Self-employed mortgages
Bank statement loans in Connecticut
Qualify on what you deposit, not what you report. Your write-offs lower your taxes; with a bank statement loan they don't lower your approval.
For Connecticut business owners, 1099 contractors, freelancers and commission earners. We use 12 or 24 months of personal or business statements instead of tax returns.
Reviewed by Gaetano Ciambriello, NMLS #1783508 · 4.9 · 450+ Google Reviews · Family-Owned Since 1998
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Since 1998
Family-owned, Connecticut direct lender
NMLS #2801
Licensed in Connecticut
The short answer
What is a bank statement loan?
A bank statement loan is a mortgage for self-employed borrowers that uses 12 or 24 months of bank statements instead of tax returns to document income. We average your deposits, apply an expense factor if they're business statements, and build the loan on that number. AFC is a Connecticut direct lender, and our Approval Team reviews every file in-house.
At a glance
Bank statement loan terms
Qualify on deposits, not deductions. No W-2s or 1040s, and the write-offs that lower your taxes stay out of the income math.
Limits depend on credit score, loan size, occupancy and property type. Not a commitment to lend.
Program terms
Example: a $450,000 30-year fixed loan at 7.25% with 10% down has 360 monthly principal and interest payments of $3,069.79 and an APR of 7.524%. Rate as of 10/18/2026; full details at the bottom of this page.
The math
Same deposits, different answers
Add up your qualifying deposits, divide by the number of months, then apply an expense factor if you're using business statements. What's left is the monthly income your loan is built on.
A Fairfield County consultant who owns 100% of the business deposits $480,000 over 24 months, an average of $20,000 a month.
The 50% standard, and how to beat it
On business statements we start from a 50% expense factor. If your real overhead is lower, a signed letter from your CPA, enrolled agent, tax attorney or paid tax preparer stating your expense ratio replaces the 50%. Ask about it at the start, not after the file is running.
Example
Illustrative only. Not a commitment to lend.
Personal or business statements?
Business statements
We count eligible business deposits, multiply by your ownership share (at least 25%) and apply the expense factor.
Personal statements
No expense factor. We average the deposits into your personal account, mostly the regular transfers you pay yourself, plus your 2 most recent months of business statements to show those transfers.
Pick one
Personal and business statements can't be combined on the same loan. We'll run both with you and use the one that tells your story better.
What counts
Customer payments, regular business revenue, and transfers from your business to your personal account.
What doesn't
Transfers between your own personal accounts, loan proceeds, tax refunds, one-time asset sales, and income from another job. Large or unusual deposits need a short explanation, and a pattern of overdrafts can hold a file up, so tell us about either early.
Write-offs
When your bank statements don't match your tax returns
It's the most common reason self-employed buyers get turned down. Your accountant did their job: depreciation, a home office, vehicle costs and equipment write-offs brought your taxable income down. A lender that only reads tax returns sees that lower number and stops there.
A bank statement loan starts from what actually lands in your account. If your business deposits $20,000 a month and your return shows $60,000 a year, we work from the deposits.
Check full documentation first. On a tax-return loan, depreciation and some other write-offs are added back to your income. Sometimes the return qualifies after all, and that's worth knowing before you choose a program.
Large deposits need a paper trail. If a big deposit isn't business revenue, we'll ask what it is. A one-line explanation up front saves a week later.
Who it's for
Built for how you get paid
Business owners
LLC, S-corp or sole proprietor, qualified on deposits.
1099 contractors
Steady deposits, no W-2 needed.
Freelancers
Variable income averaged over 12 or 24 months.
Commission earners
Heavy write-offs or uneven months won't sink you.
1099 income loans
Paid on 1099s? We can qualify you on 12 or 24 months of 1099s instead of tax returns. We confirm the 1099s with an IRS transcript and use your bank statements to show what you've earned so far this year. It's often the simplest route for contractors with one or two steady clients.
Profit and loss statement loans
If your CPA, enrolled agent or registered tax preparer prepares your taxes, a signed 12-month profit and loss statement from them can document your income. You need to own at least half the business, and self-prepared P&Ls don't qualify.
Asset-based loans
Thin deposits but significant savings or investments? We can turn qualified assets into monthly income for the loan instead. See non-QM loans for how asset-based qualifying works.
Own rentals too? Use a bank statement loan for your home and a DSCR loan for the rentals, which qualify on rent instead of your income.
Compare
Bank statement, 1099, P&L or full documentation?
All of the self-employed options need 2 years of self-employment.
What to have ready
Documents for a bank statement loan
- 12 or 24 months of complete bank statements, every page, from the same account(s)
- Proof you've been self-employed 2 years, such as a CPA letter, a business license or your Secretary of State listing
- Your ownership share in the business (CPA letter or operating agreement), if you're using business statements
- A tax professional's expense letter, if your expenses run under 50%
- Photo ID
- Statements for your down payment and reserves
- A short note on any large or unusual deposits
How it works
Four steps with AFC
- Tell us about your income. Two minutes, no hard credit pull to start.
- We read your statements with you. Our team picks 12 or 24 months and personal or business statements, whichever shows your income best.
- Our Approval Team underwrites in-house. You hear from the people deciding your file, not a call center.
- Green Light, then closing. We line up the closing with your attorney and agent.
Local
Bank statement loans across Connecticut
Fairfield County consultants, New Haven contractors, Hartford-area practice owners and shoreline business owners with seasonal income. We read self-employed income every day from our office in Monroe and present it the way our Approval Team needs to see it.
Fairfield County
Bridgeport, Stamford, Norwalk, Danbury, Greenwich, Westport, Fairfield, Trumbull, Shelton, Stratford, Monroe, Newtown, Ridgefield, Darien, New Canaan, Wilton, Weston, Easton, Redding, Bethel, Brookfield, New Fairfield
New Haven County
New Haven, Milford, West Haven, East Haven, Hamden, North Haven, Waterbury, Meriden, Wallingford, Cheshire, Branford, Guilford, Madison, Orange, Woodbridge, Naugatuck, Southbury, Oxford, Seymour, Ansonia, Derby
Hartford County
Hartford, West Hartford, East Hartford, New Britain, Bristol, Manchester, Glastonbury, Farmington, Avon, Simsbury, Southington, Enfield, Wethersfield, Newington, Rocky Hill, Windsor, South Windsor, Berlin
Litchfield County
Torrington, New Milford, Litchfield, Watertown, Woodbury, Thomaston, Washington, Kent, Salisbury, Sharon, Winchester
Middlesex County
Middletown, Cromwell, Portland, East Hampton, Durham, Haddam, Chester, Deep River, Essex, Old Saybrook, Westbrook, Clinton, Killingworth
New London County
New London, Norwich, Groton, Mystic, Stonington, Waterford, East Lyme, Old Lyme, Ledyard, Montville, Colchester
Tolland County
Vernon, Tolland, Mansfield, Coventry, Ellington, Somers, Stafford, Hebron, Bolton
Windham County
Windham, Putnam, Killingly, Plainfield, Thompson, Woodstock, Pomfret, Brooklyn
Examples
Three Connecticut examples
Stamford 1099 consultant
Two steady clients, paid on 1099s for three years. 24 months of 1099s plus this year's statements document the income; no tax returns.
New Haven general contractor
Materials eat a big share of revenue, so the 50% standard factor fits. Business statements, 24 months, to smooth out a slow winter.
Old Saybrook seasonal business owner
Summer-heavy deposits. 24 months of statements averages two full seasons, and a CPA letter documents 35% expenses instead of 50%.
Illustrative examples. Your program and qualifying income are set during review.
Already own your home? The same 12 months of bank statements can qualify you for a bank statement HELOC, so you can tap your equity and keep your first mortgage.
FAQ
Bank statement loan questions
How do bank statement loans work in Connecticut?
We qualify you on 12 or 24 months of personal or business bank statements instead of tax returns. We average your deposits, apply an expense factor to business statements, and build the loan on that income.
What credit score do I need for a bank statement loan?
Our bank statement program starts at a 660 credit score. Higher scores open up lower down payments and larger loan amounts. If your score is lower or you've had a recent credit event, ask us about our other self-employed options.
How much do I need for a down payment?
As little as 10% on a primary home with a 720 or higher score and a loan up to $1.5 million. Larger loans, lower scores, second homes and investment properties need more down. Gift funds can help. Example: a $450,000 30-year fixed loan at 7.25% with 10% down has 360 monthly principal and interest payments of $3,069.79 and an APR of 7.524%. Rate as of 10/18/2026; full details at the bottom of this page.
How large a loan can I get?
Bank statement loans go up to $3.5 million. The largest loans need a bigger down payment and more reserves.
Can I do a cash-out refinance with a bank statement loan?
Yes. You can take cash out up to 80% of your home's value, depending on your credit and loan size.
Should I use 12 or 24 months of statements?
Whichever represents your income better. Twelve months works when the last year was your best. Twenty-four smooths out a slow stretch or seasonal swings. We look at both with you.
Can I use personal and business statements together?
No. One loan uses one type. Business statements get an expense factor; personal statements don't, but we also need 2 months of business statements to show the transfers you pay yourself. We'll tell you which works better.
What expense factor will you use for my business?
The standard is 50% of deposits on business statements. If your real expenses are lower, a signed letter from your CPA, enrolled agent, tax attorney or paid tax preparer stating your expense ratio replaces it.
What deposits don't count?
Transfers between your own personal accounts, loan proceeds, tax refunds, one-time asset sales and income from another job generally don't. Customer payments and regular business revenue do.
How long do I need to be self-employed?
2 years, and the business needs to have been open at least 2 years. We confirm it with a CPA letter, business license, Secretary of State listing or similar.
Can I get a mortgage if my bank statements don't match my tax returns?
Yes, that's what bank statement loans are for. Write-offs lower your taxable income but not your deposits, and a bank statement loan qualifies you on the deposits.
Do lenders accept bank statements instead of pay stubs or W-2s?
For self-employed borrowers, yes. A bank statement loan replaces pay stubs, W-2s and tax returns with 12 or 24 months of statements.
I'm paid on 1099s. Do I need a bank statement loan?
Not necessarily. We can qualify you on 12 or 24 months of 1099s plus this year's bank statements, which is often simpler for contractors.
Are bank statement loan rates higher than conventional rates?
It depends on your credit score, down payment, loan size and how you document income. We quote your actual numbers rather than a rule of thumb.
Can I use a bank statement loan for a second home or investment property?
Yes. Bank statement loans work for primary homes, second homes and investment properties. Second homes and rentals need a larger down payment.
Can I refinance into a conventional loan later?
Yes. Once your tax returns show enough income, refinancing into a conventional loan is an option, and we'll plan for it from day one.
Is a bank statement loan a legitimate mortgage?
Yes. It's a non-QM loan built for how business owners really earn, not a workaround, and our Approval Team underwrites it like any other mortgage.
Related
Keep reading
Non-QM loans · Bank statement loan guide · DSCR loans · Investment property loans · Purchase budget calculator
Get the mortgage your cash flow says you can.
Bank statement loans are non-QM mortgages. Example: a $500,000 purchase with 10% down ($50,000), financed with a $450,000 30-year fixed-rate bank statement loan at 7.25% with 2 points ($9,000) and $2,990 in lender fees, has 360 monthly principal and interest payments of $3,069.79 and an APR of 7.524%. The payment does not include taxes, insurance or HOA dues, so the actual payment will be higher. Rate as of 10/18/2026 for a 720+ credit score on a primary residence; rates change daily and depend on your credit, down payment, loan size and property. Not a commitment to lend. Programs, terms and eligibility are subject to change and to credit, income and underwriting approval. AFC Mortgage Group, LLC | NMLS #2801 | Equal Housing Lender.