Bank Statement Loans in New York, NY

Your tax return tells the IRS what you kept after deductions. Your bank statements tell a lender what actually came in. Bank statement mortgages are built on that second record, reviewing a run of monthly statements to estimate qualifying income for New York buyers and owners who are paid through their own business. Here is how lenders read those statements and how to get yours ready in New York.

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Self-employment in New York by the numbers

10.0%Workers who are self-employed

403,189Self-employed workers

3.8%Run an incorporated business

$80,500Median household income

Census estimates show 10.0% of New York's working residents are self-employed, roughly 403,189 people, below the 11.4% share for New York County as a whole. That share is higher than in 64% of the New York cities and towns we cover. Owners of incorporated businesses make up 3.8% of the local workforce; their pay often flows from a business account to a personal account. When write-offs shrink the income on a tax return, a review of actual deposits can tell a fuller story, which is why bank statement programs exist.

How lenders turn statements into qualifying income

Think of the review as two steps. First, the underwriter decides which deposits count. Pay from your own company, client payments and card processor settlements usually do. Transfers between your own accounts, loan proceeds and refunds usually do not, because they are not earnings.

Second, the underwriter converts the eligible deposits into a monthly number. Business account deposits are reduced by an expense factor the program sets, or by the expense ratio shown in a letter from your CPA, EA or tax preparer. Personal account deposits generally are not reduced that way. The monthly average that comes out of this process is what the lender weighs against your housing payment and your other debts.

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Prefer to talk first? Call (888) 508-8976. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Personal accounts, business accounts or both

Before you call anyone, look at how money really flows in your household. If clients pay your business and the business pays you, the business account carries the full picture and the personal account shows the draws. If clients pay you directly, your personal account may be the only record.

A loan officer can review both sets and point out which one tends to produce a cleaner qualifying figure under the programs available to you. Joint personal accounts, accounts shared with a business partner and accounts that collect money for more than one company each raise their own questions. Partners, for example, usually need to document their ownership share, because the lender counts only the portion of the income that belongs to you.

Who this tends to fit

You own a business and pay yourself through irregular owner draws
You are self-employed and write-offs make your tax returns show less income than your deposits
You want to buy or refinance using the cash flow your own accounts can document
You keep business and personal money in separate accounts with clean records
A bank turned you down because of the income shown on your returns

Local offices and New York rules to know

Deed and mortgage recording: NYC Department of Finance - Office of the City Register (ACRIS). Your mortgage is recorded here after closing.
Property assessment: NYC Department of Finance (property assessment and exemptions). DOF administers homeowner exemptions (for seniors, veterans, clergy, people with disabilities and others) that lower a home's assessed value, with a separate application page for each; STAR credits are requested through the New York State tax department.

Lenders often confirm that your business is active. In New York, business entity records are searchable through the New York Department of State, Division of Corporations. If a CPA prepares your expense letter or P&L, the lender may check the license with the New York State Education Department, Office of the Professions.

What underwriters flag on New York bank statement files

A lender reading your statements is looking for consistency and for anything that may not repeat. A one-time contract payment, the sale of equipment or an insurance check may be left out of the average because it will not recur.

Account health matters as well. Frequent overdraft or nonsufficient funds charges suggest the business runs close to empty, which affects how comfortable the lender feels adding a mortgage payment. Missing pages, statements that do not show your name or account number, and screenshots in place of full statements can slow the review. Download complete monthly statements directly from your bank, include every page, and be ready to explain any deposit that stands out from the rest.

Before you call

A list of transfers between your own accounts so they are not counted as income
A list of which accounts are business, which are personal and who else is on each one
Proof that you own the business, such as a license, formation documents or a CPA letter
Complete monthly statements for the review window, every page, downloaded from your bank
Contact details for a CPA, EA or tax preparer who can write an expense letter if needed

Questions New York borrowers ask about bank statement loans

Why do my tax write-offs matter for a mortgage?

Deductions lower your taxable income, which helps at tax time but can leave the net income on your returns too low to qualify under standard guidelines. A bank statement loan looks at deposits instead, so it may better reflect your real cash flow. Whether to change how you deduct expenses is a separate decision with tax consequences of its own, so talk to a tax professional.

Can I use bank statements if I also have a W-2 job?

Some programs allow it, combining W-2 wages documented the usual way with self-employment income documented through bank statements. Others want the bank statement method to cover all of the income used to qualify. How a lender treats a mixed file depends on the investor's guidelines, so mention every income source at the start instead of letting one surface partway through underwriting.

What is a bank statement loan?

It is a mortgage that uses bank statements instead of tax returns to document income. A lender reviews a set number of months of personal or business statements, totals the eligible deposits, adjusts business deposits for expenses and arrives at a monthly income figure. It is a non-QM loan, so it falls outside the Qualified Mortgage rules, but the lender must still make a good-faith determination that you can repay.

Do bank statement mortgages cost more?

They often price higher than agency loans such as conventional or FHA, because the investor takes on more risk when income is documented outside standard guidelines. Lenders may also expect a larger down payment and more cash in reserve. Pricing depends on your credit, the property, the review window and the program, so compare complete Loan Estimates instead of a single quoted figure.

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Get answers about bank statement loans for a home in or around New York. Subject to credit approval; programs vary.