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Last updated: Sept 2026. By Alvaro Moreira, NMLS #148581. Moreira Team | MortgageRight. MortgageRight NMLS #2239; Atlanta Branch NMLS #1285851.
The short answer: who these loans are for
If you are self-employed or own a business in Georgia, your tax returns may show far less income than you actually earn, because deductions and write-offs are doing their job. A bank statement loan lets you qualify on the deposits in your bank statements instead, and it is one of a family of Non-QM loans built for borrowers whose finances are strong but do not fit the standard documentation box. These are mainstream, widely offered loans, and they are not the same thing as subprime.
What is a Non-QM loan?
A qualified mortgage, or QM, is a category defined by the Consumer Financial Protection Bureau under the federal Ability-to-Repay rule. QM loans avoid certain risk features and document income in standard ways. A Non-QM loan is simply one that falls outside those guidelines, most often because it uses alternative income documentation. The lender still has to confirm you can repay the loan; it just does so with a different set of documents. Non-QM is about how income is proven, not about lowering the bar for who can borrow.
How a bank statement loan works
Instead of tax returns and W-2s, the lender reviews 12 or 24 months of your personal or business bank statements and uses your deposits to estimate qualifying income. When business accounts are used, the lender applies an expense factor to reflect the cost of running the business, so the qualifying figure is a reasonable picture of what the business actually nets. The result is an income number that tracks your real cash flow rather than your after-deduction tax figure.
How to qualify in Georgia
Requirements vary by lender and program, more than they do on a conventional loan, which is why it helps to shop the file. Common starting points:
- Bank statements. Usually 12 or 24 months, personal or business.
- Down payment. Typically larger than a standard conforming loan, often starting around 10% to 20% depending on credit and the program.
- Credit score. Minimums vary by program; stronger credit opens more options and better terms.
- Reserves. Several months of payments in liquid assets are commonly expected.
- Time in business. Lenders generally want to see an established, ongoing business, often two years, though some programs are more flexible.
Treat each item as a common expectation rather than a fixed rule, and confirm the current program terms before relying on a specific figure.
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Other Non-QM options
Bank statement loans are the best known Non-QM program, but they are not the only one. Depending on how your income is best documented, the right fit might be:
- Asset-based or asset-depletion loans, which qualify you from substantial liquid assets rather than monthly income.
- 1099-only loans, for contractors and gig workers who are paid on 1099s.
- Profit-and-loss statement loans, which use a business P&L, sometimes prepared or reviewed by an accountant.
- DSCR loans, for investors qualifying on a rental property’s cash flow.
Who this fits in Georgia
Metro Atlanta has a large and growing community of business owners, independent professionals, contractors and gig workers, and bank statement and Non-QM loans were built for exactly that kind of income. If you have been told your tax returns do not show enough to qualify, even though your business is doing well, this is often the path worth exploring.
Costs and closing in Georgia
Georgia’s intangible recording tax of $1.50 per $500 of the loan amount, about 0.30%, applies to these loans as it does to any Georgia mortgage. Georgia also requires that a Georgia attorney control the closing. Plan for those, along with the appraisal, title work, recording fees and closing services; our Georgia closing costs guide covers the full picture.
Frequently Asked Questions
What is a Non-QM loan?
A Non-QM (non-qualified mortgage) loan is a home loan that does not fit the Consumer Financial Protection Bureau’s qualified mortgage guidelines, usually because it uses alternative income documentation. Non-QM is not the same as subprime; it serves borrowers whose finances do not fit the standard documentation box.
How does a bank statement loan work?
Instead of tax returns and W-2s, the lender reviews 12 or 24 months of your personal or business bank statements and uses your deposits to estimate qualifying income. For business accounts, an expense factor is usually applied to reflect operating costs.
Who is a bank statement loan for in Georgia?
It is designed for self-employed people, business owners, and 1099 or gig workers whose tax returns understate their real cash flow because of deductions and write-offs. Metro Atlanta’s large small-business community is a common fit.
What credit score and down payment do I need?
Requirements vary by lender and program. Expect a larger down payment than a standard conforming loan, often starting around 10% to 20%, along with a qualifying credit score and some reserves. Confirm the current program terms before relying on a figure.
Can I use a bank statement loan for a primary residence?
Yes. Bank statement and other Non-QM loans can be used for a primary home, a second home, or an investment property, depending on the program.
What other Non-QM options are there?
Besides bank statement loans, Non-QM programs can include asset-based or asset-depletion loans, 1099-only loans, profit-and-loss statement loans, and DSCR loans for investors. The right fit depends on how your income is best documented.