Let the business cash flow tell the story
For an eligible owner-user or commercial real estate investor, a bank-statement commercial program may offer an alternative to relying solely on traditional tax-return income. The lender can evaluate qualifying business cash flow through eligible bank statements along with the property, occupancy, leases and overall borrower profile.
Two distinct paths
Owner-occupied: the borrower’s operating business occupies some or all of the property. Investor / tenant-occupied: third-party tenants occupy the property and the investor uses eligible business bank statements as part of the qualification review.
Owner-occupied: the borrower’s operating business occupies some or all of the property. Investor / tenant-occupied: third-party tenants occupy the property and the investor uses eligible business bank statements as part of the qualification review.
Why borrowers look at this path
| Scenario | How it may be reviewed |
|---|---|
| Owner-occupied commercial property | Eligible business bank-statement cash flow may provide another view of the operating business. |
| Tenant-occupied investment property | Eligible investor business bank statements may be reviewed alongside leases, occupancy and property economics. |
| Mixed owner-user and tenant occupancy | Business strength, third-party tenancy and the property structure are reviewed together. |
What to have ready
Business bank statements, entity and ownership information, property details, occupancy/use, requested loan amount, credit profile and other lender-requested documentation. The exact statement period and expense treatment vary by program.
Common questions
Does the business have to occupy the property?
Not necessarily. Eligible programs may serve owner-occupied, mixed-use, or tenant-occupied investment properties. The underwriting path changes with occupancy and lender guidelines.
Are tax returns always eliminated?
Not necessarily. Documentation varies by lender. The point is that eligible bank-statement cash flow may provide an alternative qualification method.
Can this be used for a purchase or refinance?
Potentially, subject to lender guidelines and the complete transaction.
Related programs
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Tell Us About Your Deal →Educational information only. This is not a commitment to lend, approval or rate quote. Program availability and documentation requirements vary by lender and complete scenario.