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Can First-Time Home Buyers Get a Bank Statement Loan?

Yes. First-time home buyers qualify for bank statement loans on the same terms as anyone else: a 620 minimum credit score (best pricing at 740+), down payments from 10% on a primary residence, and 12 or 24 months of bank statements in place of tax returns. Gift funds from family are allowed toward the down payment. You still need at least two years of self-employment in the same line of work, confirmed by a CPA or licensed tax preparer.

Reviewed by David Blackmon

Mortgage Advisor · Portland, OR · NMLS #1017565 · Updated October 17, 2026

Key Facts

First-time buyers eligible on the same terms as repeat buyers
Minimum credit score 620 — best pricing with strong credit (740+)
Down payments from 10% on a primary residence
Gift funds allowed toward the down payment
12 or 24 months of bank statements — no tax returns or W-2s
2+ years self-employed in the same line of work

Why Self-Employed First-Time Buyers Get Stuck

Conventional and FHA loans qualify you on the net income from your tax returns. For many business owners, write-offs shrink that number well below what the business actually earns — so a first-time buyer who can comfortably afford a home gets approved for far less, or not at all. A bank statement loan reads income from your deposits instead. See how bank statement loans work.

Same Terms as Repeat Buyers

Being a first-time buyer doesn't change the program. The minimum credit score is 620, with best pricing at 740+. Down payments start at 10% on a primary residence — at that level, expect to need stronger credit (typically 700+) and solid reserves, while a larger down payment widens your options. Purchase and refinance are both eligible.

Using Gift Funds

Gift funds from family are allowed toward the down payment, which helps first-time buyers who are building savings while growing a business. The gift needs to be documented with a signed gift letter and a paper trail showing the transfer, so the deposit doesn't look like unexplained income in your statements.

Choosing Your Statements

Use 12 months if your income has grown recently, or 24 months for a steadier average when deposits swing. Personal statements are counted as-is; business statements have an expense factor applied, typically 50%. Compare both in 12 vs. 24 months and personal vs. business, and estimate your number with the bank statement income calculator.

How to Prepare

Line up a CPA or licensed tax-preparer letter confirming two years of self-employment, keep business deposits in one primary account, and be ready to explain any large non-business deposits. The full list is in the bank statement loan document checklist. When you're ready, start your application — it takes under 10 minutes with no impact to your credit score.

Realtor Referral

Looking for a realtor referral in your market?

We've worked alongside a curated bench of buyer's and listing agents across Oregon and California. Tell us your target market and price range and we'll personally introduce you to one or two who fit — no fees, no obligation.

No directory. No paid placements. No RESPA-restricted referral fees. We've worked alongside these pros on real Oregon and California deals — we'll make a personal email introduction so you can interview them yourself.

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Licensed in Oregon & California · NMLS #1498678