BANK STATEMENT MORTGAGES
Explore mortgage programs that may evaluate qualifying business deposits and alternative income documentation.
Bryce Tralmer | Mortgage Loan Officer | NMLS #2712173 | Castle Hills Mortgage
Call Bryce: 469.215.4146
Instead of relying exclusively on traditional tax-return income calculations, certain non-QM mortgage programs evaluate qualifying deposits over an approved statement period. Depending on the lender and account type, business expenses and excluded deposits may affect the qualifying income calculation.
A hypothetical example
Eligible deposits over 12 months: $240,000. Average monthly eligible deposits: $20,000.
Illustrative qualifying income
At a hypothetical recognized income percentage of 50%, monthly qualifying income would be $10,000.
This example is educational only. Actual expense treatment, eligible deposits, qualifying income, and program requirements vary by lender. The 50% assumption is not a universal program guideline.
The right documentation depends on the loan program and the way your business receives income.
Personal Accounts
Some programs consider eligible deposits into personal accounts, subject to program requirements and verification.
Business Accounts
Some programs evaluate business deposits and account for eligible business expenses under the lender’s approved calculation method.
Transfers, loan proceeds, refunds, and other non-income deposits may be excluded.
Some programs evaluate 12 months of statements, while others may use 24 months or another approved period. Different documentation periods can produce different income calculations; not every lender offers every option.
Business history and income
Lenders may review business ownership and history, eligible deposits, expenses, and the completeness of documentation.
Your overall application
Credit, down payment, eligible assets and reserves, occupancy, property type, and loan amount may all affect eligibility.
Business owners, entrepreneurs, independent contractors, and other self-employed professionals may explore these programs when they meet lender and program requirements.
Both approaches evaluate your ability to repay, but their documentation and costs can differ.
Income documentation
Conventional programs generally review tax returns and other required records. Bank statement programs use eligible deposits and other lender-approved documentation.
Qualifying income
Conventional calculations follow applicable program guidelines. Bank statement calculations may account for business expenses and excluded deposits.
Program types and pricing
Conventional loans follow agency or lender requirements. Bank statement loans are often non-QM and may have different rates, fees, down payment, and reserve requirements.
Documentation and limitations
Both require verification and underwriting. Eligibility, acceptable statement periods, property rules, and loan amounts vary by lender.
Whether you’re an entrepreneur, contractor, consultant, or business owner, let’s evaluate whether a traditional or alternative-documentation mortgage fits your situation.
Bryce Tralmer | Mortgage Loan Officer | NMLS #2712173 · Castle Hills Mortgage | NMLS #262157
Consumer Complaint: Consumers wishing to file a complaint against a company or a residential mortgage loan originator should complete and send a complaint form to the Texas Department of Savings and Mortgage Lending, 2601 North Lamar, Suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov.
The content provided within this website is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply. Mortgage loans may be arranged through third party providers.