Bank Statement Loans

Recent Updates - May 14, 2024
  • Second Home or Investment – Now up to 85% LTV (purchase or rate-term refinance)
  • Unlimited cash-out at 50% LTV or below
  • Up to $2M cash-out – 50.01-60% LTV
  • Unlimited NSF/OD’s allowed on bank statements when calculating income
  • Seller concessions for Investment raised from 3% to 6%

Bank Statement: What is it?

The Bank Statement program is a loan created for self-employed

borrowers who can’t qualify for a conventional loan due to tax write-offs

that don’t show their true income when analyzing tax returns.



Bank Statement: How do we qualify?

• Borrower must own business for minimum 2 years

• 1 year self-employment option available if in same line of work for prior 2 years

• 12M or 24M Personal Bank Statements

OR

• 12M or 24M Business Bank Statements

• To use Personal Statements – borrower must own minimum 25%

To use Business Statements – borrower must own minimum 50%

Bank Statement: How is income calculated?

• We have a dedicated team to do the work for you

• Income average taken over 12M or 24M

• 24 hour turn-time – up to 48 hours if using multiple business accounts

• Looking for consistent income deposits month to month

• Expense ratio applied for the business

• Qualified income from our team is what is used for UW

• What I’ll need:

• 1003 (pdf)

• Credit Report

12M or 24M Personal or Business Bank Statements

Bank Statement Types Of Loans

• Purchase | Rate-Term | Cash-Out | Delayed Financing

• Primary, Second Home, or Investment

• Minimum FICO 640

• Purchase or R/T: Up to 90% LTV

• Cash-Out: Up to 80% LTV

• SFR, 1-4 Units, Warrantable & Non-Warrantable Condos, PUD’s, Townhouses

• 6 months reserves required – subject property only

W2 income from a co-borrower may be used if not associated with borrower’s business

Bank Statement: Alt Doc Options

• 1099: 1 or 2 years

• Total 1099 plus YTD earnings, less business expense ratio, annualized

• P&L: 1 or 2 years

• P&L prepared by CPA/Tax preparer

• Requires 2 months most recent business statements w/ deposits supporting gross receipts within 15%

• Max 80% LTV – minimum 720 FICO