Being self-employed can make mortgage qualification frustrating.

Your business may generate strong revenue, but your tax returns may show much lower taxable income because of legitimate business deductions.

A bank statement loan may offer another option.

Instead of using traditional tax-return income, the lender reviews deposits into personal or business bank accounts.

Depending on the program, the lender may review 12 or 24 months of statements.

These loans are commonly used by:

• Business owners
• Independent contractors
• Commission-based professionals
• Entrepreneurs

The tradeoff is that rates and down-payment requirements may be higher than traditional financing.

But for some self-employed buyers, it can turn a decline into an approval.

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