A bank statement mortgage is a type of mortgage that relies on the borrower's bank statements, rather than traditional proof of income, to demonstrate their ability to repay the loan. This type of mortgage is often used by self-employed individuals or small business owners who may have a harder time providing traditional proof of income, such as pay stubs or W-2 forms.

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To qualify for a bank statement mortgage, borrowers must provide their bank statements for the past 12 to 24 months, depending on the lender's requirements. The lender will then review the bank statements to determine the borrower's average monthly income and to verify that they have a consistent flow of income. In addition to the bank statements, borrowers may also be required to provide other documentation, such as tax returns and business financial statements, to support their application.

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One advantage of a bank statement mortgage is that it allows self-employed individuals and small business owners to qualify for a mortgage even if they don't have traditional proof of income. This can be especially helpful for those who have fluctuating income or who have recently started their own business and may not have a long track record of steady income.