Personal Bank Statements Business Bank Statements
Borrowers must be self-employed for at least 2 years Business must be in existence for 2 years

24 months bank statements required with no gaps

Income to be used is the less of: Income used on 1003; Bank statement calculator income; P+L income

All individuals on statement must be on loan Multiple personal statements may be used. Borrower must own at least 25% of business Borrower must own 100% of business Borrower must provide LLC docs:

  • Articles of Incorporation
  • Operating agreement
  • Good standing letter
  • Copy of business license
Only 3 NSF’s allowed within a 12-month period

(anything above 3 NSF’s may be considered under a portfolio product)

***ONLY FOR BUSINESS BANK STATEMENTS***

PROFIT AND LOSS MUST COVER THE 24 MONTH PERIOD OF THE BANK STATEMENTS PROVIDED

Option #1 -P+L must be completed by the CPA/licensed tax preparer (P+L used to off‐set business expenses) Gross Revenue can only be 5% higher than the total deposits used for qualifying Option #2 – P&L completed and signed by the borrower, Gross revenue can only be 5% higher than the total deposits. Also, will complete an business expense report in order to determine business expenses for the industry standard.
Letter from the CPA/licensed tax preparer must be completed and signed showing:

  • Years in business
  • Name of business
  • Type of business
  • % of ownership of business
  • Must verify that the self‐employment was confirmed through review of the borrower’s financial documents/tax returns
Deposits showing on statement that can be used for qualification:

  • Deposit
  • ATM deposit
  • Electronic Deposit
  • Check Deposit
  • Transfers from business to personal
Deposits showing on statement that can be used for qualification:

  • Deposit
  • ATM deposit
  • Electronic deposit
  • Check deposit
  • ACH Deposits
  • Deposits involving services rendered
Deposits that cannot be used:

  • Transfers between personal account
  • ACH Deposits
Deposits that cannot be used:

  • Transfers
IF A TRANSFER IS TO BE INCLUDED IN THE CALCULATIONS, FULL SOURCING MUST BE PROVIDED TO PROVE THAT IT WAS BUSINESS RELATED
Any deposits being used to qualify which are larger than 50% of the income being used to qualify must be sourced (Personal only)