Your self-employed borrowers shouldn't be penalized for how they run their business. BFF's Bank Statement program qualifies on 12 or 24 months of deposits — personal or business — nothing else required.
Program at a Glance
A bank statement loan is a non-QM mortgage that uses 12 or 24 months of bank deposits to calculate income instead of tax returns or W-2s. It was built for borrowers who are genuinely profitable but whose tax returns don't reflect it — self-employed business owners, freelancers, real estate investors, and anyone who writes off a significant portion of gross income.
1 Choose Personal or Business Statements Borrowers use either personal bank statements or business bank statements - not a mix of both. The choice is whichever produces the stronger qualifying income. 12 or 24 months of statements are used. 2 Calculate Average Monthly Deposits Total all qualifying deposits across the statement period, then divide by the number of months. Personal statements: 100% of deposits counted. Business statements: 50% expense factor applied (or actual expenses per CPA letter). 3 Apply to DTI The resulting monthly income figure is used to calculate the borrower's debt-to-income ratio against PITIA + all other monthly obligations. Standard non-QM DTI thresholds apply. 4 Price & Submit Run the scenario through the BFF Quick Pricer, confirm rate/LTV/FICO eligibility against the matrix, and submit to the BFF broker portal. No 4506-C required. No IRS transcript. We Deliver.
Key parameters from the BFF Bank Statement Matrix. Download the PDF for complete guidelines before pricing any Bank Statement scenario.
| Parameter | Requirement |
|---|---|
| Max Loan - Purchase | $4,000,000 |
| Max Loan - Cash-Out | $3,000,000 |
| Max LTV - Purchase | 90% (FICO & loan amount tiered - see matrix) |
| Max LTV - R&T Refi | 85% |
| Max LTV - Cash-Out | 80% |
| Min FICO | 620 (primary wage earner FICO used) |
| Statement Period | 12 months OR 24 months (borrower/broker selects best option) |
| Statement Type | Personal bank statements OR business bank statements (not mixed) |
| Business Expense Factor | 50% standard · OR actual expenses via CPA/EA letter |
| Occupancy | Primary Residence · Second Home · Investment Property |
| Loan Purpose | Purchase · Rate & Term Refi · Cash-Out Refi |
| Property Types | SFR · PUD · Warrantable & Non-Warrantable Condos · Condotels · 2-4 Unit · Manufactured |
| Interest Only | Available at 640+ FICO · Max 85% LTV (purchase) · Max 80% LTV (R&T) · Max 75% LTV (C/O) |
| 40-Year Fixed | Available with or without IO feature |
| Reserves | Cash-out proceeds eligible · Gift funds eligible |
| Investment / PPP | Investment properties with income from PPP treated as business-purpose |
| Min Loan Amount | Per BFF state licensing minimums (typically $75,000-$100,000) |
| Note | LTV limits are tiered by loan amount and FICO score. Always check the full matrix grid before pricing. 90% LTV requires higher FICO and lower loan amounts. See matrix for complete grid. |
High revenue, low taxable income due to deductions. Business statements + 50% expense factor or CPA letter documents actual cash flow.
Attorneys, consultants, physicians with private practices. Personal deposits show consistent income that tax returns obscure.
Investors with multiple properties whose schedule E losses drop reported income below qualifying thresholds. Rental deposits speak for themselves.
Construction, HVAC, electrical, plumbing — cash-heavy businesses where project revenue is robust but heavily expensed on taxes.
Uber, DoorDash, Amazon Flex, Etsy sellers. Consistent deposit flow over 12–24 months demonstrates actual earning power.
2 years of self-employment not always required. Strong recent deposit history can qualify borrowers who just made the switch.
BFF accepts either 12 or 24 months of personal or business bank statements. You and your borrower choose the period that produces the strongest qualifying income. 24 months generally smooths out seasonal income swings; 12 months can be advantageous if recent income is higher than the prior-year average.
The standard BFF expense factor for business bank statements is 50% — meaning 50% of gross deposits is used as qualifying income. Alternatively, a CPA or EA letter documenting actual business expenses can replace the standard factor if the real expense ratio is lower, resulting in higher qualifying income.
No. BFF requires consistency — the file must use either personal bank statements or business bank statements for the full statement period. Mixing statement types is not permitted. Choose the account type that best reflects the borrower's income flow.
Yes. Interest-only is available for borrowers with a 640 or higher FICO score. LTV limits are tighter on IO loans: 85% max LTV on purchase, 80% on rate-and-term, and 75% on cash-out. The 40-year fixed term is also available with or without the IO feature.
Eligible property types include SFR, PUD, warrantable and non-warrantable condos, condotels, 2–4 unit properties, and manufactured homes. Investment properties used as short-term rentals (Airbnb, VRBO) are eligible and treated as business-purpose transactions.
BFF Bank Statement Matrix — Rev. Feb 2026
If your borrower's business account shows high deposits but low net due to payroll, try personal statements instead. Some borrowers have stronger personal accounts — especially owners who pay themselves a salary.
Non-QM decisions typically within 48 hours of complete file submission. Check current turn times before locking.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
