Loan Program
The tax return that makes your accountant proud is the one that makes an underwriter say no. Every legitimate deduction you take lowers the income a conventional lender is allowed to count. Bank statement lending exists because that gap is real, and Tyler has been on the wrong side of it himself.
The lender reviews twelve or twenty-four months of business or personal bank statements and calculates qualifying income from the deposits, applying an expense factor — sometimes a flat percentage, sometimes a figure your accountant certifies. No tax returns are used at all.
Transfers between your own accounts, one-off deposits that are not revenue, and heavy cash all complicate the calculation. If you know you will buy in the next year, running business income through one clearly identifiable account makes an enormous difference to the number an underwriter arrives at.
If you hold substantial savings or retirement assets, some lenders will convert a portion of that balance into a monthly income figure instead of looking at deposits at all. For borrowers with strong balance sheets and irregular income, it can qualify a file that nothing else will.
These are non-QM loans and they price above conventional — you are paying for the flexibility. Down payment requirements are typically ten to twenty percent, and reserves matter. If two years of clean tax returns would qualify you conventionally, that is the cheaper path. Bank statement lending is for when it genuinely would not.
Twelve or twenty-four, depending on the lender and programme. Twelve-month options exist and generally price slightly higher.
Often yes, particularly for sole proprietors. The calculation differs between personal and business accounts, so which one to use is worth deciding before you apply.
Usually, though some lenders accept one year with a strong related work history. It is a question worth asking rather than assuming you are excluded.
Tyler McCain is based in Lebanon, TN and works across the Nashville metro.
Tyler McCain is licensed in Alabama, Florida, Kentucky, Ohio, Tennessee and Texas. Programme rules are federal, but the markets are not.
Qualify on the property's rent, not your tax returns.
Read more →Financing above the conforming limit without the bank runaround.
Read more →As little as 3% down, with mortgage insurance that comes off.
Read more →Lower the rate, drop the mortgage insurance, or pull cash out.
Read more →That depends on numbers we have not seen yet. Two minutes, no credit pull, and Tyler will tell you straight — including if the answer is a different programme entirely.
