Real-estate agent · 1099 · 3 yrs · 700 · bank-stmt
| Borrower | 1099 real-estate agent |
| Self-employed | 3 years |
| Credit | 700 |
| Program | 12-month bank-statement loan |
| Price | $500,000 (illustrative) |
| Down payment | 15% |
| State | NV |
| Outcome | Approved |
The scenario
This agent earned strong but lumpy commission income — a few big months drove most of the year. Their tax returns, reduced by marketing, vehicle, and office write-offs, didn't reflect the cash actually flowing through their account, and a couple of slower months made any single pay period look weak.
A 12-month bank-statement loan averaged a full year of deposits, smoothing the lumps into a steady qualifying figure. With a 700 score and 15% down, the program read past the seasonality and the write-offs to the underlying income, and the file was approved.
What made it work
- 12-month averaging smoothed seasonal commission swings
- Deposit-based income exceeded the written-down tax return
- 700 score and 15% down met program requirements
- Dedicated business account simplified documentation
Lessons you can use
Averaging tames lumpy income
Commission earners often have a few huge months and several quiet ones. A bank-statement program that averages 12 or 24 months turns that volatility into a single qualifying number, which is far friendlier than a conventional look at one or two recent pay periods.
Write-offs hurt agents especially
Real-estate agents tend to deduct heavily — marketing, vehicle, licensing, office. Those deductions can shrink Schedule C income to a fraction of deposits. A deposit-based loan sidesteps the problem, which is why bank-statement programs are so popular in commission-driven professions.
12 vs. 24 months is a real choice
A 12-month look-back is easier to document and can favor a recent strong year; 24 months smooths longer cycles and sometimes prices better. Choosing the period that best reflects your income — and asking each lender how it affects pricing — is part of shopping a bank-statement loan well.
Your next step
If this scenario rhymes with your situation, start with Bank statement loans, explained for the full picture, then run your own numbers with the Bank statement income estimator. Every real application is different — use these scenarios to learn the patterns, then confirm specifics with a licensed loan officer.
This profile is a composite educational scenario created by Mortgage Merlin editorial staff — not a real person, transaction, or testimonial. Figures are illustrative and not a quote, pre-approval, or offer of credit. Mortgage Merlin is a publisher, not a lender or broker.