Yes. Restaurant owners 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
Restaurants take in card batches every day, plus delivery app deposits. Food, payroll, rent and supplies go out just as fast.
What the lender looks for in your statements
Daily card batches and delivery app deposits are counted. Sales tax you collect is not really yours, and lenders look at your costs with that in mind. Transfers from owners and loans are removed.
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
Restaurants are high cost businesses. Food, labor and rent often take most of revenue, so the default 50% expense factor usually works in your favor.
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 food service license from the DBPR Division of Hotels and Restaurants, your Sunbiz filing and the lease for your location. Lenders also accept a CPA or tax preparer letter confirming how long you have been in business.
Common snags, and how to avoid them
- Several locations with separate accounts. Lenders may want statements for each.
- Owner loans to the business that look like revenue.
- A thin margin year after a slow season.
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
Because restaurant costs are high, bank statements are often the best fit. Compare with a P&L loan if your books show a stronger year. 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 restaurant owners 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.