Bank Statement Loans

Non-QM lenders often replace that with bank deposits and an expense factor instead of a tax return.

Understanding both sides of the math — the traditional method and the DSCR alternative — is how you pick the right path for your next deal.

These are non-QM loans, which means the underwriting path is different from a conventional mortgage, not less regulated.

– Underwriters don’t count raw deposits as income.

Every legitimate deduction your CPA recommended lowers your tax bill and lowers your qualifying income at the same time.

A bank statement loan exists for one reason: self-employed income doesn’t always show up on a tax return the way it shows up in a checking account.

Choosing a 24-month statement period changes how your income gets calculated — it does not change how many months of reserves you need.

The 24-month lookback itself doesn’t move the score requirement; it changes how income gets averaged, not how credit gets weighed.

Down Payment For A 24-Month Bank Statement Loan — There’s no federal minimum down payment for a bank statement loan.

Owner-occupied files run through consumer mortgage channels. Investment-property files run through business-purpose channels with different leverage caps.

It’s a non-QM product built for self-employed borrowers, 1099 contractors, and business owners whose tax returns understate real cash flow.

The pace comes down to document completeness, how the income calculation resolves, and whether an appraisal has to be scheduled.