What is a bank statement loan?

A bank statement loan lets self-employed borrowers verify income from personal or business bank statements rather than tax returns, W-2s, or paystubs. It is generally used by self-employed people, small business owners, and independent contractors, and a borrower does not have to own 100% of the business; ownership as low as 25% is allowed.

What is a 1099 income loan?

A 1099 income loan is a non-QM mortgage that qualifies self-employed borrowers using documented 1099 earnings instead of tax returns. The 1099s must come from a single employer and be issued in the borrower's personal name, and the borrower must have worked in the same line of work for at least two years.

A P&L loan is a non-QM mortgage that qualifies self-employed borrowers using a profit and loss statement prepared by a CPA or tax preparer instead of tax returns. Bank statements may not be required at lower loan-to-value ratios, while higher-LTV transactions may require additional documentation to support income stability.

How does a 1099 income loan differ from a bank statement loan?

A 1099 income loan uses documented contractor earnings, while a bank statement loan analyzes deposit history to determine income and may apply a standardized expense factor. Bank statement programs use 12 or 24 months of business or personal statements.

Bridge lenders

Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is the wholesale lending division of Angel Oak Companies and writes non-QM mortgage programs for borrowers who do not fit agency guidelines. It lends through mortgage brokers and originators rather than to borrowers directly, and its programs are built around self-employed borrowers, rental property investors, and foreign nationals.

The program set covers bank statement loans, which use 12 or 24 months of business or personal bank statements, start at a 640 credit score, go to 90% LTV with a minimum 720 score, and run to $4 million with a $150,000 minimum; a bank statement HELOC with a 700 minimum score, up to 85% CLTV, and 15-, 20-, and 25-year term options; 1099 income loans to $3 million for contractors with two years in the same line of work; P&L loans using a CPA-prepared profit and loss statement, to $3 million; DSCR investor cash flow loans from a 680 score, with automated rental AVM and short-term rental analysis options; a DSCR closed-end second lien to 75% LTV; closed-end second mortgages; and foreign national loans to 70% LTV on investment property. Eligible property types include non-warrantable condominiums, manufactured housing, and two-to-four unit properties.

Brokers work through the AngelOak iQ platform, which handles approval, pricing, and closing, starting with a Non-QM QuickQuote for pricing and eligibility. The company says it has more than 10 years specializing in non-QM and over $23 billion in mortgage originations, and describes itself as one of the longest-tenured non-QM wholesale lenders. Business-purpose investment property loans are offered through approved clients even where the client is not licensed in the subject property's state, subject to the listed state conditions.

Guidelines, maximum loan amounts, and state eligibility change, and some products carry state restrictions, including HELOC transactions not being eligible in Texas, so terms should be confirmed with an account executive for the specific scenario.

Best for

Mortgage brokers and their self-employed, investor, or foreign-national borrowers who cannot document income with tax returns; borrowers cannot apply directly and must go through an approved broker.

What they do

Bank statement loans for self-employed borrowers
Bank statement HELOC
1099 income loans
Profit and loss statement (P&L) loans
DSCR investor cash flow loans
DSCR closed-end second lien
Closed-end second mortgages
Foreign national loans
Non-warrantable condo and manufactured housing financing
AngelOak iQ broker platform with Non-QM QuickQuote pricing

Details

Attribute	Value
Ownership	Subsidiary

What stands out

Reports more than $23 billion in mortgage originations and over 10 years specializing in non-QM lending.
Operates as the wholesale lending division of Angel Oak Companies.
Bank statement loans run to $4 million with a $150,000 minimum, from a 640 score, and to 90% LTV with a minimum 720 score.
The bank statement HELOC requires a 700 minimum score, reaches 85% CLTV, and offers 15-, 20-, and 25-year terms.
Business-purpose investment property loans are available through approved clients even where the client is not licensed in the subject property's state.

Common questions

What is a bank statement loan?: A bank statement loan lets self-employed borrowers verify income from personal or business bank statements rather than tax returns, W-2s, or paystubs. It is generally used by self-employed people, small business owners, and independent contractors, and a borrower does not have to own 100% of the business; ownership as low as 25% is allowed.
What is a 1099 income loan?: A 1099 income loan is a non-QM mortgage that qualifies self-employed borrowers using documented 1099 earnings instead of tax returns. The 1099s must come from a single employer and be issued in the borrower's personal name, and the borrower must have worked in the same line of work for at least two years.
What is a P&L loan?: A P&L loan is a non-QM mortgage that qualifies self-employed borrowers using a profit and loss statement prepared by a CPA or tax preparer instead of tax returns. Bank statements may not be required at lower loan-to-value ratios, while higher-LTV transactions may require additional documentation to support income stability.
How does a 1099 income loan differ from a bank statement loan?: A 1099 income loan uses documented contractor earnings, while a bank statement loan analyzes deposit history to determine income and may apply a standardized expense factor. Bank statement programs use 12 or 24 months of business or personal statements.