The Quick Read: A private equity professional qualifies by showing twelve or twenty-four consecutive months of statements, where eligible deposits (cut by an expense ratio on business accounts) support the payment at a debt-to-income ratio up to 50%, alongside credit, reserves and a down payment, subject to lender guidelines. Partners with an ownership stake in the management entity fit best. Salaried associates usually fit poorly.
- Income: Eligible deposits divided by the statement months, after an expense ratio on business accounts, through select wholesale programs.
- Credit: A 660 floor on the portfolio non-QM program and 680 on the bank portfolio program, rising to 700 on the largest loans.
- Leverage: Up to 90% on a primary-residence purchase at the smallest loan sizes, stepping down as the loan grows.
- Reserves: Three, six or nine months depending on loan size, with more for additional financed properties.
- Weak spot: Carry that is allocated but never wired to your account does not show up in deposits.
Everything below is how the file gets built, what gets stripped out, and where the rule breaks. Program figures reflect select wholesale-network guidelines, are subject to full underwriting, and are not a commitment to lend.
Who a Bank Statement Loan Fits in Private Equity
A bank statement loan fits the PE professional whose income arrives as distributions rather than a paycheck. That usually means a partner, principal or founder with an ownership stake in the GP or management company. A salaried associate or VP paid base and bonus through payroll usually belongs in a conventional jumbo file, because a pay stub documents that income better than any statement.
The programs are built for self-employed borrowers. A PE professional is often a hybrid: some W-2 pay, some K-1 allocations, some management-fee share, some carry. Underwriters sort that mix into what is paid in cash and traceable versus what is allocated on paper.
Business accounts need at least 25% ownership in the entity. Ownership below 100% means income is prorated to your share. A principal who owns 40% of the management company counts 40% of the eligible deposits, not all of them.
Lendmire is a broker. It arranges these loans by comparing wholesale programs for a given deposit pattern, and the lender decides on eligibility.
What Counts as Income and What Gets Stripped Out
The table shows how common PE cash flows are typically read across the wholesale network.
| Cash flow | Typical treatment | What to document |
|---|---|---|
| Salary or bonus wired from payroll | Counts, but fits a W-2 file better | Pay stubs, offer letter |
| Management fee share | Counts when it lands as a deposit | Entity statements, K-1 |
| Carry distribution, wired in | Counts, but read as lumpy | Distribution notice, fund statement |
| Carry allocated, not paid | Does not count | Nothing to document |
| Capital call or co-invest wire | Stripped out or questioned | Fund notices |
| Transfer between your own accounts | Removed | Account ownership proof |
| Loan proceeds, refunds, one-off windfalls | Removed | Source letter |
One rule helps PE borrowers. Transfers from the borrower’s own business into a personal account count at 100%. If you pay yourself from the management entity into a personal account, the personal statements can carry the file without a business expense ratio. The business-account route applies the ratio instead. Which one produces more income depends on your pay pattern and your accountant’s numbers.
Statements must be consecutive and complete. A transaction history export never substitutes for them.
Step by Step: How Deposits Become Qualifying Income
The underwriting math is mechanical. Here is the sequence.
1. Pick the account type. Business, personal, or a combination. This choice drives the rest of the math, so decide it before collecting anything.
2. Pull every statement for the window. Twelve or twenty-four consecutive months for each account used. The bank portfolio program uses twelve.
3. Scrub the deposits. Remove own-account transfers, loan proceeds, refunds, capital-call returns and one-time windfalls. Document large deposits that stay in.
4. Apply ownership. On business accounts, multiply by your ownership share.
5. Apply the expense ratio. The program sets it, and you do not pick it. Fixed ratios vary with the size and type of the business, with a lower ratio for a service business with no employees and higher ratios for businesses with more employees or any product business. An accountant-provided ratio can replace the fixed one with support. A profit-and-loss method is also an option.
6. Divide by the statement months. The result is qualifying monthly income.
7. Run DTI. The proposed housing payment plus personal debts, divided by qualifying income, must come in at or under 50%.
8. Check credit, reserves and the property alongside. Income alone never carries the file.
This is alternative documentation, not none. The loan is reviewed on documented income under the applicable program, subject to lender guidelines. The federal framework agrees. A non-QM lender still verifies whatever income it relies on.
A Worked Example (Indexed, Illustrative)
Picture a partner who owns the full management entity. The numbers below are modeled, not market data, and they are indexed so no dollar figure appears.
Over twenty-four months, the entity’s operating account averages 100 units of deposits a month. After stripping capital-call returns and transfers from other accounts, the average falls to 90.
The entity has six employees, so the fixed expense ratio is 50%. Qualifying income is 45 units a month.
At a 50% DTI cap, total monthly obligations must stay at or under about 22 units. That covers the new housing payment and every personal debt.
Now say the accountant documents a 40% expense ratio. Qualifying income rises to 54 units, and the obligation ceiling rises to 27. The same account produces a materially larger file once the support is in hand.
Now run it the other way. The partner pays herself from the entity into a personal account, and those transfers count at 100%. If she pays herself 60 units a month, that is 60 units of qualifying income, with no ratio applied. In this example the personal route wins. In other files it does not. Run both before choosing.
Handling Lumpy and Carry-Driven Income
Carry is the hard part. A fund can allocate profit to you on paper for years before any cash is distributed. A deposit-based method counts only the cash that arrived.
Lumpy distributions raise a second issue. One large carry wire in month fourteen of a twenty-four-month window can look like a one-time windfall to an underwriter, or it can lift the average materially. The outcome depends on whether the file shows a pattern and a source. A distribution notice and fund statement that tie the wire to recurring fund activity help the file.
Three habits keep these files clean:
- Keep fund-level flows out of the accounts you plan to submit where you can.
- Separate co-invest wires and capital calls from operating money.
- Pick the window that fits your payout rhythm. Twenty-four months smooths a lumpy year, while twelve months suits a clean recent run.
Files built around unrealized carry are the wrong fit for this product. If most of your wealth is on paper, the asset-based paths below usually serve better.
Loan Size, Leverage and Credit
Loan sizes run from $300,000 to $30,000,000 through two wholesale programs. A portfolio non-QM program handles files up to $6,000,000. A bank portfolio program takes twelve-month-statement files up to $30,000,000 on its own ladder. That ladder begins above $4,000,000, overlaps the portfolio program to $6,000,000, and stands alone above it. Leverage depends on loan size and occupancy. The ceilings below are for a primary-residence purchase through select wholesale programs, subject to full underwriting.
| Loan size | Primary purchase LTV ceiling | Typical credit |
|---|---|---|
| To $1,000,000 | 90% | 680+ |
| $1,000,000 to $2,000,000 | 85% | 700 to 720+ |
| $2,000,000 to $3,000,000 | 80% | 720+ |
| $3,000,000 to $4,000,000 | 75% | 720+, 760+ above $3.5M |
| Above $4,000,000 | Case by case | Reviewed before submission |
Above $4,000,000, the bank portfolio program’s ladder is 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000 on a primary-residence purchase, and every one of those files is reviewed case by case before submission. Second homes and investment property run about five points lower at most sizes. A second home is limited to one unit.
Credit starts at a 660 floor on the portfolio program and 680 on the bank program. Both rise to 700 above the super-jumbo line, which sits at $3,500,000 on a primary residence and $3,000,000 on a second home or investment property. Above that line, the overlays also include a 0x30x24 housing history, 48 months of seasoning after any credit event, and U.S. citizen or permanent resident status. Non-occupant co-borrowers and rural property are out.
Reserves, Cash-Out and Interest-Only
Reserves scale with the loan. Typical requirements are three months up to $500,000, six months up to $1,500,000, and nine months above. Add two months for each additional financed property, to a 12-month maximum. First-time investors carry 12 months. Above the super-jumbo line, cash-out proceeds cannot satisfy reserves.
Cash-out is unlimited at or below 60% LTV. Above 60%, the portfolio program caps cash in hand at $1,500,000. The bank program publishes no cap. Cash-out on a primary residence tops out at 80% only in the smallest loan band and steps down with size. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
Interest-only is a structure, not a leverage boost. The portfolio program offers it on purchase and rate-term files up to 85% LTV with a 700 credit floor, on a 40-year term with a 10-year interest-only period. The bank program offers interest-only at 60% or the size band’s ceiling, whichever is lower. For a PE borrower with uneven income, interest-only can ease the monthly obligation measured against DTI. Whether it fits depends on the program and the file. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
When Statements Are the Wrong Tool: Other Documentation Paths
Two other paths often suit PE borrowers better than statements, and both sit within the same wholesale network. The table compares them.
| Path | How income or capacity is shown | Fits best when |
|---|---|---|
| Bank statements | Eligible deposits after expense ratio | Cash distributions land regularly |
| Profit-and-loss only | Entity P&L supports income | Entity books are clean, deposits are messy |
| Asset allowance | Liquid assets divided by 36, 60 or 84 months | Large liquid balances, uneven income |
| Assets only | Liquid assets cover loan plus costs, no DTI | Wealth is liquid, income is thin |
The asset allowance path divides liquid assets by 36 months when DTI is at or below 60%, by 60 months when DTI is above 60%, and by 84 months on a standalone basis or on any loan above $3,500,000. It applies to primary and second homes only, at 80% maximum LTV.
Assets-only needs no DTI. It requires U.S. liquid assets equal to the loan amount plus closing costs plus sixty months of any net loss on other residential property. Retirement accounts count at 70%, or 80% at age 59½ and older. Business funds, gifts, unvested stock and cryptocurrency never count. Trusts count only if they are a revocable living trust.
For a partner holding a large liquid balance after a fund exit, assets-only can fit better than a deposit method. It is a genuine toss-up between that and statements for someone with both steady distributions and big balances. The deciding factor is usually how much of the balance is truly liquid and in your name.
Where the General Rule Breaks
Several edge cases change the answer.
- Commingled accounts. One account mixing personal spending, fund flows and entity income draws heavy scrutiny. Underwriters cannot separate income from noise, and the file defaults to the strictest reading.
- Unsupported expense claims. A lower ratio needs an accountant letter or P&L. Without it, the file falls back to the fixed ratio.
- Entity title. Bank statement loans test the individual. Closing in an entity is often unavailable on these files, depending on the program.
- Recent role or fund changes. A move to a new firm or a restructured management company resets the income story. Twelve clean months at the new setup may beat twenty-four months of mixed history.
- Condos and special property types. Warrantable condos go to 85% LTV and non-warrantable to 80%. Condotels run 75% on purchase and 65% on cash-out, and 50% on the bank program.
- Texas home-equity loans. A 50(a)(6) loan takes a five-point LTV reduction and stops at $3,000,000 on the portfolio program.
Bank Statements or DSCR for the Rental Side?
Occupancy usually decides it. A home you live in points toward bank statements. A pure rental points toward DSCR.
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. A DSCR file qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal income and your DTI are not the test.
That matters as the portfolio grows. On a statement file, every financed property adds to personal DTI. On a DSCR file, each property is measured by its own rent against its own payment. A PE professional who buys a primary residence on statements and then adds rentals often moves the rentals to DSCR. The complete DSCR loans guide covers that side in full.
Tax treatment varies; consult a qualified professional before relying on any deduction or income characterization.
Key Terms Defined
Eligible deposit: A deposit that survives scrubbing and counts toward income.
Expense ratio: The share of business deposits treated as operating cost and removed before income is calculated.
Carried interest (carry): A share of fund profits paid to the manager, which may be allocated on paper before any cash is distributed.
K-1: The annual partnership tax form that reports your allocated share of fund or entity income.
DTI: Monthly obligations divided by qualifying monthly income.
Non-QM: A mortgage that falls outside standard agency rules and is underwritten to the individual program’s guidelines.
Frequently Asked Questions
Does carry count as income on a bank statement loan?
Carry counts only when it is paid out as a traceable deposit. Allocated but unpaid carry does not appear in the account, so it adds nothing to qualifying income. Wired distributions with a fund notice behind them can count, though underwriters often read them as lumpy and may rely on a twenty-four-month average.
Can I use my fund’s or management company’s account?
You can use a business account if you own at least 25% of the entity. Qualifying income is prorated to your ownership share and reduced by an expense ratio. Fund-level accounts that hold capital-call and investor flows are a poor choice, because those deposits are stripped out or questioned.
Do I need two years in my current role?
Not always. The statement window is twelve or twenty-four months, and the bank portfolio program uses twelve. A recent move or restructure does not rule you out, but it limits which window gives a clean story. Review the file with a broker before choosing.
What credit score and reserves do I need?
Typical floors are 660 on the portfolio non-QM program and 680 on the bank portfolio program, rising to 700 above the super-jumbo line. Reserves run three months up to $500,000, six months up to $1,500,000, and nine months above, with more for additional financed properties. All of it is subject to full underwriting.
Is a bank statement loan the same as no documentation?
No. It substitutes statements for traditional personal-income documentation, and the lender still verifies income or assets from reliable records. Underwriters review credit, reserves and the property alongside it. Federal ability-to-repay requirements call for a reasonable, good-faith determination of repayment before a covered consumer loan is made.
Next Steps
Lendmire’s consumer mortgage lending is licensed in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA and WA. Lendmire also publishes a full guide for private equity professionals on bank statement loans.
Most PE files turn on one question: how much of your compensation reaches your account as traceable cash, in a pattern an underwriter can read.
Get Started
Ready to find the right loan for you?
In about 30 seconds you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage focused on investor financing, arranging DSCR loans in 40 states plus Washington, D.C. — 41 markets total. Qualification is based on the property’s income rather than personal income documentation, subject to lender guidelines, making it a fit for LLC-held rentals and scaling portfolios. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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: Private Bank Mortgage vs Super Jumbo Bank Statement Loan for an AUM Client · How a La Jolla Bank Statement Jumbo Loan Works · How to Qualify for a Bank Statement Loan for a Gated Community Home
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.