A bank statement mortgage is a type of mortgage loan that is designed for self-employed individuals or business owners who have non-traditional income sources or irregular income patterns. Instead of providing W-2s or tax returns, the borrower provides bank statements or other financial documents to demonstrate their income and ability to repay the loan.

With a bank statement mortgage, the lender will typically review the borrower's bank statements from the past 12 to 24 months to determine their average monthly income. This approach allows self-employed individuals and business owners to qualify for a mortgage based on their actual income rather than their taxable income, which can be lower due to business deductions.

Bank statement mortgages may have higher interest rates and fees compared to traditional mortgages, as they are considered higher risk loans. However, they can be a good option for borrowers who have difficulty qualifying for a traditional mortgage due to their self-employment status or irregular income patterns.