The Quick Read: You document it by assembling twelve or twenty-four consecutive months of complete bank statements, proving you own the practice, screening out every deposit that is not earned income, and letting the lender convert what remains into qualifying income through an expense ratio. The package is built around deposits, assets, or property cash flow instead of traditional personal-income documentation. Every file is still underwritten individually, and programs change.
- Choose the statement window and account type first: personal, business, or both. Business statements need at least 25% ownership of the practice.
- Statements must be complete and consecutive. Transaction histories and screenshots never substitute.
- Only earned, recurring deposits count. Loan proceeds, transfers between your own accounts, gifts, refunds and capital contributions come out.
- Above $4,000,000, every file is reviewed case by case before submission, so documentation quality matters even more.
- A pure rental purchase can often qualify on the property’s rent instead of the practice’s deposits.
Who This Is For (and Who It Isn’t)
This guide covers a mortgage on a home or investment property, documented with bank deposits. It is for physicians, dentists, attorneys, veterinarians and other practice owners whose traditional personal-income documentation shows less income than the practice actually produces.
It is not about financing the practice itself. It is also not about a physician loan or an SBA-style business loan, which use different document lists. If you want to buy a medical building or fund a practice acquisition, you are in a different product.
Lendmire is a mortgage broker. It shops this kind of file across multiple wholesale programs and does not lend. Everything below describes what Lendmire sees across those programs, through select wholesale programs and subject to full underwriting. None of it is a commitment to lend.
Why a Practice Owner’s Tax Return Looks Smaller Than the Practice
A practice owner’s return usually shows a low net because the practice spends heavily before profit is counted. Payroll, rent, equipment, supplies, insurance, billing systems and depreciation all reduce taxable income. Retirement contributions and pass-through structures shrink it further.
None of that means the cash is not there. The practice collects patient and insurance payments, and the owner takes money out by draw or distribution. A bank statement program reads that cash flow directly.
Tax treatment can depend on how the funds are used and how the property is held; borrowers should keep clear records and speak with a qualified tax professional before relying on any deduction.
Key Terms Defined
Super jumbo: A market label for a very large mortgage. It has no legal definition, and each program draws its own line. Across Lendmire’s network, the overlays tighten above $3,500,000 on a primary residence and above $3,000,000 on a second home or investment property.
Bank statement loan: A non-QM mortgage that is reviewed around documented deposits instead of traditional personal-income documentation. Non-QM means not a Qualified Mortgage. It does not mean low documentation.
Eligible deposits: The recurring, earned deposits left after the lender removes transfers, loan proceeds, gifts and refunds.
Expense ratio: The share of business deposits the lender treats as overhead. Qualifying income is eligible deposits divided by the statement months, after this ratio comes off.
Ownership proof: A business license, articles of incorporation, an operating agreement, or an accountant letter showing you own the practice and your percentage.
Reserves: Liquid assets you still hold after closing, counted in months of the new obligation.
Which Statements Should You Use?
Use whichever account type shows your income most accurately and is easiest to defend. Business statements show gross collections, so an expense ratio comes off. Personal statements show only what reached you, so the lender asks whether those deposits are real business income.
| Account type | How it is treated | Best fit | Main risk |
|---|---|---|---|
| Business | Deposits less expense ratio | Low overhead or accountant support | Ratio may cut income hard |
| Personal | Business transfers count at 100% | Steady draws or distributions | Harder source check |
| Commingled | Reviewed account by account | Short-term only | Mixed deposits get stripped |
Most programs in the network let you choose twelve or twenty-four months. Twelve months helps if your collections have grown recently. Twenty-four months helps if the last year had a dip. The bank portfolio program, which carries the largest files, uses twelve.
How the Expense Ratio Works
The expense ratio is a deduction, so a lower ratio means more qualifying income. Fixed ratios on business statements run 20% for a service business with no employees, 40% for one to five employees, and 50% for six or more employees or any product business. An accountant-provided ratio can replace the fixed one when the numbers support it.
Some programs use a profit-and-loss method instead, capped at 80%. Be careful with outside material here, because writers define expense factor in opposite directions. Ask which way a given program counts it.
The Step-by-Step Documentation Package
Build the package in this order. Each step removes a question the underwriter would otherwise ask.
1. Confirm your ownership and structure. A solo owner needs a license or incorporation papers. A partner or professional corporation member needs an operating agreement showing the ownership share. Business statements require at least 25%, and income is prorated by your share.
2. Pick the window and account. Choose twelve or twenty-four months, then personal, business, or both. Run the math both ways before choosing (see the worked example below).
3. Pull complete originals. Every page, every month, consecutive. If you switched banks mid-window, get both sets, with no gap.
4. Build a deposit log. List each deposit above a size you set, say what it is, and tag it as patient receipts, card processor batch, draw, or something else.
5. Source the unusual deposits. Large or one-off credits need a short explanation and a paper trail.
6. Separate non-income deposits. Flag equipment financing, credit-line draws, partner buy-in money, refunds and insurance clawbacks yourself. Underwriters find them anyway, and finding them first builds trust.
7. Get the accountant letter or P&L if it helps. An accountant letter can support a lower expense ratio. A profit-and-loss statement should be prepared or reviewed by a third-party accountant, not self-prepared.
8. Document assets. Down payment, closing costs and reserves each need their own statements, with large recent deposits sourced.
Start months before you apply. Cleaning up statements, getting the accountant letter and pulling originals takes longer than most owners expect.
Where Practice Money Shows Up: A Deposit Map
Underwriters sort practice deposits by what they are, not by where they landed. The treatments below are typical across the network and vary by program.
| Money movement | Typical treatment |
|---|---|
| Patient and insurance receipts | Counts, less expense ratio |
| Card processor batches | Counts when source is clear |
| Owner draw to personal account | Counts at 100% on personal path |
| Payroll funding from your own accounts | Excluded as an internal transfer |
| Equipment or credit-line proceeds | Excluded as loan proceeds |
| Partner buy-in or capital contribution | Excluded as non-earned |
| Refunds and insurance clawbacks | Excluded |
Transfers deserve a closer look because the rule has two sides. Money moving from your business into your personal account counts in full on the personal-statement path, because that is how you pay yourself. Money shuffled between your own personal accounts counts for nothing, and padding deposits that way does not help.
A Worked Example, in Ratios Instead of Dollars
Take a hypothetical owner and index the practice’s average monthly eligible business deposits at 100. This is a modeled illustration, not a program quote.
- Business path, fixed ratio. The practice has seven employees, so the 50% ratio applies. Qualifying income indexes at 50.
- Business path, accountant ratio. The accountant documents that real overhead runs 35%. If the program accepts it, qualifying income indexes at 65.
- Personal path. The owner draws steadily, and the draws landing in the personal account index at 55. They count at 100%, so qualifying income is 55.
Here the accountant-supported business path wins. In a practice with leaner overhead, the same math could favor a business ratio even more. In a practice that pays the owner unevenly, the personal path could be cleaner.
If you own part of the practice, ownership share applies on the business path. A 50% owner counts half of the result. Then the lender tests the income against the new obligation, your other debts and credit. Debt-to-income can run up to 50%, subject to program and credit profile.
What Changes at Super Jumbo Size
Size changes leverage, credit, reserves and review more than it changes the document list. Lendmire works with two wholesale bank statement programs here. The portfolio non-QM program carries files up to $6,000,000. The bank portfolio program carries twelve-month-statement files up to $30,000,000 on its own size ladder. Loan sizes range from $300,000 to $30,000,000 across the two.
On a primary-residence purchase, through select wholesale programs and subject to full underwriting, leverage typically tops out at 90% up to $1,000,000, 85% to $2,000,000, and 80% to $3,000,000. The top credit tier can reach 75% to $4,000,000. Those top cells need stronger scores than the program floors. The 90% cell, for example, needs a credit score of 680 or higher.
Above $4,000,000, the bank portfolio program takes over. On review and case by case, a primary-residence purchase sits at 65% to $5,000,000, 60% to $10,000,000, and 55% to $30,000,000. Leverage steps up or down by band and occupancy, so read the ladder for your own occupancy rather than subtracting from the primary figure. Remember the bands apply to the loan amount, not the purchase price.
The credit floors are 660 on the portfolio program up to the super-jumbo line and 700 above it. The bank program keeps its own 680 floor at every size.
Above $3,500,000 on a primary residence, and above $3,000,000 on a second home or investment property, extra overlays apply:
- a 700 credit floor and a 0x30x24 housing history;
- 48 months of seasoning after any credit event;
- U.S. citizens and permanent residents only, with no non-occupant co-borrowers;
- no rural property, and ten acres maximum;
- cash-out proceeds cannot satisfy reserves.
Reserves run 3 months up to $500,000 and 6 months to $1,500,000. They are 9 months above that, plus 2 months per additional financed property up to a 12-month maximum.
Commingled Accounts and Cleanup
If practice and personal money share one account, separate them before you apply. Open a clean operating account for the practice, route collections there, and pay yourself on a regular schedule into a personal account. Do this honestly and well ahead of the statement window. A fresh account cannot disguise old deposits, and the lender will review the full history.
Ownership structure also matters here. If your practice or the property sits in an entity, the way the loan is titled can change what accounts are acceptable. Lendmire’s piece on how vesting options work for a practice owner with an LLC walks through that question.
Why Lenders Still Verify Everything
Non-QM does not mean low standards. For consumer-purpose home loans, the federal ability-to-repay standard has the lender make a reasonable, good-faith determination that you can repay. It weighs factors such as income or assets, employment, debts and credit history, per the CFPB ATR/QM compliance guide. The lender generally cannot rely on what you tell it orally, and it looks to reasonably reliable third-party records, per the CFPB small-entity compliance guide.
Account statements fit that standard. So does a profit-and-loss statement prepared by a third-party tax professional, which Scotsman Guide describes as an alternative to a standard expense factor in non-QM bank statement lending. That is why the accountant letter and professional P&L carry weight, and a self-prepared one does not.
Mistakes That Stall Files
- Missing pages. Download complete statements, not summaries. Fix: pull originals and check page counts.
- Unexplained deposits. Fix: log and source anything unusual before the underwriter asks.
- Padding with transfers. They come out, and they damage credibility. Fix: leave them out.
- Ownership mismatch. The accounts show one name and the license shows another. Fix: provide the operating agreement or an access letter.
- Self-prepared P&L. It does not carry the weight of an accountant’s work. Fix: have a third-party accountant prepare or review it.
- Skipping reserves paperwork. Fix: document assets as carefully as income.
When a Rental Purchase Should Skip Statements
If you are buying a pure rental, you may not need to document the practice at all. 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 loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines, so the practice’s deposits largely drop out of the test. Lendmire’s complete DSCR loans guide explains how that test works.
Business purpose is not a free pass. Lenders review the stated purpose carefully, especially on cash-out files.
Practice owners with several properties often use both tools: statements for the home, DSCR for the rentals. A bank statement file on a rental pulls your personal debts into the test, while a DSCR file leaves them mostly out.
Other Paths When Statements Don’t Fit
Two asset-based paths exist. An asset allowance divides your liquid assets by 36, 60 or 84 months to create qualifying income. It applies to primary and second homes only, at 80% maximum leverage. Assets-only qualifies with no debt-to-income test when U.S. liquid assets equal 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 59.5 and up. Business funds, gifts, most trusts, unvested stock and cryptocurrency never count.
Pre-Submission Checklist
- Ownership proof and your percentage, in writing.
- Twelve or twenty-four complete, consecutive statements for each account used.
- A deposit log with sourcing for unusual items.
- Non-income deposits flagged and removed.
- Accountant letter or third-party-reviewed P&L, if you are using one.
- Asset statements for down payment, closing costs and reserves.
- Credit report reviewed, with a clean housing history.
- Property details, plus a plan for any condo or non-warrantable questions.
Frequently Asked Questions
Do I have to use business statements?
No. Many programs accept personal statements, where transfers from your own business count at 100%. The right choice depends on how your practice pays you and what your overhead really is. Run both calculations before you decide.
What if my accounts are commingled?
Expect the lender to review each account and strip out anything that is not clearly earned income. If possible, separate the money before the statement window begins. A cleaner window gives you cleaner income.
Does one large deposit hurt me?
Not if you can source it. A large deposit with a paper trail, such as a documented sale or distribution, is easy to explain. A large deposit with no explanation may be excluded and may raise questions about the rest of the file.
Can my accountant set the expense ratio?
An accountant-provided ratio can replace the fixed 20%, 40% or 50% ratios, subject to the program accepting it. The accountant’s letter needs to be supportable by your actual numbers. It cannot be a number picked to hit a target.
What if I just bought into the practice or I’m a new owner?
Programs run two clocks: how long you have been self-employed, and the months of statements you submit. A new partner often has a shorter history, and ownership proof matters more. Each program treats this differently, so a broker can show you which ones fit.
Next Steps
Reach the team at 828-256-2183 or request a quote.
For current guidelines and terms, see Lendmire’s super jumbo bank statement loan programs page.
Lendmire’s self-employed mortgages page presents both super jumbo programs, bank statement and DSCR, side by side.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps self-employed and high-net-worth borrowers in 16 states qualify on bank statements, a profit-and-loss statement, 1099s or liquid assets instead of traditional income documentation, through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Scotsman Guide: Rev Up the Engine for Non-QM Lending
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 Big Can an Interest-Only Super Jumbo Bank Statement Loan Be? · Is a Super Jumbo Bank Statement Loan Available in Texas? · How Much Can You Borrow With a 40-Year Super Jumbo Bank Statement Loan?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
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.