Bank Statement Loan is a Non-QM program that qualifies self-employed borrowers on 12-24 months of business or personal bank statements rather than tax returns. Typical formula: deposits × industry expense ratio = qualifying income. For investor lending, bank-statement programs bridge the gap when tax returns understate cash flow due to depreciation, write-offs, or aggressive expense capture. Documentation discipline (no NSF, no large unexplained deposits) is decisive at underwriting.
Underwriting