If you’re self-employed and house hunting in the Windy City, traditional mortgage requirements may not work in your favor. That’s where Chicago bank statement loans step in—designed specifically for entrepreneurs, freelancers, and small business owners who need flexible, non-traditional financing.

In this 2025 guide, we’ll walk you through everything you need to know about bank statement loans in Chicago: what they are, how they work, who qualifies, and how to apply successfully.

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What Is a Bank Statement Loan?

A bank statement loan is a non-QM (non-qualified mortgage) option designed for self-employed borrowers. Instead of relying on tax returns, W-2s, or pay stubs, lenders use your personal or business bank statements over 12 or 24 months to determine income.

This loan type is ideal for:

• Business owners
• Freelancers and gig workers
• 1099 contractors
• Self-employed real estate investors

👉 Explore all loan options for self-employed buyers

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Why Choose a Bank Statement Loan in Chicago?

With a vibrant small business community and a booming housing market, Chicago bank statement loans are becoming the go-to solution for self-employed buyers.

✅ Key Benefits:

• No tax returns or W-2s required
• Based on real cash flow from bank statements
• Can use personal or business accounts
• Ideal for buyers who take many tax deductions
• Fast and flexible underwriting

Whether you’re buying a single-family home in Logan Square or a duplex in Berwyn, these loans give self-employed borrowers a competitive edge.

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How Chicago Bank Statement Loans Work

Instead of traditional income verification, lenders analyze your bank statement deposits. Here’s how they typically calculate income:

• Business Bank Statements: 50–90% of deposits averaged monthly
• Personal Bank Statements: 100% of deposits averaged monthly

📌 Lenders usually review 12 or 24 months of statements. Submitting more bank statements can help you get a lower interest rate.

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Chicago Bank Statement Loan Requirements in 2025

To qualify for a bank statement loan in Chicago, here’s what most lenders will look for:

📋 Eligibility Criteria:

• Minimum of 12–24 months self-employment history
• Valid business license or CPA letter (if applicable)
• Proof of business existence (website, EIN, etc.)

💳 Credit Requirements:

• Minimum credit score: 620–680, depending on lender
• Lower debt-to-income (DTI) ratios preferred (max 50%)

💼 Documentation Checklist:

• 12–24 months of personal or business bank statements
• Driver’s license or government ID
• Signed borrower authorization form
• Optional: Profit & Loss statements or 1099s

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Step-by-Step: How to Apply for a Chicago Bank Statement Loan

Getting approved doesn’t have to be hard. Here’s the process we follow at MacLagan Home Loans:

Step 1: Pre-Qualification

• Complete our Bank Statement Loan Qualifier below.
• Upload your bank statements and basic details

Step 2: Loan Matching

• We shop your file across multiple non-QM lenders
• Compare offers, interest rates, and requirements

Step 3: Get Pre-Approved

• Receive a letter showing your approved loan amount
• Ready to make offers with confidence

Step 4: Underwriting & Closing

• We handle appraisals, underwriting, and final closing documents
• Most files close in 21 days or less

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Pros and Cons of Chicago Bank Statement Loans

✅ Pros:

• Flexible income documentation
• Works with self-employed tax strategies
• Can use for primary, second homes, or investment properties
• Still qualify for your mortgage while taking all of your deductions on your tax returns

⚠️ Cons:

• Slightly higher interest rates vs. conventional loans
• Larger down payment requirements (typically 10–20%)
• Not available through every lender

Alternatives to Bank Statement Loans in Chicago

If a bank statement loan doesn’t align with your situation, consider:

• Conventional Loans: Require full tax return documentation
• FHA Loans: Great for buyers with lower credit scores; lower down payments
• DSCR Loans: Based on rental income rather than personal income
• VA Loans: Use your liquid assets instead of income

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Start Your Bank Statement Loan in Chicago Today

If you’re self-employed and ready to buy a home, don’t let traditional lending hold you back. At MacLagan Home Loans, we specialize in helping freelancers, contractors, and entrepreneurs qualify for Chicago bank statement loans.

📞 Let’s talk about your goals—or get started now by completing our quick Loan Qualifier below

📍 Serving all of Chicagoland: Arlington Heights, Aurora, Berwyn, Bolingbrook, Cicero, Elgin, Evanston, Joliet, Naperville, Oak Lawn, Schaumburg, Skokie, Waukegan & more.