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Playbooks

The Bank Statement Loan Playbook

Qualifying on deposits instead of tax returns: 12 vs 24-month programs, expense ratios, and how underwriters turn your statements into usable income.

· 1 min read

Outline — pending named byline + LO review. Section scaffolding below; prose to be written.

Who this is for

  • Self-employed borrowers whose tax returns understate real cash flow
  • Business owners with strong deposits but heavy write-offs

How the income is computed

  • 12-month vs 24-month statement programs — when each wins
  • Personal vs business statements
  • Expense ratio / expense factor: how underwriters haircut deposits
  • Transfers, one-time deposits, and what gets excluded

Scenario examples

  • [Service business owner, 24-month personal statements]
  • [Established LLC, business statements, fixed expense factor]

Qualification matrix

Representative bank-statement parameters (to verify before publish)
ProgramMonthsTypical max LTVNotes
Personal statements12 / 24Fill from current lender matrices
Business statements12 / 24Expense factor applies

What typically goes wrong

Indicative rate range

Add rateRange + asOfDate to frontmatter once LO-reviewed.

  • The P&L-Only Playbook — when a CPA letter beats statements
  • The DSCR Playbook — when the property can carry the file instead

Estimates only. Actual rates, terms, and approval subject to lender underwriting, appraisal, and qualifying criteria.

We are currently licensed to originate in Texas. For other states this page is educational only and is not an offer to lend.