What are the requirements for a bank statement loan?
Most lenders want about two years of self-employment, 12 or 24 months of personal or business bank statements, a credit score commonly 620–660 or higher, and a down payment from about 10% on a primary home with strong credit. Debt-to-income commonly runs up to 50%, or 55% with conditions. Terms vary by lender.
For a home you live in, a bank statement loan is a consumer mortgage. The lender must verify that you can repay under the Ability-to-Repay rule in 12 CFR 1026.43, using your statements as the income record. The bank statement program page covers the whole product.
Bank statement loan requirements at a glance
| Requirement | Common range (varies by lender) | What to ask |
|---|---|---|
| Self-employment | Commonly 2 years, shown with a business license, CPA letter or similar; shorter with prior experience in the same line of work at some lenders | How do you verify my business? |
| Statements | 12 or 24 consecutive months, personal or business | Which period and account type work better for me? |
| Income method | Personal: commonly 100% of eligible deposits. Business: expense factor or CPA ratio | Which expense factor will you use? |
| Credit score | Minimums commonly ~620–660+; best terms often at 700+ | Which score tier sets my LTV? |
| Down payment | From about 10% on a primary purchase with strong credit | What is the max LTV at my score and loan size? |
| DTI | Commonly up to 50%; 55% with conditions | Do I qualify for the higher DTI tier? |
| Reserves | From none on many loans up to ~$1.5M to several months on larger or higher-LTV loans | How many months, and which accounts count? |
| Occupancy | Primary, second home and, with many lenders, investment property | How is my occupancy treated? |
Credit score and maximum LTV tiers
Credit and loan size set how much of the price a lender will finance. The most flexible tiers in current published programs look like this:
| Credit score | Primary-home purchase, best available |
|---|---|
| About 620 | Up to about 80% LTV on loans up to about $1M |
| About 680+ | Up to about 90% LTV on loans up to about $1M |
| About 700–720+ | Up to about 90% LTV on loans up to about $1.5–2M |
| About 720+ | Loans up to about $4M at about 70% LTV |
Second homes, investment properties and cash-out refinances usually get less leverage. These are the best tiers currently available, not what every lender offers; your actual terms depend on the lender’s current matrix.
Debt-to-income limits
DTI compares your total monthly debts, including the new housing payment, with qualifying monthly income. Bank statement programs commonly allow up to 50%. Some allow up to 55% on a purchase or rate-and-term refinance with about 680+ credit and an LTV of about 70% or less, sometimes with a residual-income test. Your income figure comes from the statements, so the expense factor and which deposits count move DTI as much as your debts do.
Worked example: personal statements and a 90% LTV purchase
A self-employed borrower with 700 credit uses 12 months of personal statements showing $162,000 of eligible deposits, and buys a $500,000 primary home with 10% down. The housing payment (PITIA) is an illustrative $3,900 and other debts are $600 a month.
| Monthly income: $162,000 ÷ 12 (100% of personal deposits) | $13,500 |
| Loan: 90% × $500,000 | $450,000 |
| Down payment: $500,000 − $450,000 | $50,000 |
| Housing payment, PITIA (illustrative) | $3,900 |
| Other monthly debts | $600 |
| Total monthly debts | $4,500 |
| DTI: $4,500 ÷ $13,500 | 33.3% |
| Ceiling at 50% DTI: $13,500 × 50% | $6,750 |
| Ceiling at 55% DTI, if eligible: $13,500 × 55% | $7,425 |
At 33.3% the file has room under the 50% ceiling. If the same borrower used business statements with a 30% expense factor on the same $13,500 average, income would drop to $9,450 and DTI would rise to $4,500 ÷ $9,450 ≈ 47.6%. Account type matters; the 12 vs 24 months guide shows how the period matters too.
Want your statements run through real programs?
Share your monthly deposits, account type, credit range and the home you want. LoanFight reviews the scenario and then connects you with an appropriate lending partner.
Tell Us About Your Deal →Reserves and credit events
Reserves are funds left after closing, measured in months of the housing payment. The most flexible current programs require none on many loans up to about $1.5M (about 3 months above 75% LTV) and waive them on some primary purchases below 70% LTV; others ask for up to about 9 months on larger loans. Gift funds usually cannot count toward reserves.
Credit events: some programs accept a bankruptcy, foreclosure, short sale or deed-in-lieu as little as 12 months after the event, at up to about 70% LTV on loans up to $1M. About 24 months commonly opens more leverage, and 48 months typically removes the restriction. Recent mortgage lates can also cut the maximum LTV.
Documents to prepare
- 12 or 24 months of complete statements for every account used (all pages)
- Proof of self-employment: business license, CPA or tax-preparer letter, or similar
- Proof of your ownership percentage in the business
- A CPA or tax-preparer expense ratio or a third-party P&L, if you want to use one instead of the standard factor
- Explanations and documents for large or unusual deposits
- About 2 recent months of business statements if you qualify on personal statements
- Asset statements for down payment, closing costs and reserves
- Identification and authorization to pull credit
Already denied on tax-return income? See what to do after a self-employed denial.
Bank statement requirements: frequently asked questions
What credit score do I need for a bank statement loan?
Minimums commonly sit around 620–660 or higher. In current published programs, about 620 can reach up to about 80% LTV on a purchase up to $1M, and about 680+ can reach up to about 90%. It varies by lender.
How much down payment does a bank statement loan need?
From about 10% on a primary-home purchase with strong credit, since some programs reach about 90% LTV. Lower scores, larger loans, second homes, investment properties and cash-out usually need more equity.
What DTI is allowed on a bank statement loan?
Commonly up to 50%. Some programs allow up to 55% on a purchase or rate-and-term refinance with about 680+ credit and about 70% LTV or less.
How long do I need to be self-employed?
Two years is common, shown with a business license, CPA letter or similar. Some lenders accept a shorter history with prior experience in the same line of work, usually with tighter terms.
Can I get a bank statement loan after bankruptcy or foreclosure?
Often yes, once enough time has passed. Some programs accept the event as little as 12 months later at up to about 70% LTV on loans up to $1M; 48 months typically removes the restriction.
Do I need reserves for a bank statement loan?
It depends on loan size and LTV. Some current programs require none on many loans up to about $1.5M, about 3 months above 75% LTV, while others require more on larger loans.
Check the requirements against your actual file
A rough monthly deposit figure, your account type, credit range and price range are enough to start. LoanFight reviews your scenario before connecting you with an appropriate lending partner.
Tell Us About Your Deal →Sources and review notes
Ability-to-Repay and income verification for owner-occupied loans: CFPB, Regulation Z, 12 CFR 1026.43 and its official interpretation (financial-institution records as third-party income records). Ranges describe commonly published non-QM self-employed lending terms as of October 2026; they are not any single lender’s guidelines and not a LoanFight quote. All arithmetic was checked line by line.
Educational information only, not an offer, approval or financial, tax or legal advice. LoanFight is not a direct lender and does not set final loan terms. Equal Housing Opportunity.