Bank Statement

Bank statement loans for the self-employed who write everything off.

Qualify on 12 or 24 months of business deposits. The IRS sees one number. Your lender should see the other.

Calculate my qualifying income See a sample file

How qualification works

Three steps from deposits to approval.

No tax returns. The lender derives qualifying income directly from your bank statements.

01
Provide statements
12 or 24 months of business bank statements. 12mo prices ~25bps higher; 24mo unlocks the best programs.
02
Expense ratio applied
Lender applies an expense ratio — typically 50%, sometimes less for service businesses. Devon negotiates the ratio case-by-case.
03
Qualifying income
Whatever’s left becomes your qualifying monthly income. Run DTI against your new payment. Done.

Worked example: $80,000 average monthly deposits × 50% expense factor = $40,000 qualifying monthly income = $480K annual. A borrower with $60K of net Schedule C on their tax return qualifies as a $480K earner here.

At a glance

Bank Statement, in numbers.

Rate (30y)

From 7.50%*

*Devon to confirm weekly

Loan amount

$200K – $4M

Higher with strong reserves

Min credit

660

700+ for best pricing

Min down

10% (PMI alt) / 15% standard

20% removes PMI add-on

DTI cap

50% on derived income

Calculated against statement-derived monthly

Statements required

12 or 24 months

12mo prices ~25bps higher

Property types

Primary, second home, investment

Investment uses tighter LTV

Who this is for

Four borrowers Bank Statement was built for.

Your W-2 friend with half your income just got approved for more house than you can. We’re fixing that.

Realtor / commission earner

Your 1099 income oscillates and your write-offs gut your AGI. Tax returns understate what you actually take home. Bank statements show the real cash flow — that’s what we qualify on.

Sounds like me

E-commerce founder taking S-corp distributions

You pay yourself a modest W-2 and take the rest as distributions. The W-2 number won’t pre-approve you for the house you want. Business statements + personal deposits build a true picture.

Sounds like me

Restaurant owner, strong deposits, weak returns

Cash-heavy business, aggressive depreciation, working capital reinvested. Your CPA optimized for taxes; we’ll qualify you on what your accounts actually do month-to-month.

Sounds like me

1099 contractor

Consultant, IC engineer, freelance creative. Two years of 1099s plus consistent deposits puts you on a stronger footing than a 2-year Schedule C ever would. Devon picks the lender that prices your file best.

Sounds like me

Underwriting, honestly

What to expect when the file goes in.

Underwriters will line-item any deposit over $5,000. They’ll ask: what is it, where did it come from, why isn’t it labeled. Have an answer for each one.

Internal transfers between your business and personal accounts should be labeled. Owner draws should be obvious. Loan deposits or capital injections need a one-line explanation and a paper trail.

Devon coaches every Bank Statement client through this before the file goes in — we’d rather spend 30 minutes on prep than two weeks chasing conditions. The clients who’ve been burned by retail lenders treat this honesty as the reason they refer everyone they know.

FAQ

Bank Statement, answered.

Can I use personal statements instead of business?

Yes — with a different expense ratio. Personal statements typically use a 100% ratio (we use the deposits as-is) but you can’t exclude business expenses. For most self-employed borrowers the math works out better on business statements with a 50% factor.

What if I have two businesses?

We can combine income from both. You provide statements from each business account; the lender applies the same expense ratio to each and sums the qualifying income. Tell Devon up front — some lenders cap blended income, others don’t.

Will an NSF kill my file?

A single NSF in 12–24 months is usually fine with a written explanation. Three or more in the last 6 months is a problem. If you’ve been overdrawn recently, wait 2–3 clean months before submitting — we’ll get a much better outcome.

Can my CPA confirm the expense ratio?

Yes — and on the strongest programs, a signed CPA letter stating your actual expense ratio can override the lender’s default. If your real ratio is 30% (e.g. service business with low cost of goods), a CPA letter saves you meaningfully on qualifying income.

How does this work for a 1099 / W-2 hybrid?

We can combine: W-2 income on the standard documents, 1099 income via bank statements. Most hybrid earners qualify for materially more this way than they would on a pure W-2 conventional loan.

Qualify on what you actually earn.

Send Devon 12 months of statements and we’ll run the math the same day — before underwriting ever sees the file.

Calculate my income

Bank statement loans for the self-employed who write everything off.

Three steps from deposits to approval.

Bank Statement, in numbers.

Four borrowers Bank Statement was built for.

Realtor / commission earner

E-commerce founder taking S-corp distributions

Restaurant owner, strong deposits, weak returns

1099 contractor

What to expect when the file goes in.

Bank Statement, answered.

Qualify on what you actually earn.

Let’s find your loan.