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Bank Statement Program

bank statement program

Are you self-employed? Do you earn seasonal income? Are you a consultant, promoter, tax-preparer, freelancer, artist or other professional with an irregular income stream? If so, our Bank Statement Program may be perfect for you!

How does it work?

Simple. Instead of requiring years of tax documents, W-2s, or proof of regular payroll checks, we base our lending decision on a combination of your bank statements and a Profit & Loss statement for your business.

Even if you earn your income in just part of the year, as long as you maintain bank accounts documenting your income stream we can help!

We offer three scenarios for our Bank Statement Program.

Here’s how each scenario works:

Scenario 1 – Your Personal and Business finances Utilize a Single Account

  • Borrower provides bank statements from the most recent 12 consecutive months
  • Borrower provides a Profit & Loss (P&L) statement prepared by a CPA or a Licensed Tax Preparer
  • The expenses shown on the P&L must be reasonable considering the borrower’s type of self-employment
  • The P&L will be the primary source for information to qualify the borrower
  • The revenue from the P&L will be supported by the bank statements the borrower provides
  • The bank statements must reflect deposits no less than 5% of the revenue stated on the P&L
  • The underwriter reserves the right to request bank statements from up to 24 consecutive months

Scenario 2 – You Maintain Separate Personal and Business Accounts

  • No P&L Statement is required
  • Only your personal bank statements will be considered to determine eligibility
  • Borrower provides personal bank statements from the most recent 12 consecutive months in addition to business bank statements from the most recent 3 months (in order to verify the maintenance of separate accounts)
  • Annual deposits are averaged to determine monthly income
  • The underwriter reserves the right to request bank statements from an addition 12 consecutive months
  • If an optional P&L prepared by a CPA or a Licensed Tax Preparer is provided, that will determine borrower’s monthly income

(For both Scenario 1 and Scenario 2, the information provided must support the size of the requested transaction. Inconsistencies may necessitate additional documentation such as tax records.)

Scenario 3 – You Only Use Business Bank Statements to Qualify your Loan

  • Borrower provides business bank statements for the most recent 12 consecutive months
  • Borrower provides a Profit & Loss (P&L) statement prepared by a CPA or a Licensed Tax Preparer
  • The business bank statements must reflect deposits no less than 5% of the revenue stated on the P&L

(In all 3 scenarios, issues such as Non-sufficient Funds (NSF) or Over-Drafts, even if so-called Overdraft Protection is utilized, may have a bearing on the underwriter’s decision. In general, a maximum of 3 NSF notices per 12 consecutive months will be allowed, whether they occurred in a single month or over the entire 12-month span. Exceptions may be allowed on a case-by-case basis, under review of the underwriting manager.)

For more information about our Bank Statement Program, contact us today!

To contact us by phone call 800-535-0270 or email us by clicking here.

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