What is a bank statement loan and how does it work in Washington?

A bank statement loan qualifies your income by averaging 12–24 months of bank deposits instead of W-2s or tax returns. It's designed for self-employed borrowers, business owners, freelancers, and gig workers in Washington whose tax returns dramatically understate actual cash flow. Personal or business bank statements work. Lenders apply an expense ratio to business deposits to determine qualifying income. Rates are higher than conventional — typically 1–2% above — but access to financing that actually matches your real income is often worth it.