In an LLC 12-Month Bank Statement Loan vs. 24-Month Bank Statement Loan

The Quick Read: For an LLC owner, the 12-month window usually fits rising or recently stronger deposits and a newer business, while the 24-month window fits steady or seasonal income and a longer track record, and the lender’s program decides which windows are on the table. The window changes the qualifying income number, not the basic method. Both windows work from deposits, and both use a lender expense factor on business accounts.

• Twelve months counts only the most recent year, so it favors income that is climbing.
• Twenty-four months averages two years, so it smooths out spikes and slumps but can pull a growing number down.
• A business account usually has an expense factor applied, which can cut qualifying income sharply.
• Whether a loan can close in an LLC’s name is a program-eligibility question. The window does not answer it.
• If the property is a rental you want to buy through the LLC, a loan that is reviewed on the property’s rent may fit better than one that is reviewed on your deposits.

Here is the honest answer on who each option suits. The 12-month path suits an owner whose business grew over the past year, or an LLC that is too young to show two years of statements. The 24-month path suits an owner whose deposits swing with the seasons, or whose strong year was an outlier.

A broker’s view helps here because the choice is rarely free. Across the wholesale network Lendmire places files with, many programs set the window by loan type, and a few let the borrower pick. So the first job is to find which windows a program allows. The second is to run the numbers on each.

Side-by-Side

The table below compares the two windows for an LLC owner. The 12-month column reflects the documentation Lendmire typically places through select lenders. The 24-month column shows published industry norms, which vary by program. Review details are subject to lender guidelines, and every file is underwritten individually.

How Both Windows Turn Deposits Into Income

Both windows follow the same steps. The lender collects consecutive statements with every page. The underwriter strips out transfers, loan proceeds, and one-time items. What remains is averaged over the window, then adjusted for business costs if the account belongs to the LLC.

That adjustment uses an expense factor, which is the share of deposits the lender treats as business operating costs rather than your income. Deposits are not your income, because the business has to pay its bills out of them. Many programs use a flat factor by default. A statement or expense ratio prepared by an accountant can support a lower factor on programs that allow it. You do not choose the factor. The lender sets it from the business type and the supporting documents.

Personal-account paths work differently. They often count all eligible deposits and skip the expense factor, but they require that the money really is your personal income. An LLC owner who pays themselves through distributions may qualify on either path, depending on how clean the accounts are.

If the LLC has more than one member, qualifying income is typically limited to your ownership share. That is a common mechanic, not a universal rule, so ask before you assume it.

When the 12-Month Window Is the Better Fit

The 12-month window wins when your most recent year is your best year. Averaging only that year lets the strong deposits carry the file. Two older, weaker years do not drag the number down.

Picture an owner whose LLC landed a few large contracts over the past year. A 24-month average would blend those into a quieter prior year. The 12-month result would count the stronger run on its own. The qualifying income can differ meaningfully between the two.

It also fits a younger business. An LLC with fewer than 24 months of statements may only be eligible for the shorter path. A lender also needs enough operating history to see that the deposits are real and repeatable. Twelve clean months from an LLC with a prior track record in the same trade tends to read better than twelve months from a brand-new venture.

The 12-month path has a lighter document burden as well. Twelve statements are easier to gather than twenty-four, especially if you changed banks along the way.

The risk is that one year can mislead. A single peak or trough defines the whole result. If those twelve months included a one-time windfall, the underwriter may discount it, and you may find the number lower than you expected.

On leverage, the strongest files on a primary-residence purchase or rate-term refinance can reach up to 90% LTV through select lenders. LTV, or loan-to-value, is the loan balance as a percentage of the property’s value. Where a file lands in that range depends on credit, reserves, loan size, and the lender. Loan amounts on these programs generally run from $125,000 to $3,500,000.

When the 24-Month Window Is the Better Fit

The 24-month window wins when your income moves around or when your recent year was an outlier. Averaging two years pulls down a spike and pulls up a slump. The result is a steadier number that tells a lender your income is reliable.

Consider an LLC whose deposits swing with the seasons. A 12-month window can capture one peak or one trough, depending on where the calendar falls. Two years give a fuller cycle. For landscapers, contractors, and anyone tied to a busy season, that smoothing is often the point.

It also helps when income has declined. If your newest year is weaker than the year before, a 12-month window shows the weaker reality. The 24-month average includes the stronger year and can produce a higher number. Do not read that as a safe harbor, though. Underwriters look at the trend, and declining deposits can raise questions no matter which window you pick. Many programs include rules for falling income and for overdrawn-account activity.

The 24-month path has costs. It needs more paperwork. It needs an account history long enough to cover it. And on a growing business, it can understate what you earn today. Some lenders also offer it only on certain loan types, so do not assume it will be available on every program.

This article focuses on what changes when the borrower is an LLC.

What an LLC Changes

An LLC adds four wrinkles that a sole proprietor does not face: which accounts to use, how ownership is counted, how mixed accounts are treated, and how entity age affects the window.

Personal or business statements. Business statements show the LLC’s revenue, so the expense factor applies. Personal statements show what reached you. Lenders may accept either, and some programs favor one. If both are in play, the underwriter will want to see which one actually holds your income. Choose the path that matches how the money flows, not the one that looks better on paper.

Ownership share. In a multi-member LLC, qualifying income is typically limited to your percentage. A partner’s share of deposits does not count toward you. Single-member LLCs avoid that issue.

Commingled accounts. Many lenders will not accept a single account that mixes personal and business activity. Others will. Clean separation is better practice regardless. It lets the underwriter see the business as a business, and it keeps personal spending from muddying the deposit review.

LLC age versus your history. A fourteen-month-old LLC run by someone who spent years in the same field as a sole proprietor is a common profile. The LLC may only support the 12-month path. Your prior history may help the file as a compensating factor, depending on the lender. Whether that history can be counted is a program question, so bring the documents early.

Deposits that do not count. Both windows exclude certain deposits. Examples include transfers between your own accounts, owner contributions, loan proceeds, and refunds. Removing them can shift the two windows differently, especially if one period contained a large transfer.

Does the Window Decide Whether You Can Close in the LLC?

No. Titling a property in an LLC is a program-eligibility issue. It does not depend on whether you document with twelve or twenty-four months. Bank statement programs are built mainly to qualify a person’s income, so some allow LLC borrowers and others do not. In many programs the individual still signs personally, even when an entity is involved. Entity vesting is subject to program terms, so confirm it before you pick a window, not after.

Occupancy matters just as much, and it decides the whole disclosure path. An owner-occupied file, meaning a primary residence or second home, is a consumer mortgage, and TRID applies. TRID is the federal set of loan-estimate and closing-disclosure rules for consumer mortgages. A bank statement loan on a non-owner-occupied rental, including a short-term rental, is business-purpose and exempt from TRID. Know which applies to your property before you compare programs, because the two paths do not mix.

On the federal side, the CFPB’s ability-to-repay rule requires a creditor to verify the income or assets it relies on using reliable third-party records. It does not set a 12-month or 24-month lookback. The text of 12 CFR 1026.43 at Cornell’s Legal Information Institute lists the repayment-ability factors a creditor must consider. The window is a lender or investor program choice, not a legal requirement. That is why guidelines differ so much from one program to the next.

Leverage and Property Type, Briefly

Leverage depends more on occupancy than on the window. On an owner-occupied cash-out refinance of a primary residence or second home, programs typically reach up to 80% LTV with a fixed expense ratio, or 75% with an accountant-prepared ratio, depending on loan size and credit. Do not confuse that with the higher purchase ceiling. On an investment-property cash-out, leverage tops out around 75% LTV. Investment purchases on bank statement documentation vary by lender, so treat any figure you see as program-specific.

Reserves commonly run around six months of the housing payment. Stronger files with more cash behind them often earn better terms. An asset-depletion option, which is reviewed against liquid assets rather than deposits, can reach up to about 80% LTV on a primary residence. It is worth asking about if your deposits are uneven but your savings are deep.

When Neither Window Works

Sometimes the deposits just do not support the loan. Business expenses may be heavy, the LLC may be too new, or the accounts may be too mixed. Other documentation paths can help, such as a P&L prepared by an accountant or an asset-based option.

For a rental you plan to buy through the LLC, step back and ask a different question. A bank statement loan tests your income and debts. Each new mortgage stacks against the same personal income, which can cap how many properties you finance this way. A DSCR loan tests the property’s rent against its payment instead. DSCR stands for debt service coverage ratio, and it compares monthly rent to the full monthly housing obligation. 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. Lendmire’s explanation of DSCR loan vs bank statement loan for investors covers that contrast. The complete DSCR loans guide covers the full picture.

Key Terms Defined

Bank statement loan: A mortgage that is reviewed around documented income taken from bank deposits instead of traditional personal-income documentation.

Lookback window: The number of months of statements the lender averages, usually 12 or 24.

Expense factor: The percentage of business deposits the lender treats as costs before counting the rest as your income.

Commingled account: One account that mixes personal and business money.

Vesting: The name in which the property is titled, such as you personally or your LLC.

A Quick Decision Checklist

Choose 12 months if your recent income is your strongest, your LLC is under two years old, or you want a lighter document load.

Choose 24 months if your deposits are seasonal, your last year was unusually strong, or you want a longer track record behind the file.

Ask the lender first about which windows the program allows, whether your LLC can be the borrower, how the expense factor is set, and whether an accountant’s letter can lower it.

Before you apply, gather every page of every statement, separate personal and business activity, and be ready to explain large or unusual deposits. Documents that are too old can also fail a lender’s review, so keep your file current.

The Verdict

Neither window is better in general. The 12-month path rewards growth and suits younger LLCs. The 24-month path rewards steadiness and suits seasonal or volatile earners. The right answer is whichever one the program allows and your deposits support. That is why running both calculations matters more than guessing.

For an LLC owner, two other questions often matter more than the window. Can the loan close in the entity’s name under the program? And should a rental purchase use your income at all, or the property’s rent? Settle those first. Then compare windows.

Lendmire is a mortgage broker, and its consumer mortgage licensing covers 16 states. A loan is reviewed on documented income under the applicable program, subject to lender guidelines, and none of this is a commitment to lend.

Tax treatment can depend on how the funds are used and how the property is held; investors should keep clear records and speak with a qualified tax professional before relying on any deduction.

This article is general information, not legal or tax advice. Consult a qualified professional, such as an attorney or CPA, about your own situation.

About Lendmire

Lendmire (NMLS# 2371349), a non-QM mortgage broker serving investors in 41 markets including Washington, D.C., helps structure DSCR scenarios commonly evaluated around a property’s rental income rather than personal income paperwork, subject to lender guidelines. A Scotsman Guide Top Mortgage Workplace in 2025 and 2026, Lendmire places loans through wholesale investor lenders and is not a direct lender.

References

1. CFPB Regulation Z § 1026.43

2. Cornell Legal Information Institute, 12 CFR 1026.43