The Quick Read: A CPA letter lets your accountant certify the share of your business deposits that goes to expenses. The lender can then swap its default expense assumption for your real percentage. That raises the income counted from your statements when your true costs run below the default. The letter is usually optional, and it matters only on business-account files.
- The letter changes one input: the expense ratio applied to eligible business deposits.
- It does nothing on a DSCR loan, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
- It can lower your income if your CPA certifies costs above the lender’s default.
- It cannot fix a debt-to-income ratio that sits far above the ceiling.
- Start the CPA conversation early, because some preparers decline to certify percentages.
Key Terms Defined
Bank statement loan: a mortgage that qualifies a self-employed borrower on deposits in 12 or 24 months of bank statements instead of tax-return income.
Expense ratio (expense factor): the share of business deposits the lender treats as operating costs before profit reaches you.
CPA letter (expense-ratio letter): a signed statement from a licensed preparer certifying your business’s expense percentage for the statement period.
Jumbo loan: a mortgage above the conforming loan limit. A super jumbo is a larger balance that faces tighter overlays.
Debt-to-income ratio (DTI): your total monthly debts divided by your qualifying monthly income.
P&L path: a program that is reviewed around a profit-and-loss statement instead of a flat expense ratio.
What Does a CPA Letter Actually Do?
It replaces one number. On a business-account bank statement file, the lender totals eligible deposits, divides by the number of statement months, and subtracts an expense ratio. The letter supports a different expense ratio than the lender would otherwise assign.
The arithmetic is short: monthly qualifying income equals eligible deposits divided by months, multiplied by one minus the expense ratio. Deposits stay the same. Only the last term moves.
Across the wholesale network Lendmire places files with, the fixed ratios vary by business profile and employee count, with lower ratios generally applied to service businesses with no employees and higher ratios applied to businesses with more employees or any product business. The alternative is an accountant-provided ratio, which is your letter. These are guidelines through select wholesale programs, and every file is underwritten individually.
Look at what that means for a product business. A 50% fixed ratio keeps half your deposits as income. A certified 20% keeps 80%. That is 60% more qualifying income from identical statements.
Do You Need One? A Decision Table
You need one only when the product and account type make it useful. Many files qualify on the lender’s fixed ratio with no letter at all.
| Your situation | Does a CPA letter help? |
|---|---|
| Business statements, costs below the fixed ratio | Yes, often materially |
| Business statements, costs near the fixed ratio | Usually neutral |
| Personal statements | Usually unnecessary |
| Transfers from your business to a personal account | Usually unnecessary |
| P&L-only program | Different tool |
| DSCR loan | No role |
Personal-account files read deposits near their raw average, so no flat ratio applies. Transfers from your own business into a personal account count in full on most programs. A lender may still ask for a letter if the picture is unclear.
Worked Example: Same Deposits, With and Without the Letter
Run the numbers on a founder with a product business, using modeled assumptions rather than market data. Say the file sits on a primary residence purchase, and the lender’s fixed ratio for her business is 50%. Her DTI computes to about 60% on that income. That is over the 50% ceiling that programs typically apply, so the file fails.
Now her CPA certifies a 20% expense ratio after reviewing the books. Qualifying income rises 60%. Her DTI falls to roughly 38%, which clears the ceiling.
The letter did not change her deposits. It changed which percentage the lender trusted.
Now flip it. Say her DTI is far higher, near 90% on default income. The same 60% income lift leaves her around 56%, still over the ceiling. A letter does not rescue a file that is structurally too leveraged. At that point the levers are a smaller loan, a larger down payment, paying down debts, or a different product.
When the Letter Helps, Stays Neutral, or Backfires
The letter helps when real costs run lower than the default. It backfires when they run higher. Lenders may use whichever figure the CPA supports, so a letter certifying costs above the fixed ratio can reduce your income.
| Outcome | When it happens |
|---|---|
| Helps | Low-overhead consultants, professional practices, owners with few employees |
| Neutral | Costs close to the fixed ratio |
| Hurts | Restaurants, contractors, heavy-payroll or inventory businesses |
Business type drives credibility. A solo consultant is believable at a low percentage. A contractor with materials, subcontractors and payroll is not, and a CPA may refuse to certify it.
Why Jumbo Files Treat It Differently
Size raises the stakes. A larger loan carries a larger monthly obligation, so the income number does more work, and a small percentage shift decides pass or fail. Underwriters also look harder at everything else.
Through select wholesale programs, subject to full underwriting, primary residence purchase leverage steps down with size. It runs up to 90% to $1,000,000, 85% to $2,000,000, and 80% to $3,000,000. The ladder reaches 75% at the top credit tier to $4,000,000. Above $4,000,000, every file is reviewed case by case before submission, so no flat ceiling applies there. Second homes and investment property typically run about five points lower at each size.
Credit and reserves tighten too. The portfolio non-QM program typically sets a 660 credit floor, and the floor rises to 700 above the super-jumbo line. That line sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Reserves typically run 3 months to $500,000, 6 months to $1,500,000, and 9 months above that. A stronger income number does not change any of these.
Business statements generally require at least 25% ownership. If you own only part of the company, the lender applies your ownership percentage to the deposits.
Two programs sit behind these files. A portfolio non-QM bank-statement program carries loans to $6,000,000. A separate bank portfolio program uses twelve months of statements and carries loans to $30,000,000 on its own ladder. Its ladder begins above $4,000,000 and runs 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000, all on review. Which program fits depends on size, property, and how the letter will be treated.
What the Letter Must Contain
Underwriters check a short list of elements. Missing any one is a common reason for a re-do.
- The CPA’s or preparer’s name, license type, and contact information.
- The business name and your ownership role.
- The exact period covered, matching your bank statement months.
- The certified expense percentage, stated as a single number.
- Confirmation that the preparer has reviewed the business’s financials or prepared its returns.
- Often, how long the business has operated.
- A signature and a date.
The common mistakes are easy to avoid. A letter covering the wrong period gets sent back. A letter signed by you instead of a licensed preparer carries no weight. A percentage that conflicts with your returns or P&L invites questions.
The letter also sits inside a verification framework. A lender relying on income must check it against reasonably reliable third-party records, as the CFPB’s ability-to-repay compliance guide explains. Law-firm commentary on the rule adds that verification records must be specific to the borrower, not geographic or employer averages. That is why a letter from a preparer who has seen your actual books counts and a generic template does not.
Who Can Sign, and What Your CPA Needs First
A CPA, an enrolled agent, or a similar licensed preparer can typically sign. The lender decides who qualifies.
Your preparer needs access to the real records before certifying anything. That means current books or a P&L, filed returns, and bank statements for the same window. A preparer who does not keep your books, or who has never seen them, will often decline. Some decline regardless, because certifying a percentage creates professional exposure.
Ask early. If your CPA says no, you still have options: the lender’s fixed ratio, a P&L-based program where it is offered, or a switch to personal statements.
How to Get It, Step by Step
1. Ask the broker for the lender’s exact wording. Different programs want different language, and some set a floor below which they will not go.
2. Choose your statement window. Programs use 12 or 24 months, and the bank program uses 12. Statements must be consecutive.
3. Clean up the accounts. Separate personal spending from business accounts, and keep a paper trail for large deposits.
4. Send your CPA the request. Include the lender’s wording and the statement dates.
5. Review the draft. Check the period, the percentage, the credentials, and the date against the list above.
6. Submit the letter with the file. It should be signed and dated before submission.
Start talking to your CPA a couple of months before you apply. A preparer working through year-end or filing season may have little room.
Here is a short script for the loan officer conversation:
I am self-employed on business statements. Does this program accept an accountant-provided expense ratio? What exact wording does it require, what period must it cover, and is there a floor on the percentage?
And a short script for the CPA:
I am applying for a mortgage on bank statements. Can you review my books and certify my business expense ratio for these exact months? Here is the lender’s required wording. If you cannot certify a percentage, please tell me now.
A CPA letter is not free to obtain. Weigh the fee against the income gain on your own file. On a large jumbo file with real overhead savings, the gain can be large. On a file already clearing DTI, it adds nothing.
CPA Letter vs. P&L vs. Tax Returns
These documents answer different questions. Programs treat them differently.
| Document | What it does | Typical role |
|---|---|---|
| CPA expense letter | Supports a custom expense ratio | Bank statement files |
| Profit-and-loss statement | Replaces the flat ratio entirely | P&L-based programs |
| Traditional personal-income documentation | Shows reported income after deductions | Standard documentation |
| Business license or verification | Confirms the business exists | Supporting file item |
A P&L program and a CPA expense letter are not the same tool. Do not assume one satisfies the other. Ask which the program uses.
What the Letter Cannot Do
It cannot promise approval. It does not replace your bank statements, because deposits are still checked and screened. Transfers, refunds, loan proceeds and one-off money come out of the total. It does not fix a DTI problem, credit issues, or thin reserves.
It is also not a stated-income loan. Your deposits are verified against actual statements. A lender relying on income generally verifies what it uses, and the NCUA’s supervisory letter on ability to repay lists current or expected income or assets among the first factors a lender weighs. No federal rule sets the expense percentage. That number is a lender and investor guideline choice.
The letter also does nothing on a DSCR loan. DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. They qualify primarily on property-level rental income covering the payment, subject to lender guidelines, so there is no personal income to support. If the property’s rent covers its payment, that route avoids the income question. Lendmire’s comparison of DSCR and bank statement loans for investors walks through that choice, and the complete DSCR loans guide covers the product in full.
Edge Cases Where the Rule Bends
- Partial owners. The lender applies your ownership percentage to deposits, and the 25% minimum ownership still has to be met. One letter should state your role clearly.
- Multiple entities. Franchise and multi-LLC owners need intercompany transfers separated from true revenue. One CPA letter may not cover every entity.
- Recent entity changes. A new entity or a restructure can create gaps in the statement history, which the CPA may need to explain.
- 1099 contractors and platform deposits. Payments from platforms and clients can look like clean deposits, but the lender still screens them, and the CPA should confirm which costs sit against them.
- Personal-account files. A lender may still ask for a letter or P&L to confirm the business exists, even though no flat ratio applies.
Why Letters Get Rejected
A rejection usually traces to one of a few causes:
- The letter covers the wrong period.
- The signer is not a licensed preparer.
- The percentage came from the borrower, not the CPA.
- The number conflicts with your returns or P&L.
- The letter is undated or missing credentials.
- The lender does not accept an accountant ratio on that program.
Pre-Application Checklist
- Confirm the program accepts an accountant-provided ratio, and ask for its wording.
- Pick a 12 or 24 month statement window.
- Separate business and personal funds.
- Document large deposits.
- Ask your CPA early whether they will certify a percentage.
- Check your DTI under both the fixed ratio and the certified one.
- Compare the product against DSCR if you are buying a rental.
Tax treatment can depend on how the funds are used and how the property is held. Investors should keep clear records and speak with a qualified tax professional before relying on any deduction.
For the drafting side, Lendmire also has a piece How to Write a CPA Letter for a Super Jumbo Bank Statement Loan.
Frequently Asked Questions
Is a CPA letter required for a bank statement jumbo loan?
No, it is usually optional. Many files qualify on the lender’s fixed expense ratio with no letter. It only helps when your real costs are lower than that fixed number.
Can the CPA letter set my expense ratio as low as I want?
No. The lender sets and limits the ratio, and the letter only supports a different figure. Programs typically have a floor, and the CPA must be able to back the percentage with real records.
Does a CPA letter work for a DSCR loan?
No. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so personal or business income is not the test.
Can a CPA letter make my qualifying income go down?
Yes. If your CPA certifies costs above the lender’s default, the lender may use that higher figure. Ask your CPA what the books show before you request a letter.
What if my CPA will not sign one?
You still have paths. You can use the lender’s fixed ratio, a P&L-based program where offered, or personal statements. Lendmire is a broker that shops multiple wholesale programs, and consumer mortgage lending is licensed in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA.
If you are financing a high-balance property on business or personal bank statements and want to see how the numbers work, Lendmire can help you compare super jumbo bank statement loan options based on your deposits, the property, credit profile, leverage, and your goals. Every figure here is a guideline through select wholesale programs, subject to full underwriting, and nothing is a commitment to lend.
Self-employed borrowers can compare both super jumbo programs on Lendmire’s self-employed mortgages page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage focused on DSCR investor financing, helping arrange programs through wholesale and investor-lending channels in 41 markets, including Washington, D.C. DSCR loans are evaluated by the lender on property cash flow rather than personal income, subject to lender guidelines, supporting LLC closings and accommodating investors with four or more financed properties. Scotsman Guide Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. CFS Review: CFPB Addresses Non-QMs Under Ability-to-Repay Rule
3. NCUA Supervisory Letter 14-01
This article is part of Lendmire’s super jumbo bank statement loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How To Use A Personal Account For A Super Jumbo Bank Statement Loan · Super Jumbo Bank Statement Cash-Out Documentation for a Loan-Out Company · How to Consolidate Debt With a Super Jumbo Bank Statement Cash-Out
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.