Business bank statements
12–24 months of statements from a business checking or savings account, used as the primary income document for bank statement loans. Lenders review for consistent monthly deposit averages, low NSF (non-sufficient funds) history, and a coherent business story. Large irregular deposits and interaccount transfers require written explanation.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Tax transcripts (IRS 4506-C) — The IRS form lenders use to request your tax transcripts directly from the IRS, verifying that the returns you…
- P&L statement (Profit and Loss) — A business income statement showing revenue minus expenses over a period. For mortgage purposes, a P&L must be…
- Expense factor / expense ratio — The percentage of bank deposits a lender treats as business expenses when calculating qualifying income on a b…
- Letter of explanation (LOE) — A written statement from the borrower explaining an unusual item in the application: a large deposit, a credit…
- YTD P&L — A profit-and-loss statement covering the current year to date — from January 1 through the application month.…
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Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.