The Quick Read: It depends on your qualifying income, because no author-specific cap exists: the lender averages your eligible deposits over 12 or 24 months, applies an expense ratio where required, and measures the result against a debt-to-income limit and the program’s size and leverage rules. Through select wholesale programs, subject to full underwriting, loan sizes run from $300,000 to $30,000,000.
- Royalties, advances and platform payouts can count when you can trace them to a payer.
- Business statements take an expense ratio, and a lower ratio means more qualifying income.
- Debt-to-income can run up to 50% on most files, so your existing debts shrink the loan.
- Maximum leverage falls as the loan grows, and every file above $4,000,000 is reviewed case by case.
- Your tax return is generally not the income source, but proof you can repay still is.
Writers are a good fit for this loan. Royalties arrive in uneven chunks from several payers, and deductions often push taxable income well below what actually lands in your account. A bank statement loan reads the account instead of the return.
What Actually Sets an Author’s Loan Size?
Four things set it: the monthly income the underwriter builds from your deposits, the debt-to-income limit, the program’s leverage ladder, and the loan-size band the property falls in. Income is the starting point. The other three decide how much of it turns into loan.
Here is the chain, in order:
1. The lender totals your eligible deposits over the review window.
2. It divides by the number of months to get a monthly figure.
3. It applies an expense ratio if you used business statements.
4. It runs the result through a debt-to-income test against the new housing payment plus your other debts.
5. It checks credit, reserves, appraised value and the program’s leverage cap.
Whichever step binds first sets your ceiling. A high-earning author with heavy student debt may hit the debt-to-income limit first. An author with clean finances and a thin deposit history may be limited by the review window.
Through the wholesale network Lendmire works with, two programs cover this space. A portfolio non-QM bank-statement program carries files from $300,000 up to $6,000,000. A bank portfolio jumbo program carries twelve-month-statement files up to $30,000,000 on its own size ladder. The bank program’s ladder begins above $4,000,000 and overlaps the first program to $6,000,000, then stands alone above that. Both are available through select wholesale programs, subject to full underwriting, and neither is a commitment to lend.
One clarification for readers who searched for a business loan: this article covers a mortgage on a home or rental property, not a loan against your book revenue.
Key Terms Defined
Bank statement loan: a mortgage that is reviewed around deposits in your bank statements instead of traditional personal-income documentation.
Non-QM: a mortgage that falls outside the standard rules for conventional loans, which lets lenders use alternative income documents.
Expense ratio: the share of business deposits the lender treats as operating costs rather than income.
Eligible deposits: recurring money you can tie to a payer, such as a publisher, platform, agent or licensing client.
Debt-to-income (DTI): your total monthly debts, including the new housing payment, divided by your qualifying monthly income.
Reserves: liquid savings you hold after closing, counted in months of the housing payment.
Do Royalties, Advances and Platform Payouts Count?
Yes, when the underwriter can trace the deposit to a payer and see it repeat. Recurring royalties from a publisher, platform or agent are the cleanest. One-time windfalls get discounted or excluded.
| Income type | Usually treated as | What an underwriter may ask |
|---|---|---|
| Publisher royalties | Eligible, recurring | Royalty statements |
| Self-publishing platform payouts | Eligible, recurring | Platform payout history |
| Agent-routed payments | Eligible if traceable | Agent statements |
| Advances | Often partial or excluded | Contract, payment schedule |
| Speaking and licensing fees | Eligible if repeating | Invoices, agreements |
| Transfers from your own accounts | Excluded unless from your business | Account ownership records |
Refunds, loan proceeds and gifts do not count. Neither do deposits that move between your own personal accounts. The exception is a transfer from your own business into your personal account, which through select wholesale programs is typically counted at 100%, subject to full underwriting and to the underwriter confirming the business is yours.
How Deposits Become Borrowing Power
Your usable income is eligible deposits divided by the statement months, minus any expense ratio. Small changes in that ratio move the loan size a lot, which is why the first decision is which statements to submit.
Business statements need at least 25% ownership of the business, such as an LLC or S-corp that receives your royalties. The expense ratio can be fixed or accountant-provided. Fixed ratios are typically set by business type and staffing, with the lowest ratio applied to a service business with no employees and higher ratios applied as headcount grows or when the business sells products; your loan program’s guidelines set the exact tiers. A profit-and-loss method is capped at 80% of the figure it produces.
Run the swing on identical deposits. At a 50% expense ratio you keep half your deposits as income. At 20% you keep four-fifths. That is 60% more qualifying income from the same bank account, and it flows straight through the debt-to-income test.
An accountant-provided ratio often beats the fixed default for a solo author with few costs. Authors who pay for editors, cover design, ads or an assistant may find the opposite, so ask your accountant for the real number before choosing a path.
Once you have monthly income, the debt-to-income limit does the sizing. At a 50% cap, half of qualifying monthly income is the ceiling for housing plus every other monthly debt. Each car loan or student loan payment takes room from the mortgage, dollar for dollar.
Personal or Business Statements for Authors?
Run both. The better choice depends on where your royalties land and how much the lender discounts each set.
| Factor | Personal statements | Business statements |
|---|---|---|
| Where royalties land | Your personal account | LLC or S-corp account |
| Expense ratio | Varies by program | Required |
| Ownership test | None | 25% minimum |
| Best for | Sole earners, few costs | Authors with an entity and staff |
| Window | 12 or 24 months | 12 or 24 months |
Personal statements often produce a cleaner number for authors paid directly. Business statements make sense when royalties flow through an entity, though the expense ratio can eat into income. Many programs count personal-account deposits without an expense reduction, but that varies, so confirm it before you pick a path.
Statements must be consecutive. A transaction history exported from an app does not substitute for statements.
What Else Limits How Much You Can Borrow
Credit, leverage, reserves and the property decide the rest. Income can qualify you for a large loan, yet the leverage ladder can still hold the amount down.
Through select wholesale programs, subject to full underwriting, these are typical ceilings:
- Credit: a 660 floor on the portfolio non-QM program, 680 on the bank portfolio program, and 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.
- Debt-to-income: up to 50%.
- Reserves: 3 months up to a $500,000 loan, 6 months to $1,500,000, and 9 months above that. First-time investors typically need 12 months.
- Leverage on a primary-residence purchase: 90% up to $1,000,000, 85% to $2,000,000, 80% to $3,000,000, and 75% to $4,000,000 at the top credit tier.
- Leverage above $4,000,000: reviewed case by case, with the bank program’s ladder at 65% to $5,000,000, 60% to $10,000,000 and 55% to $30,000,000 on a primary residence.
- Second homes and investment property: about five points lower at each size. On an investment-property purchase, 85% is the ceiling up to $1,000,000.
- Cash-out on a primary residence: up to 80% at the smallest sizes, and on the portfolio program, proceeds above 60% LTV are capped at $1,500,000.
Credit and leverage move together. The higher loan bands ask for 720 or 760 credit to reach their best leverage, and a score near the floor lowers the cap.
The higher bands also add overlays: a 700 credit floor, a clean 24-month housing history, 48 months of seasoning after any credit event, no rural property and U.S. citizen or permanent resident status. Cash-out proceeds cannot satisfy reserves on those files.
Every figure above $4,000,000 is on review. Treat it as a starting conversation, not a promise.
Handling Lumpy and Irregular Income
Underwriters smooth lumpy income rather than ignoring it. A launch-month spike inside a 12-month window can inflate your average, and a lender may discount it. Both a 12-month and a 24-month window are available, so you can choose the one that tells the better true story.
Picture an author with one breakout year followed by a quieter one. Over 12 months of the quiet period, qualifying income is lower and steady. Over 24 months, the breakout inflates the average but the lender may question whether it repeats. Neither window is automatically better.
Advances are the trickiest. A single large payment from a publisher may be treated as a one-time item. If the advance sits in savings, it can work through the asset paths instead.
Across the wholesale network Lendmire works with, the strongest author files share a pattern: deposits that repeat month after month, a clear paper trail from each payer, and statements free of unexplained transfers. Underwriters want to tie each large deposit to a payer or a contract. Files with a lump near the end of the window and nothing before it get a harder look.
Many programs also ask for roughly two years of self-employment. The exact test depends on the program, so a newer author should confirm the history requirement before spending time on documents.
Bank Statement Loan, Asset Paths or DSCR?
If your income story is weak but your savings or property are strong, a different qualification path may produce a larger loan. These paths differ in what they measure.
| Option | What it measures | Good fit for |
|---|---|---|
| Bank statement loan | Deposits after expenses | Steady royalty or platform income |
| Asset allowance | Liquid assets spread over 36, 60 or 84 months | Large savings, lighter income |
| Assets-only | Liquid assets versus the loan | Very asset-rich borrowers |
| DSCR loan | Rent covering the property payment | Rental properties |
Asset allowance divides liquid assets by 36 months when debt-to-income is at or below 60%, 60 months above that, and 84 months for standalone use or any loan above $3,500,000. It applies to primary and second homes only, with an 80% maximum. Retirement accounts count at 70%, or 80% at age 59½ and older. Business funds, gifts, cryptocurrency and unvested stock never count.
Assets-only needs no debt-to-income test. It does need U.S. liquid assets equal to the loan amount plus closing costs, plus sixty months of any net loss on other residential property.
For an author who buys a rental, a DSCR loan can sidestep the royalty question. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal income and debt-to-income ratio are not the constraint. Lendmire’s complete DSCR loans guide explains how the coverage ratio works. Some select lenders in the network do review coverage below 1.00, but loan-to-value limits and terms adjust when they do.
Pick the tool by your strongest story. If personal income is strong, use the bank statement path. If the property’s rent is strong, use DSCR.
Mistakes, Risks and Who Should Think Twice
A common mistake is borrowing against a peak year. A hit book can lift your deposits for twelve months, and the mortgage lasts decades. If royalties decline after a bestseller, the payment does not.
Other common errors:
- Assuming every deposit counts, when transfers, refunds and gifts do not.
- Assuming business statements always produce more income, when the expense ratio can cut the number below your personal figure.
- Mixing household and royalty deposits so a payer cannot be identified.
- Applying with less than the history a program expects.
- Assuming maximum income means maximum loan, when credit, reserves and leverage cap the amount.
A bank statement loan swaps tax-return documentation for bank records. It does not swap proof of repayment ability. The CFPB’s compliance guide on ability to repay lists eight factors a lender must consider, including income or assets, debts and credit history. Lexology’s summary of supervisory findings adds that non-QM lenders must verify what they rely on with third-party records, which is why bank statements work and a stated income does not.
How you report royalties can also shape how a lender reads your file. Tax treatment varies and royalties generally go on Schedule E, though a self-employed writer reports them on Schedule C per IRS Publication 525, so consult a qualified tax professional.
Consider a conventional loan first if your traditional personal-income documentation already shows strong income. Bank statement programs typically ask for more cash down and more reserves, and the underwriting is individual. Lendmire’s piece How Much You Can Borrow For A Bank Statement Loan? covers the general case.
Frequently Asked Questions
Do royalties count as income on a bank statement loan?
Yes, when the deposits recur and you can trace them to a payer. Underwriters look for a publisher, platform or agent behind each large deposit. One-time payments and transfers between your own accounts are generally excluded.
Do I need two years as an author to qualify?
Many programs ask for roughly two years of self-employment, though the test varies by program. Some accept shorter or related history. A newer author should confirm the requirement before gathering statements.
Can I use a spouse’s income alongside my royalties?
Often yes, because a co-borrower’s income can be added to the debt-to-income test. Each borrower is documented under the method that fits their income, and the combined file is underwritten individually. A spouse with traditional employment income can strengthen a thinner royalty history.
Should I use my personal or business account?
Whichever produces the better qualifying income. Royalties paid straight to you suit personal statements. Royalties paid to an LLC or S-corp suit business statements, which need at least 25% ownership and carry an expense ratio. Running both is the safest way to decide.
What if my income dropped after a hit book?
The underwriter sees the whole window. A 24-month window that includes the peak can raise the average, while a 12-month window of the lower period reflects today’s income. Asset-based paths may help if you saved the earlier proceeds.
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’s 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. Program details 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
A non-QM mortgage broker (NMLS# 2371349), Lendmire arranges DSCR financing for real estate investors in 41 markets — 40 states plus Washington, D.C. Because deals are underwritten primarily on property cash flow rather than personal income documentation, the structure suits self-employed buyers and entity-owned portfolios. Lendmire places loans through wholesale investor lenders; it is not a direct lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. CFPB ATR/QM Small Entity Compliance Guide
2. Lexology: CFPB supervisory findings summary
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 Much Can Executives Paid in Stock Borrow With a Bank Statement Loan? · How Much Can Entrepreneurs Borrow With a Bank Statement Loan? · How to Qualify for a Bank Statement Loan for Authors
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.