The Quick Read: A commission-only earner qualifies for a jumbo loan by documenting deposits instead of tax-return income. Through select wholesale programs, the lender reviews 12 or 24 consecutive months of personal or business statements, removes deposits that are not earned income, applies an expense ratio to business accounts, and divides the result by the months reviewed. The resulting monthly figure drives the debt-to-income test, subject to full underwriting.
- Personal-account deposits are not reduced by an expense ratio, and transfers from your own business into a personal account count at 100%.
- Business-account income uses a fixed ratio of 20%, 40% or 50%, or an accountant-provided ratio, and needs at least 25% ownership.
- Debt-to-income runs up to 50% on most files, with a 660 credit floor on the portfolio program through select wholesale programs.
- Leverage on a primary residence steps down as the loan grows, and everything above $4,000,000 is reviewed case by case.
- The file is built on clean deposits, so account habits in the months before applying matter as much as the income itself.
Commission earners are the classic case for this product. The checks are real, and the gross number you see on a 1099 is rarely the number that lands in your account. Here is how the process works from start to finish, where it breaks, and how to decide whether it is the right path.
Why Commission Income Looks Thin on a Tax Return
Conventional underwriting starts from net income after deductions. A commission earner who writes off mileage, marketing, licensing, a home office and a brokerage split can show a taxable figure far below what actually moved through the accounts. A bank statement program starts from deposits instead.
That does not make it a loose product. Across the wholesale network, the lender still verifies what it relies on, using records specific to the borrower. The difference is the starting point: cash that actually arrived, not the figure left after write-offs.
Who fits? Real estate agents, insurance producers, auto and medical-device sales reps, financial advisors on commission, and anyone whose pay is mostly variable and paid on a 1099 basis. If you also take a W-2 base salary, you fall into a mixed case covered below.
How Deposits Become Qualifying Income
The mechanics run in six steps. Most programs we place files with follow this order.
1. Choose the window. Twelve or 24 consecutive months of statements. The bank portfolio program uses 12. Statements must be consecutive, and transaction histories never substitute.
2. Choose the account type. Personal, business, or both. Business statements need at least 25% ownership.
3. Screen the deposits. Transfers between your own accounts, loan proceeds, refunds, gifts and one-time credits come out. The CFPB’s compliance guide says a creditor relying on inflows must confirm they are the consumer’s personal income, which is why unexplained deposits get stripped.
4. Apply the expense ratio. On business accounts the lender applies a fixed expense ratio that scales with the size and type of the business, with the lowest ratio for a service business with no employees and the highest for larger businesses or any product business. An accountant-provided ratio can replace the fixed one. A profit-and-loss method exists too, with a cap on how much of the figure can be used.
5. Divide by the months. Eligible deposits after the ratio, divided by the statement months, gives monthly qualifying income.
6. Run the rest of the file. Credit, debt-to-income, reserves and the property are all underwritten separately.
Scotsman Guide describes the same basic structure: 12 to 24 months of statements, a standard expense factor, and a profit-and-loss alternative from a tax professional. It uses 50% as an example. That is an illustration, not a rule, and the ratio that applies to a given file comes from the program sheet.
A Worked Example in Ratios
Say a commission earner runs a 24-month review on business statements and the program applies a 40% ratio because the business has a small team. After screening out transfers and refunds, the remaining deposits are reduced by 40% and averaged across 24 months. If the same earner instead routes commissions into a personal account, the screened deposits are averaged with no ratio. That is why account structure can move qualifying income substantially, and why it deserves attention before you apply.
Which Deposits Count and Which Don’t
| Deposit type | Usually counts? | Why |
|---|---|---|
| Commission paid by brokerage or carrier | Yes | Earned income, traceable |
| Transfer from your own business to personal | Yes, at 100% | Already reduced at the business level |
| Transfer between your own accounts | No | Not new money |
| Refunds and reimbursements | No | Not earned income |
| Loan proceeds and gifts | No | Not income |
| Client or escrow-type funds | Usually no | Not yours to keep |
Commission paid net of a brokerage split shows up at the net figure. That is fine, because the net is what you actually earned. Problems arise when reported income and deposits do not match.
W-2 Payroll Commission Versus 1099 Commission
If your commission arrives through payroll, a bank statement file can still work, but the payroll deposits need to be counted once, not twice. Mixed borrowers, for example a base salary plus commission, often get the cleanest result by running the whole deposit stream through a personal account and letting the lender screen it.
A 1099 earner has more flexibility. The file can run on personal statements, business statements or an accountant-prepared ratio. The tradeoff is that more flexibility means more room to choose the wrong path, which is why comparing both windows and both account types before submission pays off.
Personal or Business Statements?
If you deposit commissions into a personal account, the lender generally counts screened deposits without an expense ratio. If you operate through a business account, the ratio applies, but you may be able to substitute an accountant’s figure that is lower than the fixed one.
Commingled accounts are the common stumbling block. A single clean account for commission income makes the review simpler and the income easier to defend.
Business-account income is also prorated to your ownership share. A 25% owner does not get credit for 100% of the deposits.
Handling Uneven Commission
Commission rarely arrives in even slices. Closings bunch up in a few months, a slow year follows a strong one, and income can rise or fall across the window.
- Fast growth. A 12-month window highlights recent gains, so it may favor a borrower whose income has jumped.
- Seasonality or one dip. A 24-month window smooths swings and may help if a recent quarter was weak.
- Weak early period. A soft first year can drag a 24-month average down, so run both and compare.
- Declining income. Statements do not fix a downward trend. The underwriter looks at direction, not just the average.
The strongest files usually show that dips have an explanation, such as a market slowdown or a lumpy closing schedule, and that recent months are not falling off a cliff.
What Changes at Jumbo Size
Larger balances tighten everything. Through select wholesale programs, a portfolio non-QM bank statement program carries files from $300,000 to $6,000,000. A bank portfolio program carries twelve-month-statement files to $30,000,000 on its own ladder, and that ladder begins above $4,000,000 and overlaps the first program to $6,000,000.
On a primary residence, leverage steps down with size, subject to underwriting:
- 90% on a purchase up to $1,000,000.
- 85% up to $2,000,000.
- 80% up to $3,000,000.
- 75% at the top credit tier up to $4,000,000.
- Above $4,000,000, every file is reviewed case by case before submission. The bank program’s ladder shows 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000, all on review.
Second homes and investment property generally run about five points lower at every size. Credit minimums rise with the balance too: 660 on the portfolio program, 680 on the bank program, and 700 above the super-jumbo line. Reserves are typically 3 months up to $500,000, 6 months up to $1,500,000 and 9 months above, with more required for each additional financed property.
Above $3,500,000 on a primary residence, and $3,000,000 on a second home or investment property, added overlays apply: a 700 credit floor, a clean housing history, and 48-month seasoning on any credit event. Cash-out proceeds cannot satisfy reserves at that size.
Practitioner view: on high-balance commission files, the deposit math rarely sinks the deal. Reserves and leverage do. A borrower who earns enough to qualify but holds most of their wealth in a business or in illiquid assets can hit the reserve wall first, so counting liquid assets early prevents surprises.
Documents and a Prep Timeline
Expect to provide consecutive statements for the chosen window, plus proof of the commission arrangement, such as 1099s, commission agreements or a brokerage payout history. Business borrowers may need evidence of ownership and a tax professional’s expense statement if they want a custom ratio.
If you can plan ahead, start three to twelve months out:
1. Route all commission into one account.
2. Stop moving large sums between accounts without a clear paper trail.
3. Avoid overdrafts and keep a steady balance.
4. Pay down revolving debt that inflates the debt-to-income ratio.
5. Gather your last two years of 1099s so reported and deposited income can be reconciled.
Red Flags and Fixes
Unexplained large deposits, overdrafts, gaps in statements and heavy transfers are what cause files to stall. Most are fixable. Document the source of any large deposit with a letter or record, close or consolidate stray accounts, and let a few clean months accumulate before applying if the history is messy.
One regulatory point belongs here. A bank statement loan is not a stated-income product. The CFPB’s earlier compliance guide is explicit that income must be verified from reliable records, which is why the process is document-heavy.
Is This the Right Route? Comparing the Paths
| Path | Qualifies | Best fit |
|---|---|---|
| Bank statements | The person, on deposits | Commission earners with heavy write-offs |
| Full documentation | The person, on traditional personal-income documentation | Earners whose returns show strong net income |
| Asset-based | Liquid assets | Wealthy borrowers with thin deposits |
| DSCR | The property, on rent | Investment property purchases |
Bank statements win when your deposits are strong and your traditional personal-income documentation is not. Full documentation can be the lower-friction choice if your returns already show enough income. If your liquid assets are large, the asset allowance divides them by 36, 60 or 84 months, and the assets-only path needs liquidity equal to the loan plus closing costs. Those asset paths are for primary and second homes.
If the purchase is an investment property, DSCR is worth comparing. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, and never reads your personal income. Our complete DSCR loans guide walks through that structure. Some programs in the network also review coverage below 1.00, though leverage and terms adjust when they do.
If your real estate holdings extend beyond one purchase, Lendmire’s piece How Real Estate Developers Qualify for a Jumbo Mortgage With Bank Statements covers a related income structure.
Tax treatment varies; consult a qualified professional before relying on any deduction.
Key Terms Defined
Commission-only earner: A borrower whose pay comes mainly from sales commissions, usually reported on a 1099.
Bank statement loan: A mortgage that calculates income from deposits rather than tax-return net income.
Jumbo: A loan above the conforming limit set by the Federal Housing Finance Agency.
Expense ratio: The percentage of business deposits treated as costs before income is counted.
Qualifying income: The monthly figure the lender uses after screening deposits, applying the ratio and averaging.
Debt-to-income: Monthly obligations divided by qualifying income, up to 50% on most files through select wholesale programs.
Frequently Asked Questions
Can I qualify if all my income is commission?
Yes, through programs built for self-employed and 1099 borrowers. The lender averages screened deposits over 12 or 24 months. A track record of consistent deposits matters more than the job title.
Should I use 12 or 24 months of statements?
It depends on your trend. A fast-growing earner may do better on 12 months, while someone with seasonal swings may be better served by 24. Most brokers run both before choosing.
Does a business account help or hurt?
It depends on structure. Business deposits take an expense ratio of 20%, 40% or 50%, while personal-account deposits generally do not. An accountant-provided ratio can sometimes beat the fixed figure.
What is the minimum credit score?
Through select wholesale programs the floor is typically 660 on the portfolio program and 680 on the bank program, rising to 700 above the super-jumbo line. Larger and lower-risk leverage tiers ask for higher scores.
Is this a no-documentation loan?
No. It is reviewed on documented income under the applicable program, subject to lender guidelines. The file needs consecutive statements, deposit screening and full credit and property review.
Next Steps
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. Lendmire is a broker arranging financing through select lenders in its wholesale network, and consumer mortgage lending is licensed in 16 states. Programs change, and every file is underwritten individually.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.
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References
1. CFPB ATR/QM Small Entity Compliance Guide (v3.0)
2. Scotsman Guide, “Rev Up the Engine for Non-QM Lending”
3. CFPB ATR/QM Compliance Guide (2013 edition)
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 Refinance a Private Bank Jumbo Mortgage With Bank Statements · How Consultants Qualify for a Jumbo Mortgage With Bank Statements · How Real Estate Developers Qualify for a Jumbo Mortgage With Bank Statements
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.