Bank Statement Income Estimator
Self-employed? Estimate your qualifying income using bank statement deposits instead of tax returns.
Sum of all deposits across your 24 months of statements
Lenders apply an expense factor based on your industry. This determines what percentage of deposits count as income.
What happens if rates rise while you wait?
Each 0.25% rate increase reduces your max loan by ~3%. Protect your purchasing power.
Frequently Asked Questions
What is a bank statement loan?
A bank statement loan uses your personal or business bank deposits to verify income instead of tax returns. It's designed for self-employed borrowers whose tax returns may not reflect their true earning capacity due to business write-offs and deductions.
How are bank statement deposits calculated for qualifying income?
Lenders total all eligible deposits over 12 or 24 months, then apply an expense factor based on your business type. The remaining amount after the expense deduction is your monthly qualifying income.
What expense factor will my lender use?
Expense factors vary by business type: 40% for professional services (doctors, lawyers), 50% for service businesses (consulting, IT), 60% for retail, and 65% for restaurants. Some lenders allow a CPA letter to justify a custom lower factor.
Can I use personal bank statements instead of business?
Yes. Most lenders accept either personal or business bank statements. Personal statements typically have a lower expense factor applied. Some lenders require both if deposits flow through a business account first.
Do I need a CPA letter for a bank statement loan?
Some lenders require a CPA letter confirming your business type, years in operation, and expense ratio. Others accept standard expense factors without additional documentation. A CPA letter can sometimes lower your expense factor.
What credit score do I need for a bank statement loan?
Most bank statement programs require a minimum 620 FICO score. Borrowers with 700+ scores qualify for the best rates and can access up to 90% LTV on primary residences.
Is 12 or 24 months of bank statements better?
24-month statements typically qualify for better rates and higher LTV. 12-month programs are available but may have rates 0.25–0.50% higher and require a larger down payment.
Can I combine bank statement income with W-2 or other income?
Yes. Some lenders allow you to combine bank statement income with W-2 income, 1099 income, rental income, or other documented sources to increase your qualifying amount.
How long do I need to be self-employed to qualify?
Most bank statement lenders require a minimum of 2 years of self-employment, verified by a business license, CPA letter, or tax transcript showing Schedule C or business entity filing.
Are large or irregular deposits excluded from the calculation?
Lenders may exclude one-time large deposits that are not consistent with your regular business income, such as loan proceeds, insurance payouts, or asset sales. Consistent deposits are what matters.
What property types can I buy with a bank statement loan?
Bank statement loans are available for primary residences, second homes, and investment properties. Eligible property types include single-family, condos, townhomes, and 2–4 unit properties.
What is the maximum loan amount for a bank statement loan?
Most programs go up to $3 million, with some lenders offering up to $5 million for well-qualified borrowers. Jumbo bank statement loans may require higher credit scores and larger reserves.
Can I get a bank statement loan for a second home?
Yes. Bank statement loans are available for second homes and vacation properties. LTV limits are typically 80–85% for second homes, with the same income documentation requirements.
What is the minimum down payment for a bank statement loan?
Down payments start at 10% for primary residences with strong credit profiles. Investment properties typically require 20–25% down. Second homes usually require 10–15% down.
Do bank statement loans have higher interest rates?
Yes, typically 0.50–1.50% higher than conventional rates due to the alternative documentation. As of 2025, expect rates between 7.00% and 9.00% depending on credit score, LTV, and loan amount.
Can I refinance an existing mortgage with a bank statement loan?
Yes. Bank statement loans support both rate-and-term and cash-out refinances. Cash-out refinances are available up to 75–80% LTV depending on the lender and property type.
What reserves are required for a bank statement loan?
Most lenders require 2–6 months of PITIA reserves in liquid assets after closing. Higher loan amounts and investment properties may require 6–12 months of reserves.
Are co-borrowers allowed on bank statement loans?
Yes. You can add a co-borrower who may use traditional income documentation (W-2, tax returns) while the primary borrower uses bank statements. This can strengthen the overall application.
What if my bank statements show NSF fees or overdrafts?
Frequent NSF fees or overdrafts can be a red flag for lenders and may result in a denial. Most lenders want to see consistent positive balances and no more than 2–3 NSF occurrences over the statement period.
How fast can a bank statement loan close?
Bank statement loans typically close in 21–30 days. The timeline depends on how quickly you provide statements and whether the lender needs additional documentation like a CPA letter or business license.