Best Bank Statement Loans for a 2nd Mortgage, According to Experts

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Self-employed and interested in tapping into your home's equity with a second mortgage? A bank statement loan can help you bypass traditional tax return requirements, which can muddle the reality of freelance and business income.

The paperwork to secure a second mortgage may feel overly rigid for self-employed professionals, freelancers and entrepreneurs. Traditional lenders often rely on tax returns to verify income, which can challenge those with fluctuating or multiple income streams. Enter a terrific alternative: bank statement loans.

“[A bank statement loan] is a great way for borrowers to demonstrate that they can financially afford a mortgage without providing tax returns,” says Adam Hamilton, CEO of REI Hub, a rental accounting software company. “A lot of the time, this is a great option for freelancers who might not have a super predictable income but do have enough money for a mortgage or freelancers who have so many different streams of income it just makes providing tax returns complicated.”

We thoroughly evaluated the market and identified some of the best bank statement lenders for second mortgages. Whether you’re looking to tap into your home’s equity for renovations, debt consolidation or other financial aspirations, this guide can help you better understand bank statement lending and find a second mortgage solution tailored to your needs.

Quick Winners List

• Best Overall: New American Funding
• Best for Investment Properties: Angel Oak Mortgage Solutions
• Best for Self-Employed: Griffin Funding
• Best Online: SoFi
• Best for Bad Credit: CrossCountry Mortgage

Best Overall: New American Funding

Pros:

• Offers a wide variety of loan types, including conventional, FHA, VA and jumbo loans
• Strong customer service with a focus on personalized support
• High customer satisfaction ratings and a reputation for transparency
• Highly user-friendly mobile app

Cons:

• Limited physical branches, which may be a drawback for those preferring in-person service
• Rates may not always be the most competitive. 

New American Funding (NAF) earned recognition as a leading bank statement lender thanks to its exceptional reputation. The lender's outstanding customer review rating of 4.69/5 on the Better Business Bureau website bucks the usual trend where lenders are flooded with negative reviews from disgruntled borrowers.

NAF is a terrific mortgage lender overall. However, its wide range of loan options, competitive rates and flexible credit requirements make it exceptionally friendly for self-employed borrowers who are ready to furnish a bank statement but less inclined to share tax returns. Whether you're securing a second mortgage or exploring other financing needs, NAF stands out for its transparent fees, borrower-friendly perks and online accessibility. Although physical branches are limited, New American Funding can work with borrowers in all 50 states and Washington, D.C.

Best for Investment Properties: Angel Oak Mortgage Solutions

Pros:

• Specializes in non-traditional loans, making it easier to finance investment properties
• Flexible underwriting for self-employed borrowers and those with complex income situations
• Offers unique loan products like DSCR (Debt Service Coverage Ratio) loans for rental properties
• Personally assigned loan officers for tailored, one-on-one support.

Cons:

• Higher interest rates compared to conventional lenders
• Limited availability in some states

Leveraging your home equity isn’t limited to primary residences. You may also want to tap into an investment property with a second mortgage. Angel Oak, a great option to secure an investment property with a bank statement loan, can also be a great partner for second mortgage options. Angel Oak specializes in non-QM loans, or non-qualified loans that aren't backed by Fannie Mae and Freddie Mac but are more flexible, making it an excellent lender for those whose income doesn't fit the traditional biweekly pay stub mold. 

Angel Oak will loan up to $750,000 in HELOC for self-employed borrowers who can furnish business bank statements and up to $500,000 for personal bank statements. There are no restrictions on how the funds can be used, so you can put them back into the property for renovation and maintenance or spend the funds elsewhere. The FICO requirements aren't too lofty at 660 to qualify for the program. 

Best for Self-Employed: Griffin Funding

Pros:

• Specializes in bank statement loans, ideal for self-employed borrowers without traditional income documentation
• Flexible loan options for investment properties, vacation homes and refinancing
• High customer satisfaction with an A+ BBB rating and 4.96/5-star reviews
• Competitive rates

Cons:

• Requires a minimum credit score of 620, which may exclude some borrowers
• Loan amounts start at $100,000, which may not suit those seeking smaller loans

Griffin Funding is another non-QM loan specialist. If you're self-employed, Griffin Funding clearly outlines how you can apply for a bank statement mortgage. It includes allowing 100% of personal bank statement deposits to count as income and 50% (or more, depending on business type) of business bank statement deposits.

With an A+ rating from the Better Business Bureau and an impressive Customer Review Rating of 4.96/5 stars, Griffin Funding has established itself as a trusted and reliable lender in the industry. For a cash-out refinancing option – which is not a type of second mortgage – you can access up to 80% of your property's value. If you want to access more than 80% of your home’s equity without affecting the interest rate on your existing first mortgage, bank statement home equity loans (HELOANs) are a second mortgage option Griffin offers.

One note that can be a tougher barrier to qualifying: You must have been self-employed for at least two years to qualify for bank statement lending at Griffin Funding. However, business owners with less than two years of self-employment but at least two years of experience in the same industry may get an exemption. 

Best Online: SoFi

Pros:

• Fully digital application process, making it fast and convenient
• No origination fees or prepayment penalties 
• Competitive rates and discounts for existing SoFi members
• Excellent rating on Trustpilot

Cons:

• Limited loan options compared to traditional lenders (e.g., no FHA or VA loans)
• No in-person support, which may not suit all borrowers

SoFi was a pioneer in the digital-first banking world, so it follows that the brand is also a big name in online mortgage lending. The lender offers flexible borrowing using bank statement loans, which can be applied to tap into your home equity in the form of a HELOC, or a home equity loan (which both fall under the broader umbrella of "second mortgages"). The mobile app is highly user friendly – one of the many reasons SoFi has a 4.4/5 rating from Trustpilot. 

You won't have to refinance your first mortgage, allowing you to lock in a lower interest rate. A SoFi second mortgage with a bank statement is a great way to tap into some of your assets without resorting to high-interest options like a credit card. Qualified borrowers can access up to 90% of their home's equity, with a $500,000 limit.

Best for Bad Credit: CrossCountry Mortgage

Pros:

• Customizable loan solutions for self-employed individuals
• Offers FHA loans with credit scores as low as 500
• Wide range of loan options, including USDA and VA loans for borrowers with lower credit
• Strong nationwide presence with local loan officers for personalized service

Cons:

• Higher fees and interest rates for borrowers with poor credit
• Mixed customer reviews regarding communication and processing times

CrossCountry Mortgage stands out as a leading lender for borrowers seeking the best bank statement loan for a 2nd mortgage, particularly for those who don’t want to rely on tax returns to qualify, and have less-than-stellar credit scores. 

This lender accepts bank statement borrowers with credit scores as low as 580, making it accessible to a wide range of applicants. Its bank statement mortgage program allows you to qualify using personal or business bank accounts, with loan amounts reaching up to $6 million for eligible borrowers. In addition to bank statement loans, CrossCountry Mortgage offers FHA loans and condo loans, providing flexibility for various financial needs.

CrossCountry Mortgage is also fittingly named, as it is licensed to operate in over 20 states, including California, Florida, Texas, New York and Illinois. CrossCountry Mortgage is a top contender if you’re looking for a reliable and customer-focused lender for your second mortgage.

What is a Bank Statement Loan?

“A bank statement loan is a type of mortgage loan where lenders specifically assess your bank statement when analyzing your financial health/situation,” Hamilton says. “They will typically ask that you provide 12-24 months’ worth of bank statements. This is a great way for borrowers to demonstrate that they can financially afford a mortgage without providing tax returns.”

The classic candidates for bank statement loans are freelancers, who often have multiple income streams and complicated tax returns, or small business owners and entrepreneurs, whose tax returns, with business write-offs, paint a more frigid financial picture than their actual earnings. 

What’s Different About Getting a Bank Statement Loan on a First Mortgage vs. Second Mortgage?

“Borrowers should know that underwriting becomes more complicated when applying for a bank statement loan for a second mortgage,” says Humberto Marquez, founder and real estate strategist at gethomecash.com. “The extra layer of risk requires more in-depth examination of a borrower's financial well-being.”

So, while a first mortgage often offers simpler documentation and lower interest rates, Marquez says securing a second mortgage through a bank statement loan typically demands a more robust demonstration of strong cash flow. 

“It means borrowers have to deal with more stringent underwriting requirements, higher interest rates and the need for more extensive documentation than just proof of income,” Marquez says. 

He adds that lenders may also act more conservatively with their loan-to-value ratios and request detailed evidence of financial security, which can be burdensome for borrowers with fluctuating incomes. Marquez suggests connecting with and comparing lenders to carefully analyze underwriting policies, fees, interest rates and the general loan's flexibility.

Why You Should Trust Us

At Benzinga, we’ve been a leading voice in financial news and insights since 2010, delivering accurate, up-to-date information on mortgage lending and beyond. Our mission is to equip readers with the knowledge to navigate complex financial decisions, such as navigating the second mortgage process via non-traditional loans. To ensure the highest level of expertise, we’ve consulted industry professionals and conducted in-depth analyses of the top bank statement loan lenders featured in this guide.

The author, Emma Witman, is a seasoned journalist with a strong background in personal finance and homeownership topics. Her work has been featured in outlets like Business Insider, where she has helped readers make prudent personal financial decisions. Her keen interest in helping consumers make informed choices extends to health and wellness, with contributions to publications such as This Old House, Men’s Journal, Sports Illustrated and Lifehacker. 

Methodology 

Benzinga conducted a comprehensive analysis of over 100 mortgage lenders and brokers to identify the best lenders for bank statement loans on second mortgages. We prioritized lenders offering flexible loan options tailored to self-employed borrowers and those with non-traditional income documentation. Key factors included competitive interest rates, closing timelines of 30 days or less and customer satisfaction ratings. We also emphasized lenders with user-friendly digital tools, such as online applications and mobile apps, to streamline the borrowing process. Additionally, we considered transparency in fees and the availability of resources to help borrowers understand their options. For a deeper look at our evaluation process, you can explore our full methodology.

FAQ

Sources

Interview with Humberto Marquez, founder and real estate strategist at gethomecash.com, via email on Feb. 28, 2025.

Interview with Adam Hamilton, CEO, REI Hub, via email on Mar. 2, 2025.

Online lender information sourced from company websites, including Angel Oak Mortgage Solutions, CrossCountry Mortgage, Griffin Funding, New American Funding and SoFi.

Review data sourced from Trustpilot and the Better Business Bureau (BBB).