Bank Statement Program
Mortgages for your Self-Employed Clients
With seven methods for calculating income, FundLoans can maximize self-employed borrowers' business earnings to qualify them with bank statements alone. Multiple businesses? No problem. We'll even include a spouse's W2 income if needed. No tax returns necessary.
Our flagship bank statement programs are Apex and Arete.
Apex
Loans from $300K to $6M
- • Qualify with 12- or 24-Month Personal or Business Bank Statements
- • Variable Expense Ratio as Low as 20% Without CPA Letter
- • Can Be Combined with Other Income Sources, Including Asset Depletion
- • Up to 90% LTV
- • Min. FICO Score: 660
- • I/O Payment Option Available
- • 1-4 Unit Properties: Primary Residences, Second Homes, or Investment Properties
Arete
Portfolio 1st Mortgage — Loans from $300K to $3M
- • Qualify with 12- or 24-Month Bank Statements
- • 1099 Only Also Available
- • Up to 90% CLTV on Owner-Occupied Purchases
- • Owner-Occupied, Second Home, and 1-4 Unit Investment Properties
- • Min. Credit Score: 660 FICO
- • 30- or 40-Year Fixed and Interest-Only Available
How We Calculate Bank Statement Income
The method is chosen to fit how the business actually operates — which is how we qualify income other lenders leave on the table.
Personal Bank Statements
100% of business-related deposits divided by 12 or 24 months. Direct transfers of net income from the borrower's business are not reduced by an expense factor — the full deposit counts.
- •Multiple personal accounts may be combined
- •Spousal joint accounts workable when the borrower owns 100% of the business
- •W2, Social Security, and other income can be added on top
Business Bank Statements
Four ways to get to qualifying income — we use the one that fits the file:
- •Variable expense ratio — as low as 20% for service businesses with no employees, no CPA letter needed
- •CPA expense ratio — your borrower's CPA, EA, or CTEC sets the ratio by letter
- •P&L matched to deposits — CPA-prepared P&L validated against statement deposits
- •Deposits less withdrawals — net cash flow analysis for businesses that don't fit a ratio
Bank Statement Loan FAQ
How many months of bank statements are required? +
Either 12 or 24 consecutive months of complete personal or business bank statements, reflecting the most recent months available. Multiple personal accounts may be used; business statements must come from the same account. Transaction histories are not acceptable.
Are tax returns required for a bank statement loan? +
No. Qualifying income comes entirely from bank statement deposits. A third-party verification that the business exists and is in good standing is required, such as a signed CPA, EA, or CTEC statement. Other income sources like W2 earnings or Social Security can be combined with bank statement income when needed.
How is qualifying income calculated from bank statements? +
Personal bank statements: 100% of business-related deposits divided by 12 or 24 months, with no expense factor applied to direct transfers of net income from the business. Business bank statements offer four methods: a variable expense ratio based on business type and employee count, a CPA-provided expense ratio, a CPA-prepared P&L matched against deposits, or a deposits-less-withdrawals analysis. FundLoans underwrites to the method that best fits how the business actually operates.
What expense ratio applies to business bank statements? +
The minimum expense ratio is 20%. Service businesses with no employees use 20%, with 1-5 employees 40%, and with 6 or more employees 50%; product businesses use 50%. A CPA, EA, or CTEC letter can establish a different ratio, and ratios below 20% are considered case-by-case for business types that clearly support them, such as consulting, remote IT, and content creation.
How long does the borrower need to be self-employed? +
Generally two years in the same business. Borrowers with one to two years of self-employment can still qualify by documenting either two years of previous successful employment in the same line of work, or one year in the same line of work plus one year of formal education or training in it.
What is the maximum LTV on a bank statement loan? +
Up to 90% LTV/CLTV on owner-occupied purchase and rate & term transactions to $1M with a 680+ FICO. LTV tiers step down by loan amount and credit score, and interest-only requires a 700 minimum FICO. Minimum credit score is 660 and maximum DTI is 50% across the program.
What loan amounts are available? +
Bank statement loans start at $300K, with published pricing to $6M and larger super jumbo scenarios considered on a case-by-case basis. Super jumbo owner-occupied requires 24-month bank statements.
Can a borrower get a second mortgage with bank statements? +
Yes. FundLoans offers the industry’s only wholesale bank statement standalone 2nd mortgage, up to $1M, so self-employed borrowers can access equity without refinancing a low-rate first mortgage.
Self-employed borrower who wants to keep their first mortgage? See the bank statement standalone 2nd. Prefer a single document? Try P&L Only. Asset-heavy borrower? See the Asset Qualifier.