Bank statement loan requirements
Bank statement loans require 12–24 months of business deposit statements, credit that meets the program requirements, and 10–25% down. No tax returns are used for income qualification.
By Sunrise Lending
Core requirement
Core requirement
What you need to know
- 12 or 24 months of business bank statements (all deposit-receiving accounts)
- Self-employment: 2+ years in most programs; some accept 12 months
- Credit score: mid-640s minimum; best pricing at 700+
- Down payment: 10–25% depending on property type and LTV tier
- Reserves: 3–12 months PITIA depending on LTV and loan amount
- No tax returns required for income qualification
- CPA letter optional — can raise qualifying income if actual expense ratio is below 50%
About this
How qualifying income is determined
The lender averages your monthly business deposits over the look-back period (12 or 24 months, depending on the program). They apply a 50% expense factor by default — the assumption that half your deposits went to operating costs. The remaining 50% is your qualifying income.
If your actual expense ratio is lower than 50% (common for service businesses and professional practices), a CPA letter on CPA letterhead documenting the real ratio overrides the default. This is one of the most effective steps a business owner can take before applying. A 40% actual ratio vs. a 50% default on $60K monthly deposits = $6,000/month more in qualifying income.
What accounts are included
All business checking and savings accounts that receive operating deposits. If your business uses multiple accounts for operational reasons — a main operating account, a payroll account, a savings reserve — all are included in the statement package. The lender aggregates across related accounts.
Personal accounts that primarily receive business income may also qualify under some programs, typically at 100% (no expense factor applied). If you're a sole proprietor who runs everything through a personal checking account, ask your officer whether that account qualifies under a personal-deposit variant.
Credit and reserves
A mid-640s credit score is the practical entry point for most bank statement programs. Pricing improves meaningfully at 700+ and again at 720+. Reserves — liquid assets held after closing — are typically 3–6 months of PITIA at standard LTVs, rising to 12 months at the highest LTV tiers.
How to prepare
Pull 24 months of statements for every business account that receives deposits. Make sure the statements are complete — no missing pages, no gaps. If you have a CPA, ask them whether a profit-and-loss letter documenting your expense ratio would change your qualifying income. Bring government ID and a complete list of your business entities.
Common questions
- How long do I need to have been self-employed?
- Most bank statement programs require 2 years of self-employment. Some accept 12 months for professionals transitioning from a W-2 role in the same field — for example, a CPA who recently started their own firm. The check-in identifies which programs accept your timeline.
- Can I use personal bank statements if I'm a sole proprietor?
- Some programs accept personal deposits at 100% (no expense factor) when business income genuinely flows through a personal account. Mixed accounts — personal and business in the same account — complicate the calculation. Separate accounts produce a cleaner file.
- What if my deposits vary significantly month to month?
- Seasonal businesses and project-based earners commonly have variable deposits. The 24-month average smooths out the variation. Lenders look at the trend — a business growing over 24 months is viewed more favorably than one with a single strong outlier month.
- Does a CPA letter always increase my qualifying income?
- Only if your actual expense ratio is below 50%. If your real overhead runs 60%+, the 50% default is already in your favor — a letter would lower qualifying income. Your CPA can help you calculate the actual ratio before deciding whether to submit a letter.
- What properties can I purchase with a bank statement loan?
- Primary residences, second homes, and investment properties. LTV limits and reserve requirements vary by property type. Investment properties typically require 20–25% down vs. 10–20% for a primary. The officer confirms the limits for your specific transaction.
Ready to see your options?
The 60-second check-in matches you to the right program. A licensed Sunrise loan officer reviews before anything formal moves.
Related resources
Sources
- 1.Consumer Financial Protection Bureau (CFPB). Ability-to-Repay and Qualified Mortgage Standards — Accessed June 2026
- 2.Internal Revenue Service (IRS). Schedule C (Form 1040): Profit or Loss from Business — Accessed June 2026
- 3.U.S. Small Business Administration (SBA). Self-Employed Workers and Small Business Facts — Accessed June 2026
Bank statement program requirements — look-back period, expense factor, credit minimums, LTV limits, and reserve requirements — vary by lender. Final approval, terms, and rates are determined by the lender after full underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.