How is Bank Statement Income Calcuated?

Business Bank Statements

  • Total deposits, less business expense ratio, annualized, multiplied by the % of ownership
  • Standard 50/50 deposit to expense ratio is used but can be up to 65/35 if supported by a CPA expense statement
  • Borrower(s) must own at least 50% of the company to use a business account for income

Personal Bank Statements -

  • If borrower also has a Business Bank Account we will use 100% of personal account deposits averaged over a 12/24 mo. period with 2 mo. business bank statements
  • Without Business Bank Account an expense ratio will be applied
  • Working from home with no employees is eligible for an 85/15 deposit to expense ratio supported by a CPA expense statement, otherwise max 65/35 ratio