Bank Statement Loans for Self-Employed Borrowers in South Carolina
Home Loans Inc. originates bank statement mortgage loans in South Carolina for self-employed borrowers whose tax returns significantly understate their actual income - allowing qualification using 12, 24, or even 3 months of personal or business bank deposits instead of traditional income documentation.
How Bank Statement Loans Work
A bank statement loan replaces W-2s, tax returns, and pay stubs with actual bank deposit history - averaging monthly deposits over a set period to calculate qualifying income.
Most investors allow 50% of average monthly deposits as the qualifying income figure. This is the standard expense factor applied to gross deposits. For borrowers in certain low-overhead industries - consulting, professional services, technology, and others - a higher percentage may be allowed with a letter from a licensed CPA or tax preparer confirming the actual expense ratio of the business. This can meaningfully increase your qualifying income and your purchase price.
Example: a North Charleston contractor who deposits $18,000 per month in business statements qualifies on $9,000 per month ($108,000 per year) using the 50% factor - even if their tax return shows $45,000 after write-offs. That is the real income they earn. The bank statement loan recognizes it.
Personal vs Business Bank Statements - and Program Terms
Bank statement loans come in several structures and understanding the differences helps you choose the right program for your specific situation.
Personal bank statements: deposits from your personal checking or savings account. Works well for sole proprietors and single-member LLCs who run income through personal accounts.
Business bank statements: deposits into your business operating account. Works well for S-corps, partnerships, and businesses with separate accounts.
Some investors allow a combination of both personal and business statements - giving you flexibility to use whichever accounts best represent your income.
Program terms available through Home Loans Inc: 3-month bank statement program for borrowers with very strong recent deposit history.
12-month bank statement program - the most common option, balancing recency with consistency.
24-month bank statement program - best for borrowers with steadier long-term deposit patterns who want to show income stability over a longer period.
We compare all available programs for your specific deposit history and recommend the one that produces the highest qualifying income.
Down Payment and Rate Expectations
Bank statement loans are available with as little as 10% down through our wholesale lender network - making them accessible even for borrowers who have not accumulated a large cash reserve.
Rates on bank statement loans are generally approximately 1% higher than a comparable conventional conforming loan with similar credit and down payment parameters. This premium reflects the additional risk the lender takes by using deposit-based income rather than tax-verified income. The trade-off is straightforward: a slightly higher rate in exchange for qualifying on your actual cash flow rather than your tax-return income.
Rate and down payment options: 10% down is available for qualifying borrowers. Larger down payments reduce the rate. Higher FICO scores reduce the rate. The combination of strong credit and a larger down payment can bring bank statement loan rates very close to conventional pricing.
We model your exact rate at multiple down payment and credit scenarios so you can make an informed decision.
Who Uses Bank Statement Loans in the Lowcountry
Self-employed borrowers across every industry in the Charleston area use bank statement loans - particularly those who maximize legitimate business write-offs that reduce taxable income far below actual cash flow.
Construction subcontractors serving the Summerville, Cane Bay, and North Charleston building boom are frequently 1099 or Schedule C earners whose tax returns show losses while their bank accounts show strong consistent deposits. Restaurant and hospitality operators in the growing Park Circle and downtown Charleston scene. Independent Realtors and mortgage professionals.
Transportation and logistics owner-operators serving the Port of Charleston. Boeing and Volvo supply chain vendors with complex income structures. Technology consultants and remote workers with multiple income streams.
If you have been told you cannot qualify for a mortgage because your tax returns do not show enough income - call us before assuming that is the final answer.
Use Fannie Mae's Free Income Calculator First
Before you call us, you can get a sense of what your qualifying income might look like on a conventional loan using Fannie Mae's free Income Calculator at incomecalculator.fanniemae.com. This tool uses your actual tax return data to calculate qualifying income with all allowable add-backs - and sometimes conventional qualification is closer than you think.
If the Fannie Mae calculator shows your conventional qualifying income is too low for your purchase target, that is when bank statement programs become the solution.
Call us with that number and we will run both options side by side - conventional vs bank statement - so you can see exactly where you stand on each program and choose the path that works best for your situation.
Q: Can I use both personal and business bank statements?
A: Yes - some of our investors allow a combination of personal and business statements. This gives you flexibility to use whichever accounts best represent your true income picture. We review your specific account structure and recommend the best approach.
Q: What is the minimum down payment for a bank statement loan?
A: As low as 10% down through our wholesale lender network. Larger down payments are available and will reduce your rate. We model multiple down payment scenarios so you can see the rate and payment impact of each option.
Q: How much higher are bank statement loan rates compared to conventional?
A: Generally approximately 1% higher than a comparable conventional conforming loan with similar credit score and down payment. Strong credit and a larger down payment can narrow that gap significantly. We quote your exact rate before you commit to anything.
Q: What is the 3-month bank statement program?
A: A shorter-term program for borrowers with strong recent deposit history who may not have 12 or 24 months of consistent deposits. It works well for borrowers whose business income has grown significantly in recent months. Not all investors offer this - we confirm availability for your specific situation.
Title or Q: My industry has very low overhead. Can I use more than 50% of deposits as income?
A: Yes - with a letter from a licensed CPA or tax preparer confirming your actual business expense ratio, some investors will allow a higher income percentage than the standard 50%. This can meaningfully increase your qualifying income. Call us to discuss whether your industry qualifies.
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COMPANY
NMLS: 1281448 | COMPANY NMLS: 1728740
Home Loans Inc: Jason Sharon, Mortgage Broker |
2557 Ashley Phosphate Rd,
North Charleston, SC 29418 |
(843) 569-7283 | www.homeloansinc.com
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