Illinois Bank Statement Mortgage Broker
Bank Statement Loans in Illinois
Self-employed and tired of hearing that your tax returns don’t show enough income? Qualify with 12 or 24 months of bank statements instead. Credit scores from 600, and we shop 120+ lenders for you.
- 12 or 24 months of statements
- Credit from 600
- Pre-approved in 24 hours
or call (847) 899-6882
30-second survey. No credit check. Your info is never sold. Refinancing? Start the cash-out survey.
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Key takeaways
Bank statement loans let self-employed Illinois borrowers qualify with 12 or 24 months of personal or business bank statements instead of tax returns. Alex MacLagan (NMLS #1912744) shops 120+ lenders for you. Programs start at a 600 credit score, allow as little as 10% down with strong credit, and require 2 years in business.
- Lenders count 100% of business deposits that land in your personal account. On business statements they apply a 50% expense factor, or count up to 90% of deposits with a CPA letter, depending on your industry.
- You need 2 years in business, 6 months of reserves, and 3 years since a foreclosure or a bankruptcy discharge.
- Bank statement loans go well past the 2026 Cook County conforming limit of $832,750, to about $3.5 million, so one program covers a Chicago condo or a North Shore home.
- Rates usually run higher than conventional rates. Shopping several non-QM lenders and comparing Loan Estimates is where you save.
- MacLagan Home Loans is an Illinois mortgage broker that also lends in Wisconsin, Minnesota, and Arizona, with pre-approvals within 24 hours of a complete file.
What is a bank statement loan?
A bank statement loan is a mortgage that uses your average monthly bank deposits, not your tax returns, to prove your income. It is a non-QM (non-qualified mortgage) loan, so lenders set their own rules instead of following Fannie Mae or Freddie Mac.
Why does that matter? Because the tax code rewards business owners for writing off expenses, and a conventional lender only sees what’s left on line 31 of your Schedule C or the K-1 from your S-corp. A contractor who deposits $240,000 a year can show $60,000 of taxable income and get turned down for a house his business easily supports.
That is a common story in the Chicago area. The Chicago-Naperville-Elgin metro has 1.1 million small businesses, 99.6% of all businesses in the region, and 11.9% of private-sector workers were self-employed in 2023, up from 10.7% in 2018. A bank statement mortgage is built for those people: contractors, realtors, salon and restaurant owners, truckers, consultants, and anyone else whose deposits tell a better story than their returns.
Source: U.S. SBA Office of Advocacy, 2025 Small Business Profiles (Midwest)
A bank statement loan is often the right fit if you
- Own at least 25% of a business that has been open 2 years or more
- Write off enough expenses that your tax returns understate what you earn
- Had a strong year that isn’t on a filed return yet, or a slow year you’ve recovered from
- Are a 1099 contractor, gig worker, or commission earner with steady deposits
- Were denied by a bank that only looked at your taxable income
- Want to buy, refinance, or take cash out of a primary home, second home, or rental
Bank statement loan requirements in Illinois for 2026
Every non-QM lender writes its own bank statement loan requirements, which is why one lender says no and another says yes. These are the guidelines we work with across our wholesale partners.
| Requirement | What you need | What it means for you |
|---|---|---|
| Bank statements | 12 or 24 months, personal or business | 12 months helps if your business is growing. 24 months smooths out a slow stretch. |
| Income calculation | Business: 50% expense factor, or up to 90% of deposits with a CPA letter. Personal: 100% of business deposits | See the worked example below. |
| Time in business | 2 years, no exceptions | Proved with a CPA letter, business license, or state registration. |
| Ownership | At least 25% of the business | Partners can qualify on their share of deposits. |
| Credit score | As low as 600 | Higher scores unlock lower down payments and better pricing. |
| Down payment | As little as 10% with strong credit | See the credit score table below. |
| Loan amount | About $125,000 to $3.5 million | Larger loans reviewed case by case. No separate jumbo program needed. |
| Debt-to-income | Up to 50% | Your Illinois property taxes count here, so we price them in from day one. |
| Reserves | 6 months of payments, minimum | Checking, savings, and retirement accounts can count. |
| Credit events | 3 years since foreclosure, 3 years since bankruptcy discharge | Bankruptcy is measured from the discharge date, not the filing date. |
| Property and occupancy | Primary, second home, or investment. Single-family, condos, townhomes, 2 to 4 units | Non-warrantable condos are allowed with more down. |
| Loan terms | 15, 30, or 40-year fixed, 5/6 and 7/6 ARMs, interest-only options | Interest-only can lower your payment while the business grows. |
| Down payment help | Gift funds allowed with some lenders. First-time buyers eligible | We match you to a lender that allows your situation. |
How your credit score sets your down payment
What credit score do you need for a bank statement loan? You can qualify with a 600, but your score decides how much you need to put down. Here is how one of our lenders tiers it on loans up to $1,000,000:
| Credit score | Purchase: minimum down | Rate and term refinance: max LTV | Cash-out refinance: max LTV |
|---|---|---|---|
| 700 and up | 10% down (90% LTV) | 85% | 80% |
| 680 to 699 | 15% down (85% LTV) | 85% | 80% |
| 600 to 679 | 20% down (80% LTV) | 80% | 75% |
Want to know which tier you land in?
See If I QualifyHow lenders calculate your income from bank statements
The lender adds up your eligible deposits for 12 or 24 months, divides by the number of months, and then adjusts for business expenses. Which statements you use changes that last step more than anything else.
Business bank statements: the expense factor
With a business bank statement loan, the lender assumes part of every deposit goes to running the business. The standard expense factor starts at 50%, so $20,000 a month in deposits counts as $10,000 a month in income. You don’t need to show your actual expenses to use it.
Using a CPA letter to count up to 90% of deposits
If your real expenses are lower than 50%, a CPA, enrolled agent, or licensed tax preparer can write a letter stating your actual expense ratio. Depending on your industry, lenders can then count up to 90% of your deposits. A consultant or a realtor with low overhead often gains the most here. A restaurant owner with high food and labor costs usually doesn’t.
Personal bank statements: 100% of business deposits
If you pay yourself from the business into a personal account, lenders count 100% of those business deposits as income, because the expenses were already paid on the business side. Transfers between your own accounts, loan proceeds, and other non-business deposits are left out.
Worked example: $20,000 a month in deposits
Here is the same Illinois business owner run three ways, with 12 months of statements averaging $20,000 a month ($240,000 for the year):
| Statement type | Deposits counted | Qualifying monthly income | Max total monthly debts at 50% DTI |
|---|---|---|---|
| Business, 50% expense factor | 50% | $10,000 | $5,000 |
| Business, CPA letter (20% expenses) | 80% | $16,000 | $8,000 |
| Personal, deposits from the business | 100% | $20,000 | $10,000 |
Same business, same deposits, and the room for a house payment doubles. That is why we look at both sets of statements before we pick a lender. Want to turn your income into a payment? Try our bank statement loan calculator with your qualifying income. For more worked examples by industry, read our guide to bank statement loan income calculation.
What are red flags on bank statements?
Underwriters read every page. These are the items that slow a file down or shrink your qualifying income:
- Large deposits with no paper trail. Anything out of pattern needs a short explanation and proof of where it came from.
- Overdrafts and NSF fees. A few are usually fine. A steady pattern raises questions about cash flow.
- Declining deposits. If the last few months are well below your average, lenders may use the lower number.
- Mixed personal and business spending. It makes the personal statement method harder to use.
- Transfers between your own accounts. They don’t count as income, and counting them twice is a common mistake.
Before you apply anywhere, send us your statements. We’ll run your income both ways and tell you which method gets you the most house, before a lender ever pulls your credit for an application.
Today’s bank statement loan rates in Illinois
Do bank statement loans have higher interest rates? Yes, usually. Bank statement loan rates today run higher than conventional rates because the loans can’t be sold to Fannie Mae or Freddie Mac, and the lender carries more of the risk.
How much higher depends on your file, and it changes daily. That is the reason we don’t post one number on this page. Two lenders can price the same borrower very differently, and a broker who shops 120+ lenders sees that spread on every quote.
What affects your bank statement loan rate
- Credit score. Pricing usually improves at 680, 700, 720, and 740.
- Down payment or equity. Every 5% you add can lower your rate.
- Loan amount. Very small and very large loans often price higher.
- Occupancy. Primary homes price better than second homes and rentals.
- Interest-only. A lower payment, but often a slightly higher rate.
- Prepayment penalty. On investment properties, accepting one can lower your rate. On a primary home, the programs we use don’t charge one.
- Points. You can pay points to buy the rate down, or take a higher rate with lower costs.
Rate vs. APR
The rate sets your monthly payment. The APR folds in points and lender fees, so it shows the true cost of the loan. When you compare bank statement offers, compare APR, the points in Section A of the Loan Estimate, and whether the rate is locked.
Get your rate priced against our wholesale lenders.
Get My Bank Statement RateAlready have a bank statement loan offer? Check it before you sign.
Non-QM pricing varies more from lender to lender than conventional pricing does, so two Loan Estimates for the same self-employed borrower can be thousands of dollars apart. Upload yours and get a free, private checkup in seconds.
- Separates what the lender charges from costs that are the same anywhere
- Flags points, unlocked rates, prepayment penalties, and interest-only terms
- Compares two Loan Estimates side by side, box by box
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- You’re paying 1.5 points. Ask for the price with zero points.
- Your rate is not locked. The price can still change before closing.
- No prepayment penalty and no balloon payment.
Bank statement loans for Illinois property types
Chicago’s housing mix is unusual: high-rise condos, vintage two-flats and three-flats, and North Shore homes that cost more than most loan programs allow. Bank statement loans handle all of them, with a few rules worth knowing.
Chicago condos: warrantable and non-warrantable
A warrantable condo meets Fannie Mae’s building rules. A non-warrantable one doesn’t, often because of a single owner holding too many units, high commercial space, pending litigation, or low reserves in the association budget. Conventional lenders walk away from non-warrantable buildings. Our bank statement lenders allow them with 20% to 25% down, compared with 10% to 15% on a warrantable condo.
Two-flats and 2 to 4 unit buildings
Buying a two-flat in Logan Square or a three-flat on the South Side with a bank statement loan? Plan on 15% to 20% down for 2 to 4 units. You can live in one unit or buy the whole building as an investment.
Second homes and investment properties
Plenty of Chicago business owners buy a second home in Wisconsin, around Lake Geneva or Door County. A bank statement loan works for second homes and for rentals, usually with 15% to 20% down on investment properties. If the rental will pay for itself, a DSCR loan for rental properties may be a better fit, because it qualifies you on the rent instead of your income.
Why Illinois property taxes matter for your approval
Illinois has the second-highest effective property tax rate in the country, at 2.05% of home value. On a $500,000 home that is about $10,250 a year, or $854 a month, and every dollar of it counts against your 50% debt-to-income limit. National lenders that estimate taxes with a flat average can pre-approve you for a payment you won’t actually qualify for. We use the real tax bill on the property you are buying. In Chicago, also budget for the city transfer tax, which buyers pay at $3.75 per $500 of the price.
Sources: Civic Federation, City of Chicago Department of Finance
Cash-out refinance with a bank statement loan
Your home equity can pay off what’s weighing on your business. A bank statement cash-out refinance lets you borrow up to 80% of your home’s value using the same deposit-based income.
Self-employed borrowers use it to pay off credit cards and business lines of credit, buy out a partner, fund equipment, or rebuild savings after a hard year. If you bought or built a home with cash, you can use a cash-out refinance to pull that money back out.
The catch is that cash-out limits tighten fast on large loans. Most lenders cap a large cash-out at 65% of value or less, so knowing which lender goes higher matters more here than anywhere else. The case study below shows what that looks like.
Case study: a $1.3 million cash-out after other lenders said no
A self-employed business owner came to us in 2026 after being denied by several lenders. Here is what happened.
- $1.3Mcash out
- 75%loan-to-value
- 659credit score
- 12 monthsof bank statements
The challenge
He built a new house without a mortgage. Building it drained his savings, and he leaned on credit cards and business lines of credit to keep the business running. He needed $1.3 million in cash out to pay off his credit cards, debts, and business lines, and to refill his savings.
The heavy credit card balances pushed his credit score to 659. The program he needed had a 660 minimum, and almost every lender capped a cash-out that large at 65% loan-to-value.
Our approach
As a broker, we know what each of our lender partners will and won’t do. We qualified him on 12 months of bank statements and placed the loan with a lender that allows 75% loan-to-value on a cash-out that size.
Then we presented the full file to that lender’s underwriting team and asked for an exception so his 659 score could qualify for the 660 program.
The result
The lender approved the exception, and we closed the loan when no one else could. The cash-out paid off his credit cards, debts, and business lines of credit and rebuilt the savings he spent on the build.
Exceptions are decided by the lender, case by case. We can’t promise one, but we know where to ask.
Been told no by another lender? Send us the scenario and we’ll tell you honestly whether one of our lenders can do it.
Book a Call with AlexOther ways self-employed borrowers qualify for a mortgage
A bank statement loan is the most common self-employed mortgage, but it isn’t the only one. Which option gets you the most house depends on how your income shows up on paper.
| Option | How you prove income | Often the best fit for |
|---|---|---|
| Bank statement loan | 12 or 24 months of personal or business statements | Business owners who write off a lot of expenses |
| P&L-only loan | A profit and loss statement prepared by a CPA, enrolled agent, or tax preparer | Owners with clean books whose deposits are hard to follow |
| 1099-only mortgage | 1099 forms plus recent bank statements | Independent contractors, realtors, and commission earners |
| Asset depletion mortgage | Liquid assets converted into a monthly income figure | Retirees, investors, and people with large savings but little income |
| Full-doc conventional loan | 2 years of personal and business tax returns | Owners whose returns already show strong income |
| DSCR loan | The property’s rent, no personal income | Investors buying or refinancing rentals |
P&L-only mortgage
Your qualifying income comes from a year-to-date profit and loss statement signed by a CPA, enrolled agent, or licensed tax preparer, without tax returns or bank statements. It fits owners with good bookkeeping, and it usually needs a higher credit score than a bank statement loan.
1099-only mortgage
If you’re paid on 1099s, the lender works from your 1099 totals and recent bank statements instead of the net income on your Schedule C. It is fast and simple for contractors with one or two steady payers.
Asset depletion mortgage
The lender divides your eligible savings, investment, and retirement balances over a set number of months to create an income figure. It works for people who have money but little reported income, and it can be combined with other income.
Not sure which one fits?
We run your file through every option we offer and show you which gets you the best rate and the most room. Larger purchases may also fit our jumbo loans. For a deeper comparison, see FHA vs. conventional vs. bank statement loans and how to get a mortgage without W-2 income.
The bank statement loan process: 6 steps to closing
How long does a bank statement loan take? The income review takes longer than on a W-2 loan, so we do it up front. Once your statements are in, you’ll have a pre-approval within 24 hours.
Take the 30-second survey
30 secondsTell us about your business, your goal, and your price range. There’s no credit check.
Talk through your options
Same or next business dayAlex calls you to go over how you’re paid, which statements you have, and whether a bank statement, P&L, 1099, or asset-based loan fits best.
Upload your statements
1 to 2 days, at your paceSend 12 or 24 months of statements, all pages, plus proof of 2 years in business. If a CPA letter could raise your income, we tell you what it needs to say.
Get your income calculated and pre-approved
Within 24 hoursWe calculate your income by every method that applies, shop your file across our lenders, and send a pre-approval within 24 hours of a complete file.
Make your offer or start your refinance
Your timelineShop with a real number. We’ll update your pre-approval letter for each offer, or order your appraisal if you’re refinancing.
Close your loan
Target date set at lockWe lock your rate, order the appraisal, clear underwriting conditions, and send your Closing Disclosure at least 3 business days before you sign.
Ready for step one?
Start My 30-Second SurveyTimelines depend on how quickly documents come in, appraisal scheduling, condo approvals, and lender underwriting times. Not a commitment to lend. All loans are subject to credit approval and property eligibility.
Why Illinois business owners choose MacLagan Home Loans
Why work with a broker for a self-employed mortgage? Because bank statement loan lenders don’t agree with each other. A bank offers one set of rules. We bring 120+ lenders to the table.
120+ lenders, one application
Expense factors, credit minimums, cash-out limits, and condo rules all vary by lender. We match your file to the one whose rules fit it, so you apply once instead of five times. Read more on how a mortgage broker compares to national lenders.
We know where the exceptions live
When a file falls just outside the guidelines, we know which lenders will look at it. That is how we closed a $1.3 million cash-out that other lenders had denied.
Your income calculated before you shop
We run your statements by every method that applies and send a pre-approval within 24 hours of a complete file, so your offer carries a number you can count on.
Run by a business owner and investor
Alex has bought, renovated, and rented more than 100 properties and founded his own real estate company. He knows what irregular income looks like from the inside.
Rated 5.0 on Google and A+ with the BBB
62 Google reviews at a 5.0 rating, and BBB accredited with an A+ rating. Read our Google reviews.
Want a second opinion on your self-employed loan options?
See If I Qualify or call Alex at (847) 899-6882Bank statement loans across Chicago and the suburbs
We help self-employed borrowers across Illinois from our Deerfield office. The Chicago metro median sale price reached $401,000 in July 2026, up 6.8% from a year earlier, so qualifying for the full amount matters more every year.
Chicago
Condos and two-flats are a big share of city housing, and some condo buildings are non-warrantable. Bank statement loans cover both, and we budget the $3.75 per $500 city transfer tax into your cash to close.
North Shore and near north suburbs
Prices here can run past the $832,750 conforming limit. Bank statement loans go to about $3.5 million, so you don’t need a separate jumbo program to buy here on deposit-based income.
Northwest suburbs
Bank statement loans fit the contractors, trades businesses, and small-shop owners across these suburbs. Our Deerfield office is a short drive away.
West suburbs
In Naperville and the west suburbs, bank statement loans work for move-up homes and for cash-out refinances that buy out a business partner.
Wisconsin, Minnesota, and Arizona: Alex is also licensed in these states, so we can do bank statement loans for a Wisconsin lake home, a move to the Twin Cities, or a winter home in Arizona, using the same lender network. Contact us or call (847) 899-6882.
Sources: Illinois REALTORS, July 2026 Chicago Metro report, FHFA 2026 conforming loan limits
Bank Statement Loan FAQs
Straight answers to the questions self-employed Illinois borrowers ask us most.
Can I get a loan with just my bank statements?
Yes. A bank statement loan uses 12 or 24 months of personal or business bank statements in place of tax returns and W-2s. You still need a credit check, proof of 2 years in business, and 6 months of reserves, but you don’t need tax returns to prove your income.
What credit score do you need for a bank statement loan in Illinois?
You can qualify for a bank statement loan in Illinois with a credit score as low as 600. At 600 you’ll typically need 20% down on a purchase. A 680 score can lower that to 15%, and a 700 score can get you to 10% down on loans up to $1 million.
How much down payment do I need for a bank statement loan?
Most bank statement loans need 10% to 20% down on a primary home, depending on your credit score and loan amount. Plan on 15% to 20% down for 2 to 4 unit buildings and investment properties, and 20% to 25% down for a non-warrantable condo. Gift funds are allowed with some lenders.
Do bank statement loans have higher interest rates?
Yes. Bank statement loan rates usually run higher than conventional rates because the loans can’t be sold to Fannie Mae or Freddie Mac. The gap depends on your credit score, down payment, loan amount, and property type, and it varies a lot by lender, which is why shopping 120+ lenders pays off.
How hard is it to get a bank statement loan?
It isn’t hard if you meet the core rules: 2 years in business, steady deposits, a 600 or higher credit score, 6 months of reserves, and 3 years since any foreclosure or bankruptcy discharge. Most problems come from unexplained deposits or mixed accounts, and we catch those before you apply.
Can I use personal or business bank statements?
Either. With personal statements, lenders count 100% of the business deposits paid into your account. With business statements, they apply a 50% expense factor, or count up to 90% of deposits with a CPA letter, depending on your industry. We run both to see which gives you more income.
How long do I need to be self-employed for a bank statement loan?
You need 2 years in business, with no exceptions in the programs we offer. You can prove it with a CPA letter, a business license, or your state business registration. You also need to own at least 25% of the business.
Can I get a bank statement loan after bankruptcy or foreclosure?
Yes, once enough time has passed. Our bank statement lenders require 3 years since a foreclosure and 3 years since a bankruptcy discharge. The bankruptcy clock starts on the discharge date, not the date you filed. Late payments since then matter too, so we review your full credit report before matching you with a lender.
Can first-time homebuyers get a bank statement loan?
Yes. First-time homebuyers are eligible for bank statement loans. Some lenders set a higher credit score or a larger down payment for first-time buyers, so we match you with a lender whose rules fit your file. You still need 2 years in business and 6 months of reserves.
Can I refinance out of a bank statement loan later?
Yes. Once your tax returns show enough income, you can refinance into a conventional loan, often at a lower rate. Primary-home bank statement loans in the programs we use have no prepayment penalty, so you can refinance whenever it makes sense.
Is a bank statement loan the same as a DSCR loan?
No. A bank statement loan qualifies you on your personal or business deposits and can be used for a primary home, second home, or rental. A DSCR loan qualifies the property on its rent, with no personal income documents, and is only for investment properties.
Do you offer bank statement loans outside Illinois?
Yes. Alex MacLagan (NMLS #1912744) is licensed in Illinois, Wisconsin, Minnesota, and Arizona and offers bank statement loans in all four states through the same 120+ lender network. Most of our clients are in the Chicago area, and we work with out-of-state borrowers by phone and secure upload.
Have a question that isn’t answered here?
See If I Qualify Book a Call with Alex or call (847) 899-6882