Who this is for
You run a business, you 1099, or you own a practice. The tax return is honest — and it is also full of write-offs. A W-2 underwriter sees a small number. Your deposits tell a different story.
Bank statement loans exist for that gap. They are not a way to skip underwriting. They are a different income test: actual money that hit the account, averaged over a statement period.
How it works
Lenders commonly ask for 12 or 24 months of personal or business statements. Every page, including months that look quiet. Underwriters add qualifying deposits, pull out transfers between your own accounts, and divide by the number of months.
When you use business-account deposits, some lenders apply an expense factor (they assume a share of deposits went to business costs) or they may accept a CPA letter that states a more accurate expense picture. The factor is a guideline, not a promise, and it varies by lender.
Credit floors vary by lender. We would rather review the file than post a number that may not apply to you.
Property types and occupancy
Common property types include single-family, condo, townhouse, 2-4 unit. Occupancy may be primary, second-home, investment. Condos still need project review. Unique properties need a conversation before you spend money on an appraisal.
What to gather
- Government photo ID
- 12 or 24 months of statements, all pages, personal or business
- A short description of what the business does
- Purchase contract or current mortgage statement, if you have it
- Entity documents if the borrower will be an LLC
Do not send Social Security numbers, dates of birth, or bank logins through this website.
This is not a commitment to lend. All loans subject to credit approval, underwriting guidelines and property eligibility. Programs and guidelines are subject to change without notice. Liberty Group Funding, Inc. is a mortgage broker and does not make loans directly.