Bank Statement Guide
Are Business Bank Statements Allowed?
Yes — on most Non-QM programs. Business statements are ideal when revenue stays in the entity account. Here is how expense factors, ownership docs, and multi-owner rules work.
When Business Statements Are the Right Path
Business accounts shine when client payments hit the entity — not your personal checking.
Expense Factors & CPA Options
How business deposits become qualifying income on Indiana Non-QM files.
Expense factors and CPA options vary by investor. We confirm the matched program before you apply.
Business vs. Personal — How We Choose
If most revenue hits the business account and you pay yourself periodically, business statements with an expense factor are usually the starting point.
If you also take consistent owner draws into a personal account, we may compare a personal-statement path using those draws. The path with higher net qualifying income — and cleaner documentation — wins.
Ryan & Steve review both account types on your actual statements so you document the right series from day one.
Common business-statement fits
- — Multi-member LLCs with shared operating accounts
- — S-corps receiving client payments at the entity
- — Retail, service, and trade businesses with POS deposits
- — Owners who keep personal and business finances separated
Keep Exploring
Related bank statement guides and Non-QM resources from Ryan & Steve.
Are Personal Bank Statements Allowed?
When personal accounts and owner draws are the better documentation path.
How Is Bank Statement Income Calculated?
Deposit averaging, expense factors, and ownership percentage.
How Many Months of Statements Are Required?
12 vs. 24 month lookbacks and consecutive statement rules.
Bank Statement Loans Overview
Full hub with eligibility, documents, and Get Pre-Approved CTAs.
2MG Daily
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Frequently Asked Questions
Are business bank statements allowed on bank statement loans?
Yes — most Non-QM bank statement programs accept business account statements when revenue stays in the entity. Underwriters apply an expense factor (or a CPA P&L on some products) so deposit totals reflect realistic net cash flow after operating costs.
Do I need to document ownership of the business?
Yes. Expect articles of organization, an operating agreement, or an ownership letter showing your percentage. Qualifying income is typically multiplied by your ownership share on multi-owner entities.
Personal vs. business — which produces higher income?
It depends on where revenue lands and which deposit or expense factor the investor allows. We often run both paths on the same months of deposits and pick the stronger qualifying income before you apply.
Are transfers between accounts counted twice?
No — properly underwritten files exclude transfers between your own accounts to avoid double-counting. Large unexplained deposits still need sourcing.
Have a Business Account Full of Deposits?
Ryan & Steve apply the right expense factor and ownership percentage to your business statements — so qualifying income reflects how the company actually runs.
The 2 Mortgage Guys
Ryan Minick and Steve DeLon — Branch Managers & Senior Loan Officers at Luminate Bank. Based in Kokomo, Indiana. Lending nationwide since 2005.
Contact
Ryan Minick NMLS# 203249
Steve DeLon NMLS# 202876
Luminate Bank NMLS# 1281698
Kokomo's Mortgage Team. Lending Nationwide.
1221 Appletree Lane, Kokomo, IN 46902
Luminate Bank NMLS 1281698 Bank Headquarters 2523 S. Wayzata Blvd., Suite 100 Minneapolis, MN 55405 (952) 939-7200. This is not an offer to enter into an agreement. Information provided is outlining the minimum down payment requirements as allowed by specific loan program and product guidelines and any information, rates and programs are subject to change without prior notice and may not be available in all states. All loans are subject to credit and property approval. Luminate Bank is not affiliated with any government agency. All rights reserved.
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