Deposits over the statement period are totaled, transfers between your own accounts are removed, and for business accounts an expense factor is subtracted to reflect operating costs. The result is divided by 12 or 24 to arrive at monthly qualifying income. Personal statements are usually counted at 100 percent of deposits because expenses have already been paid out of the business.

Most lenders default to a factor between 20 and 50 percent depending on your industry, and many allow a CPA letter or a profit-and-loss statement to document a lower actual expense ratio. A low-overhead consulting business and a restaurant with heavy cost of goods are treated differently, which is one reason lender selection matters.

Two years is the most common requirement. Several lenders accept one year of self-employment when you have prior experience in the same line of work, and a few accept less with strong compensating factors. We match the file to the lender rather than the other way around.

Generally yes, because the lender is documenting income outside agency guidelines and holds the loan or sells it to a private investor. The gap depends on your credit score, down payment, and the statement period. Twenty-four months of statements and a larger down payment narrow it. We compare against a conventional loan whenever your returns support one.

Yes. Bank statement programs are available for second homes and investment property with larger down payments. For a pure rental, a DSCR loan that qualifies on the property's rent may be simpler, and we will show you both.

Yes, including cash-out refinances. Owners who took a hard-money or private loan to close quickly, or who want to pull equity for the business, use bank statement refinances regularly.

Send us the last 12 months of business bank statements. Within a day we can tell you whether the deposits qualify you, at what price range, and with which lenders. A denial based on net taxable income is the single most common reason a self-employed buyer ends up on a bank statement loan, and it is usually fixable.

Yes. Several bank statement programs go to $3 million and beyond. Jumbo bank statement loans typically want a larger down payment, 24 months of statements, and more reserves than a conforming-sized loan, and the lender list is shorter. We run the file against the lenders that price jumbo bank statement loans competitively rather than the ones that merely allow them.