and add links.

Will my interest rate be higher than a "regular" loan?

Generally, yes. Because these loans are held by private investors rather than backed by the government (Fannie Mae/Freddie Mac), the rates are typically 1% to 2% higher than conventional rates to account for the manual underwriting process.

Can I get a bank statement loan if I’ve only been self-employed for one year?

Most programs require 2 years of self-employment. However, if you were in the same industry as a W-2 employee prior to going independent, we can often qualify you with only 12 months of business history.

Do you look at my withdrawals and spending habits?

Underwriters primarily focus on deposits to verify income and ending balances to verify reserves. They do, however, look for "red flags" like frequent overdrafts (NSF fees) or large, undocumented transfers which can impact approval.

Can I use these loans for investment properties?

Absolutely. Bank statement loans are a favorite for real estate investors and can be used for primary residences, second homes, and 1-4 unit investment properties. Look at the DSCR loans too, for investment property.

Are online-only banks (like Monzo, Chime, or Novo) accepted?

es! As long as the bank can provide official PDF statements containing the account holder’s name, account number, and a full transaction history, online-only and "FinTech" banks are fully eligible.