Yes. Truck drivers and owner operators 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
Owner operators are paid per load by a carrier, a broker or a factoring company. Money comes in often, but a large share goes right back out for fuel, maintenance, insurance and truck payments.
What the lender looks for in your statements
Lenders count the payments from carriers, brokers and factoring companies. Fuel card refunds, loan proceeds and transfers between your own accounts are usually taken out.
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
Trucking is a high cost business. Fuel, repairs, tires, insurance and the truck note can eat well over half of what comes in. That is where the default 50% expense factor can help you, because your real costs may be higher than the lender assumes.
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 USDOT number and operating authority if you run under your own authority, or your lease agreement with a carrier. Lenders also accept a CPA or tax preparer letter confirming how long you have been in business.
Common snags, and how to avoid them
- Factoring advances that show up twice: once as the advance and again as the rebate. Point these out so they are not double counted.
- A truck payment that is in your personal name counts as a debt unless the business pays it and you can prove it.
- Leasing onto a carrier for only a short time before applying.
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 carrier pays you on a 1099, compare a 1099 loan. Owner operators with high costs often do best on 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 truck drivers and owner operators 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.