A straightforward explanation about qualifying for a bank statement mortgage loan. An overview on personal and business bank statements. The difference in how income is calculated for each type of account and who is eligible. Further tips for self-employed borrowers about mistakes to avoid so their loan request is not denied after appication. More information can be found at: https://wcmortgagepro.com/loan-types/no-tax-returns

1. Qualifying for the
Bank Statement Loan Program

2. Who is Eligible?
• Self-employed borrower or business owner working in the same
profession for 2 years or more.
• Borrower who has a business license, dba, LLC, or corporation for past 2
years.
OR
Borrower has a letter from a certified public accountant (CPA) or licensed
tax preparer confirming self-employment for past 2 years
* this method helps 1099 and independent contractors who do not have a business name
• Borrowers with a housing payment history for the past 12 months.
* Borrowers without recent housing payment history need 30-percent down and credit
scores above 680.
* Conditions subject to change

3. Who is Not Eligible?
• If you have bank statements with another person on the
statement who is NOT a co-borrower, the loan may be
denied*.
• Borrowers with FICO credit scores below 580
• Borrowers who are not self-employed the last two years
*unless you can prove all the income is yours.

4. 3 Ways To Qualify for the Bank Statement Loan
Method #1
You Use a Personal Account and Deposits are
Directly from Self-employment

5. Method #1
• Provide copies of Bank Statements from the most recent 12
consecutive months
• The underwriter may request an additional 12 months (for a
total of 24) if income fluctuates a lot each month.

6. Method #2 of the Bank Statement Program
You Have Separate Personal and Business Accounts
(highly preferred)

7. Method #2 of the Bank Statement Program
You transfer income from your Business Account to
your Personal Account each month.
This way 100% of the eligible deposits may be used
for calculating income.

8. Method #2
• Provide most recent 12 months of personal bank statements as
well as business bank statements from the most recent 3 months
• Deposits on personal statements are averaged to establish
monthly income (only job related deposits)
• If monthly income fluctuates, the underwriter may request an
additional 12 months
• No P&L Statement is required

9. Method #3 using the Bank Statement Program
You Use ONLY Business Bank Statements
OR
Your Personal Account is used as a Business Account

10. Method #3 Business Bank Statements
Borrower will provide:
• Business bank statements from the most recent 12 or 24 months
• Business expense letter or Profit & Loss (P&L) by a CPA or a
Licensed Tax Preparer*
• Expense need to be reasonable based on occupation
NOTE: P&L income should be 90% or more of the income on the bank statements. A few
prorams allow for a borrower to prepare the P&L.
* Must provide business expense factor letter or underwriter will use 35 - 50% for business
expenses. Some programs allow borrower prepared P&L’s.

11. Program Highlights
• No IRS tax forms necessary.
• Allows up to 50 percent debt-to-income ratio
• 5/1, 7/1, 10/1 ARMs and 30-year fixed-rate options
• Loan-to-value ratios of up to 90 percent
• Cash-out options of up to $500,000 for a primary residence
• Loan amounts up to $5 million
• Primary residence, second home or investment property
* Loan terms and conditions are subject to change

12. Have more questions?
• Simply reach us online to get an answer.
• If you’re all set and ready to apply
Go to WCMortgagePro.com
* The information presented is intended for homeowners and buyers in California, Colorado, Florida and
Texas based on the loan originator’s state licensing on WCMortgagePro.com.
Although the information provided may also apply in other states. Loan guidelines are subject to change