Bank Statement Business Description for Bank Statements + 1099 Only Programs

Income and Employment Documentation

  • 12 or 24 Most Recent Consecutive Monthly Bank Statements. Must verify all parties on bank account(s) will be on the Note, Otherwise an underwriter exception would be needed
  • Most Recent 2 Months of Business Bank Statements - If No Business Account Available

Personal Bank Statements

  • When using Personal Bank Statements, most recent 3 Months consecutive Business Bank Statements will be needed to illustrate revenue flow.100% of Deposits Taken for Income – Must Evidence
  • Activity to Support Business Operations and Reflect Transfers to Personal Account. If Deposits Are Not Evidence of Business Account Transfers, or

Business Bank Statements

  • Most Recent 12 or 24 Months of Business Bank Statements. Properly qualifying your bank statements and calculating your income
  • Rental Income: Schedule E or leases and bank statements showing rental income deposits
  • Liquid assets for reserves and/or supplemental income if applicable
  • Business Description

Verification of Employment Documents (VOE)

  • Business Description Letter

    • Letter of Explanation Summary Letter Business Overview (Template Loan Officer).

    • Borrower must supply a hand-written statement clearly describing the nature of the business and the income it generates, including an explanation of expenses and Expense Factor.

  • SS89 completed by the borrower and wet-signed and dated

  • CPA, Tax-Preparer, or Licensing Bureau Verifying 2-Year Self-Employment

  • CPA or Tax-Preparer "Expense Ratio Letter" (when applicable)

    • Example: If Business Expense Statement Letter Indicates a 25% Expense Ratio, Then 75% of Net Qualified Deposits Will Be Used Towards Qualified Income

    • Business Must be in Existence for 2 Years, Verified Through CPA, Tax-Preparer, Licensing Bureau, or Website

    • Etc.

Liquid Asset Statements:

  • Checking, Savings, Money Market, COD showing source of down payment, closing costs, settlement costs, and reserves

  • Cash Value Retirement Accounts,

  • Cash Value Trust Fund Accounts

  • Statements on Accounts Not Used for Income

Real Estate Owned (REO)

  • Statements on all mortgages

  • Homeowners Insurance Dec page (HOI)

  • Homeowners Association Statement (HOA)

  • Tax Statement (See Loan Officer)

  • Purchase contract If purchase loan

  • Recent Property Tax Bill
  • Property Profile(s) if refinance



   Loan Scenario Form - Credit Check Not Required  



Available in the following states:

Alabama, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Louisiana, Maine, Mississippi, Missouri, Nevada, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, and Wisconsin