Qualify on what actually hits your account.
Bank statement programs let self-employed borrowers document income with 12 or 24 months of deposits instead of tax returns. If your returns are optimized to minimize taxes, they may show a fraction of what your business really generates. This is how lenders see the rest.
- Have owned your business for at least two years
- Show much less on tax returns than you deposit
- Can put 10–20% down and keep reserves
- Have credit in the mid-600s or better
How the math works, with made-up numbers
A contractor’s business account shows $420,000 in eligible deposits over 24 months. The lender applies a 50% expense factor for the business type, leaving $210,000, or $8,750 per month of qualifying income. Her tax returns, after legitimate write-offs, showed about $3,900 per month.
At $8,750 of qualifying income, a debt ratio in the mid-40s supports a payment range that makes a $600,000 purchase realistic with 15% down. On tax-return income it wasn’t. A CPA letter attesting to a lower expense ratio could raise the qualifying figure further.
What counts, what gets excluded, and what you’ll be asked.
Personal statements usually count deposits in full if the business pays you; business statements get an expense factor. Mixing accounts requires showing ownership percentage.
Commonly 50% for business accounts, with lower factors (say 20–35%) available for low-overhead businesses with a CPA or tax-preparer letter. Investor rules to be confirmed.
Transfers between your own accounts, loan proceeds, refunds, and large one-offs that can’t be tied to business revenue. Expect questions on anything unusual.
Twenty-four months gives a steadier average and often better pricing; twelve can work for a growing business. Declining deposits raise flags either way.
Many programs start at 10% down with strong credit; 15–20% is more common. Several months of reserves are typical. Rates sit above agency pricing.
Two years of self-employment shown by a license, CPA letter, or filings. Ownership percentage matters for business-account deposits.
The checklist.
- 12 or 24 months of consecutive bank statements, every page
- Business license or other proof of two years in business
- CPA or tax-preparer letter (ownership percentage, expense ratio if applicable)
- Photo ID
- Two months of asset statements for down payment and reserves
- Explanation of any large or non-business deposits
- For purchase: the contract; for refinance: current mortgage statement and insurance
Common questions
Do I have to provide tax returns at all?
Can W-2 employees use this?
Can I use it for a refinance?
Is there a prepayment penalty?
Tell Jared about your business and roughly what you deposit.
He’ll estimate qualifying income the way an underwriter would, before you order statements.
- No credit pull, no obligation
- Not an application; no guarantee of approval or terms
- Rather talk? Call or text 954-649-0020
Your returns were built to save taxes. Your mortgage shouldn’t punish that.
Jared can tell you what your statements would support.