How Much Down Payment Does a Bank Statement Loan Require, and What Is the Maximum LTV?

The Quick Read: On a strong primary-residence purchase, the minimum down payment is about 10%, because select lenders in Lendmire’s wholesale network go up to 90% LTV there. That is the best case, not the standard: you put down more on weaker credit, larger loans, or non-primary properties, where the ceiling drops and the exact number comes from the lender’s program sheet. LTV means loan-to-value: the loan amount divided by the property’s value. Down payment is simply what is left over.

• Primary residence purchase or rate-term refinance: up to 90% LTV, so as little as 10% down. Stronger files earn the top of the range.
• Owner-occupied cash-out (primary or second home): up to 80% LTV, or 75% with an accountant-prepared expense ratio.
• Investment-property cash-out: tops out around 75% LTV. Investment purchase leverage varies by lender.
• Cash to close is more than the down payment. Closing costs and about 6 months of reserves sit on top.

What Down Payment Does a Bank Statement Loan Require?

No single number applies. No federal body sets a minimum down payment for these loans. Each investor in the lending chain publishes a matrix, and that matrix sets the maximum LTV for your exact scenario. Your down payment is 100% minus that maximum.

So a 90% LTV ceiling means 10% down. An 80% ceiling means 20% down. A 75% ceiling means 25% down. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.

Across our wholesale network, the pattern is steady. The best leverage goes to owner-occupied buyers with strong credit and moderate loan sizes. Everything else steps down from there. Many lenders also want more equity than conventional or government loans ask for, because they are taking on income documentation that falls outside the standard mold.

How Does a Bank Statement Loan Work?

A bank statement loan is reviewed on documented income under the applicable program, subject to lender guidelines. Instead of traditional personal-income documentation, you give the lender 12 months of business or personal bank statements. The lender averages your eligible deposits and, for business accounts, applies an expense factor. That factor varies by lender and business type, so never count on one formula.

Here is the sequence on a typical file:

1. You choose the statement path, personal or business.

2. The lender averages eligible deposits into a qualifying income figure.

3. That income is compared against your debts, including the new housing payment.

4. The lender looks up the maximum LTV on its matrix for your credit, loan size, occupancy, property type, and purpose.

5. The loan amount is set using the lower of the purchase price or the appraised value.

6. Underwriting checks where your down payment came from.

Step four matters most for this article. A maximum LTV is a ceiling, not an approval. Your file still has to clear income, credit, reserves, and appraisal.

How LTV Is Actually Measured

LTV equals the loan amount divided by the lower of the purchase price or the appraised value. If the appraisal comes in under the price, the lender uses the appraisal. You then cover the gap in cash or renegotiate.

That detail trips up many buyers. Say you agree to a price and the appraisal lands below it. Your loan amount shrinks at the same LTV, and your cash need grows. The same percentage on a bigger price also means more cash, which is why large-loan buyers feel the down payment more.

Down payment and LTV are mirror images. Raise one and the other falls by the same amount. The calculator on this page can convert percentages into dollars for your own price, as an illustrative estimate.

The Four Levers That Move Your Number

Four things set your ceiling: occupancy, transaction type, credit, and loan size. When two caps apply, the lower one governs. A borrower with excellent credit but a very large loan gets the large-loan cap, not the credit-tier cap.

Occupancy. A primary residence gets the highest leverage. Second homes and investment properties sit lower. Investment cash-out is usually the tightest of all.

Transaction type. A purchase or rate-term refinance on a primary residence can reach up to 90% LTV on select programs. An owner-occupied cash-out stops at 80% LTV. An investment-property cash-out stops around 75% LTV. If you read a lender’s headline LTV, check which transaction it describes. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.

Credit. Lower scores generally bring a lower maximum LTV. The top tier of leverage goes to the strongest credit profiles.

Loan size. Maximum LTV generally steps down as the loan grows. Programs in our network run from roughly $125,000 to $3,500,000, and the upper end carries tighter caps.

Property type adds its own wrinkles. Condos, especially non-warrantable ones, and 2-4 unit properties can carry separate caps. Some programs also lower the cash-out ceiling when you use an accountant-prepared expense ratio instead of a fixed factor.

The Scenario Grid

This table summarizes typical ceilings from select lenders in Lendmire’s network. Every file is underwritten individually, and exact limits depend on lender guidelines.

On a cash-out, there is no down payment. The last column shows the equity you must leave in the property. Asset depletion means qualifying from liquid assets instead of deposits.

What About Investment Properties?

Investment purchase leverage on bank statement documentation varies from lender to lender. It is generally lower than on owner-occupied loans, and the exact limits depend on the lender and the file. Investment cash-out is firmer: it tops out around 75% LTV.

Here is the bigger question for a rental buyer: should this file be bank statement at all? A bank statement loan tests your deposits. A DSCR loan, which is a business-purpose loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, tests the property instead. DSCR stands for debt service coverage ratio. Investor-focused leverage guidance lives on that side, and our complete DSCR loans guide walks through it.

The choice usually comes down to what is strong. A self-employed investor with large deposits but a modest rent figure often fits bank statement. A newer investor with strong rent coverage but thin deposits often fits DSCR better. Both can be the right tool.

Investors are a big slice of the market. Scotsman Guide reports that investors bought 29% to 32% of U.S. home sales in the first half of a recent year, and that more than 85% of investors own fewer than five properties. That helps explain why alt-doc products keep growing.

Which Disclosure Rules Apply? Occupancy Decides.

An owner-occupied bank statement file, meaning a primary residence or second home, is a consumer mortgage, and TRID disclosure rules apply. A bank statement loan on a non-owner-occupied rental, including a short-term rental, is business-purpose and exempt from TRID. Know which one your property falls under, because it shapes the paperwork you will see. Payment and rate figures never appear here.

Does Bank Statement Mean No Documentation?

No. Income is still verified. Only the form of proof changes. The CFPB’s ability-to-repay compliance guide says lenders generally cannot rely on what a borrower says about income, and it lists bank statements among the acceptable records. Non-QM does not mean anything goes.

A borrower-prepared profit-and-loss statement is a different path from bank statements or a third-party-prepared one. Many programs also want about two years of self-employment history, with exceptions for experienced borrowers. Treat that as a general description, not a rule.

Down Payment Is Not Cash to Close

Down payment is one of three separate cash needs. Mixing them up is the most common planning mistake we see.

Reserves are liquid funds, counted in months of your housing payment. On most files in our network, they run around 6 months. A higher LTV can bring a higher reserve requirement, so stretching to the ceiling costs you twice: less equity and a thicker cushion to hold.

Should You Put More Down Than the Minimum?

Often yes, though it is a real tradeoff. A larger down payment lowers your LTV, which generally makes approval more likely and can improve pricing.

Putting more down can also ease reserve requirements and, on some programs, remove mortgage insurance. At least one bank ties its lowest-down tier to mortgage insurance. But cash you hold back has value too. A rental investor who spends every dollar to chase a lower LTV may be left with no cushion when a vacancy or a repair hits.

The call is close. Maximum leverage preserves cash for the next deal. A larger down payment lowers risk and may improve terms. A good broker runs both versions of the file before you decide.

Where the Down Payment Can Come From

Underwriting verifies the source of your down payment. Large or unexplained deposits get questioned, so plan to document them. Seasoned funds in your own accounts are the cleanest. Whether gift funds, business-account funds, or sale proceeds count depends on the individual lender’s program sheet, so confirm before you rely on them.

Keep personal and business money separate where you can. Commingled accounts make the deposit story harder to tell.

Key Terms Defined

LTV (loan-to-value): The loan amount divided by the lower of the price or appraised value.

Down payment: The share of the price you pay in cash, equal to 100% minus the LTV.

Reserves: Liquid funds you must still hold after closing, counted in months of housing payment.

Expense factor: The percentage a lender subtracts from business-account deposits to estimate business costs.

Cash-out refinance: A refinance that takes out more than you owe and hands you the difference.

Asset depletion: A path that is reviewed against liquid assets rather than from deposits or traditional personal-income documentation.

How to Confirm Your Number Before You Apply

Gather 12 months of statements, a clear picture of your credit, your intended occupancy, and the loan size you expect. Then ask what the matrix says for that exact combination. A headline LTV in an advertisement is not your LTV.

Consumer bank statement programs are available through Lendmire in 16 states, and qualification is subject to lender guidelines. Call 828-256-2183 or request a quote.

About Lendmire

Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. Bank statement, P&L-only, 1099-only and asset-based mortgages are arranged through wholesale lending partners for borrowers whose tax returns understate their income, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. Scotsman Guide, “Investors anchor housing market as non-QM loans surge”

2. CFPB ATR/QM Small Entity Compliance Guide