Yes. Real estate agents can qualify for a mortgage with 12 or 24 months of bank statements instead of tax returns. The lender adds up your business deposits, takes out an expense factor for your costs, and uses what is left as your income. Most lenders want about two years in the same line of work.
How the money comes in
Commission checks arrive when deals close, so deposits are lumpy. A strong spring can be followed by a quiet month with nothing. Many agents are paid by their brokerage on a 1099, and some run their income through their own LLC.
What the lender looks for in your statements
Lenders average your deposits over 12 or 24 months, so a slow month does not sink you as long as the year is solid. Large commission checks are normal and do not need much explaining when the brokerage name is on them.
Transfers between your own accounts, loan proceeds and other one time money are usually left out. The guide on deposit problems covers how lenders handle large or unusual deposits.
Your costs and the expense factor
Agent costs are usually modest: MLS and board dues, marketing, a car, a phone and brokerage fees. Because the default 50% expense factor often overstates those costs, a CPA letter showing your real expense ratio can raise your qualifying income a lot.
Most lenders start with a 50% expense factor. A letter from your CPA or enrolled agent, or a profit and loss statement prepared by a tax professional, can show lower costs. See how expense factors work.
Proof that the business is real
Your Florida real estate license, issued through the Department of Business and Professional Regulation (DBPR). Lenders also accept a CPA or tax preparer letter confirming how long you have been in business.
Common snags, and how to avoid them
- Splitting commission with a team or partner, so the deposit is not all yours. Show the split agreement.
- Mixing personal spending in the business account, which makes the statements harder to read.
- A recent switch from W-2 to commission. Some lenders accept a shorter history if you did the same work before.
What to gather
- 12 or 24 months of business or personal bank statements, every page.
- Proof of your business or license.
- A CPA or enrolled agent letter if your costs are below half of revenue.
- Recent statements for savings or retirement accounts you will use for the down payment or reserves.
Other loans to compare
If your brokerage issues a 1099 for most of your income, a 1099 loan may be simpler than bank statements. Bank statement loans usually cost more than a conventional loan and ask for a larger down payment, so I check whether a standard loan can count your income first.
More jobs: bank statement loans by job · Back to no tax return loans · bank statement loan requirements
Common questions
Can real estate agents get a mortgage without tax returns?
Yes. A bank statement loan uses 12 or 24 months of deposits instead of tax returns. Most lenders want about two years in the same line of work.
What expense factor will the lender use?
Most lenders start at 50% of deposits. A CPA or enrolled agent letter, or a third party profit and loss statement, can support a lower number if your real costs are lower.
Do bank statement loans cost more?
Usually, yes. Expect a higher rate and a larger down payment than a conventional loan. The exact cost depends on your credit, down payment and documents.