Current bank statement loan guidelines, updated from one source.
These cards pull from one place: Lendmire’s centralized alternative-documentation standards source, which refreshes automatically as program guidance changes. What a specific file qualifies for still comes down to the borrower, the property, and the selected wholesale lender.
Max LTV on a primary
Bank-statement financing reaches 90% loan-to-value on a primary-residence purchase — as little as 10% down without a single tax return in the file.
Months of statements
A conventional file wants tax returns, W-2s, and pay stubs; here, twelve months of personal or business bank statements do that job instead.
Maximum loan amount
The program spans $125,000 to $3.5 million in loan amount, covering everything from a starter home to a high-value primary residence.
Ways to document income
Choose the evidence that matches how you get paid: bank statements, 1099s, a CPA-prepared profit and loss, asset depletion, or one-year documentation.
Standard-program figures for owner-occupied financing · rendered from the centralized guideline source, subject to change without notice · second homes and investment property carry their own leverage tiers.
With Novi’s median owner-occupied value at $399,100 (ACS 2019–2023), the program’s top loan-to-value tier covers the typical purchase with room to spare — ten percent down at the median comes to roughly $39,910, and the financed amount sits comfortably inside the program’s range.
What a bank statement loan is — and why the tax return is the problem.
In Novi, a well-advised business often shows a modest return precisely because the accounting is good. A conventional lender must qualify on that after-deduction net income. This program works from the deposits instead.
Deposits replace the tax return
The starting point is twelve months of deposits into your personal or business accounts, not the adjusted gross income a return reports. What the business actually collected is the number that counts.
An expense factor stands in for write-offs
The expense factor mirrors your cost structure: 50% for most business types, 30% for small service firms, 20% for sole owner-operators. It applies to business-account deposits only — personal-account deposits skip the factor and simply divide by twelve.
Your CPA can beat the standard factor
A ratio built on your actual books can replace the standard tier: an independent CPA, enrolled agent, tax attorney, or licensed preparer documents it, with a floor of 10%. It is frequently the difference between qualifying tiers.
Underwriting still applies
This is not a no-documentation loan. Credit, reserves, appraisal, title, insurance, business existence, and account activity are all reviewed — the difference is which documents establish your income, not whether anything is verified.
Personal accounts use total eligible deposits divided by twelve. Business accounts apply the expense factor for your industry first, or a ratio prepared by your own CPA. The calculator below runs the math for the bank statement, 1099, and asset-depletion paths; the lender determines the final figure from the actual statements.
The self-employed economy this page serves.
Roughly 2,221 of Novi’s 33,906 employed civilians work for themselves — 6.6% of the workforce, split between 1,135 incorporated owners and 1,086 sole proprietors (ACS 2019–2023).
Citywide figures provide general market context, not an underwriting decision. Your qualifying income comes from your own statements, and the loan amount depends on credit, reserves, the property, and the documentation path selected.
Data source: U.S. Census Bureau ACS 5-Year (2023), class-of-worker series, Novi city.
How Novi borrowers prove income — without a tax return.
The bank statement loans that self-employed borrowers close in Novi, Michigan start with a path decision: how your business banks, how you are paid, and what your accountant can prepare. Five documentation types on the snapshot, six ways the math runs below — bank statements three ways (personal, business, and a CPA-provided ratio), 1099s, a CPA profit and loss, and asset depletion. Most files fit one of these; some combine them.
Count the split and Novi reads incorporated — 1,135 entity owners, 1,086 sole proprietors (ACS 2019–2023) — so the ordering starts with business statements: entity accounts, ownership documentation, and the expense factors made for them.
Business bank statements
Business deposits net of an industry expense factor: 50% as the standard, 30% for small service firms with no more than five employees, and 20% for sole owner-operators carrying no employees, cost of goods, or leased office space. At least 25% ownership is required.
Personal bank statements
The math is the simplest of the six methods: total eligible deposits across twelve months of personal statements, divided by twelve, with no expense factor. It requires at least 20% ownership of the business behind the deposits, and it often fits owners who pay themselves into a personal account best.
CPA-provided expense ratio
An independent CPA, enrolled agent, tax attorney, or CTEC preparer can provide an expense ratio specific to your business, floored at 10%. Certain industries — real-estate investing, construction, food service, retail — take no less than the standard factor.
1099 only
Qualify on 90% of gross 1099 earnings across one or two years. Earnings must be 100% commission, from one company or several; borrowers carrying office, equipment, or vehicle costs are usually better served by bank statements.
CPA profit & loss
With a 680 minimum score, a 12- or 24-month profit and loss prepared by your accountant qualifies a primary residence on its own — no bank statements in the file. The standard path is owner-occupied, and other occupancies require an exception.
Asset depletion
Income here is manufactured from the balance sheet: qualified liquid assets divided across 60 months, with cash at full value, securities at 80%, and retirement accounts at 70%. Employment is not required, and the path carries no separate reserve requirement.
These are the most common routes into the same program. For a Novi file, Lendmire’s review compares them across wholesale lenders and picks the route that produces the strongest qualifying income.
How the program reads this market.
Three composite scenarios drawn from the business types that anchor Novi’s self-employed economy — each mapped to the documentation path that fits it.
Equipment write-offs, healthy top line
The depreciation schedule does its job too well: the Novi fabricator’s return is accurate and unusable for conventional qualifying at once. Statements bring the hidden top line back into the file.
The path: twelve months of business statements
Independent practice, prior employment counts
A practitioner in Novi who left a system job to open a practice pairs the new entity’s deposits with prior same-line employment to satisfy the history standard — the classic first-mortgage file for a young practice.
Path fit: business statements with same-line history
Clean books, lean overhead
A Novi consultant with a handful of clients and near-zero overhead looks modest on a return and strong on statements: the deposits show what the practice collects, and low-overhead service work frequently reaches a stronger expense tier than the standard factor.
The path: service-tier business statements
The four transactions this program exists to solve.
Far from a niche workaround, bank statement loans serve Novi’s self-employed borrowers as the standard path across every common transaction type.
Buy a primary residence
An owner-occupied purchase reaches 90% loan-to-value: 10% down at minimum, no tax returns in the file. By a wide margin, this is the program’s most common use.
Rate-and-term refinance
Swap out existing financing without conventional income documentation. This fits borrowers who bought before going self-employed, or whose last two returns no longer reflect the business.
Cash-out refinance
Convert home equity into business or personal capital. Cash in hand is unlimited at or below 70% loan-to-value, with a $1,000,000 cap above that threshold.
Second homes and investment property
Second homes and investment properties run the same documentation paths at their own leverage tiers, so self-employed borrowers are not confined to a primary residence.
What do your deposits qualify as? Find out before applying.
Start with the documentation path, then give it the figure it works from. Current expense factors, the 1099 factor, and the asset-depletion divisor run exactly as the program runs them, pulled from Lendmire’s centralized guideline source. Every output stays an estimate until a lender reviews the actual statements.
Novi qualifying income calculator
Starting assumptions reflect an example Novi small business. Replace them with your own figures.
A 50% expense factor applies to business bank statements unless your business qualifies for a lower tier or your CPA documents a ratio specific to your industry.
The opening scenario shows an example Novi small business: $708,000 in twelve-month deposits, a $59,000 monthly average, 100% ownership, standard business-statement path. All factors, reserve requirements, and leverage ceilings reflect current program guidance and update from Lendmire’s centralized guideline source on the live page.
Illustrative estimate only; not a credit decision, pre-approval, or commitment to lend. Housing-budget figures represent the total monthly obligation the stated debt-to-income ratio would allow before other debts, taxes, and insurance are considered. Actual qualifying income, program eligibility, and loan amount depend on the statements themselves and on full underwriting by the selected wholesale lender.
Same borrower, two entirely different qualifying numbers.
It was never about how much you earn; it is about which number the lender is allowed to use.
Net profit or gross deposits.
Qualifies on the net income reported after business deductions, typically averaged across two years of returns. Depreciation, vehicle expenses, home-office deductions, and equipment write-offs all reduce the figure the lender may use.
The qualifying figure is deposits net of a standardized expense factor. For a profitable Novi business with aggressive but legitimate write-offs, that path frequently produces materially higher qualifying income than the tax return would.
Pricing on alternative documentation sits above comparable conventional financing; the different documentation standard is why. The premium only makes sense when your returns understate the business, which is exactly the situation this program was built for.
If your last two returns reflect the business accurately and comfortably support the payment, conventional financing is usually the better economics. If deductions have compressed your reportable income, this program exists precisely for that gap — and Lendmire arranges both.
What to prepare for a bank statement file.
Lender and path set the exact list, but a self-employed borrower in Novi can start preparing from these six categories.
Treat this as a general preparation guide rather than a universal checklist: the selected lender may request additional information based on the business, borrower, property, and underwriting findings.
The details that move your qualifying income.
Account structure, deposit activity, business history, and property characteristics all affect what a bank statement file will support. Resolve these before relying on a target loan amount.
Use these checks to keep the file clean and financeable.
Wholesale lenders treat the details differently, so no universal outcome is promised here, just the main issues self-employed borrowers in Novi should clear first.
- Separate the accounts. Deposits that mix business and personal funds complicate the calculation and can reduce qualifying income.
- Watch the account activity. More than ten insufficient-funds items in twelve months disqualifies the file under the current program.
- Document the business. The standard is two years of business existence, and a shorter history needs prior same-line employment.
Which Accounts, Ownership, and Partners
Deposits follow ownership: 25% minimum for business accounts, 20% for personal. A shared business generally prorates qualifying income to your stake, backed by a partner letter permitting your use of the funds, and every statement set must run consecutive, complete, and dated within 45 days of application.
Large Deposits and Transfers
A deposit larger than half your monthly average will draw a letter of explanation plus evidence that it is business revenue. Transfers between your own accounts, loan proceeds, and one-time windfalls are generally excluded from the income calculation rather than counted twice.
Business History and Ownership Changes
Two years of business existence is standard. Less than two years can work with two years of prior employment in the same line of work; less than one year does not qualify. An ownership change within the past twelve months generally needs seasoning before the deposits can be relied upon.
Listing History and Time on Title
Eligibility ends where an active listing begins: listed at application is out, and listed within six months of the note date is generally out too. A cash-out refinance needs at least one borrower holding title for six months, waived when the property arrived by inheritance, gift, court award, or divorce.
Prepayment Terms Under the Program
Current program guidance keeps Michigan penalty-free on prepayment for every occupancy: the structures used elsewhere are not written here, a real consideration for investors planning early exits or quick post-improvement refinances.
Twelve months of statements, then closing.
Most self-employed borrowers find the path shorter than expected, because the hardest part, assembling returns, schedules, and K-1s, is removed entirely.
Run the scenario
Open with the basics: property, business type, twelve-month deposit total, credit range, timeline. Prequalification is a conversation, not a document request.
Pick the path
The documentation paths get compared across multiple wholesale lenders, and the one producing the strongest qualifying income for your file wins.
Submit the statements
From there, twelve consecutive months of statements, business evidence, and standard property documentation head to the selected lender for underwriting.
Close
Appraisal, title, and coverage requirements wrap up alongside underwriting; from there the file moves to a standard Michigan closing.
How bank statement lenders compare in Novi.
No interchangeable parts here: expense factors, ownership thresholds, deposit treatment, and reserve requirements all vary across wholesale programs, and the lender a Novi file lands with materially changes its qualifying income.
The lender you land with is the product
Send the same borrower down a different documentation path or to a different lender and the qualifying amount materially changes. Choosing correctly is the work.
Self-employed specialization
Three questions drive the review: how does the business bank, what can the accountant support, and which expense factor does the industry actually qualify for?
An honest comparison
Conventional financing is on Lendmire’s shelf too — so whether a bank statement loan is actually the right call gets answered straight, not pitched.
Trusted by buyers & business owners alike.
Novi FAQs: bank statement lending
The qualification, documentation, and eligibility questions Novi, Michigan borrowers raise most often about bank statement loans are answered here. Final program terms remain scenario-specific.
What is a bank statement loan in Novi?
A bank statement loan in Novi is a mortgage documented with twelve months of bank deposits instead of tax returns, wage forms, or pay stubs. Select lenders in Lendmire’s wholesale network run these programs across primary residences, second homes, and investment properties; owner-occupied purchases reach the top loan-to-value tier, and other occupancies carry their own.
Will overdrafts or insufficient-funds items disqualify me?
Not automatically, and the two are counted differently. An overdraft covered by linked funds, or one leaving no negative end-of-day balance, is generally not counted as an insufficient-funds item. True NSF items are capped across the twelve-month period — if your history is near that threshold, banking cleaner months before applying is often the difference.
How is my qualifying income calculated from bank statements?
Personal accounts use total eligible deposits divided by twelve, with no expense factor. Business accounts apply the expense factor for your business type first — or a ratio your own CPA documents — then divide by twelve. The calculator on this page runs the bank statement, 1099, and asset-depletion paths with your figures.
Do I need two years of business history?
Two years of business existence is the standard. Under two years can work with two years of prior employment in the same line; under one year does not qualify. An ownership change within the past twelve months generally needs seasoning before the deposits can be relied upon.
Can I get a mortgage without tax returns if I’m self-employed in Novi?
Yes, and it is the program’s whole reason for being. The lender works from your deposits rather than post-deduction net income: personal statements divided by twelve, or business statements reduced by the expense factor for your industry.
My business has partners — whose statements do we use?
The business’ — filtered through your stake. Qualifying income generally prorates to your ownership percentage, partners sign a letter permitting use of the accounts, and the other owners’ shares never touch your calculation.
I run an S-corp and pay myself a salary plus distributions — which statements do I use?
Start with the business statements: deposits net of your business type’s expense factor, ownership documented at the required threshold. If the salary lands in your personal account, though, the personal-statement path can make the cleaner file — so the review prices both.
Do these loans carry prepayment terms in Michigan?
No. Michigan sits among the states where the current program offers no prepayment structures, so quotes here price without one. Because guidance updates from a single source, confirm the current treatment at application.
I’m an independent practitioner who left a hospital system last year — do I qualify?
The two-year business standard can be met with prior employment in the same line of work, which is common for practitioners going independent. The review pairs your practice’s deposits with the employment history that preceded them.
How much do I need to put down in Novi?
As little as ten percent on a primary-residence purchase at the program’s top loan-to-value tier — which comfortably covers Novi’s typical price range. Higher leverage pairs with stronger credit; second homes and investment properties carry their own maximums.
Your deposits tell the real story. Let’s use them.
Start with your business type, twelve-month deposit total, and the Novi property you have in mind. Prequalification runs on a soft credit inquiry that doesn’t affect your score — and if conventional financing serves you better, we’ll tell you that too.
This page is Novi-specific — for rules, guidelines, and scenarios statewide, visit Bank Statement Loans in Michigan within Lendmire’s bank statement loan program.
Nearby markets in Michigan: Farmington Hills · Livonia · Southfield · Westland · Dearborn Heights · Pontiac · Royal Oak · Dearborn
Other loan programs in Novi: DSCR Loans in Novi, MI · Super Jumbo DSCR Loans in Novi, MI · Short-Term Rental Loans in Novi, MI · Investment Property Cash-Out Refinance in Novi, MI · Hard Money Loans in Novi, MI · Super Jumbo Bank Statement Loans in Novi, MI · Bank Statement HELOC in Novi, MI · Investment Property HELOC in Novi, MI