If your deposits say one thing and your tax return says another, this is the program built for the gap. Here's the exact formula lenders use, the estimator to run it on your numbers, and the published parameters — labeled as what they are.
The lender totals your eligible deposits over 12 or 24 consecutive months of bank statements, removes transfers and non-income deposits, applies the program's factor, and averages. The formula:
Deposits × (1 − expense factor) × your ownership % ÷ months = qualifying monthly income
Planning estimate only, using the standard published formula. A lender's review removes ineligible deposits (transfers, one-time windfalls) and confirms the expense factor — your real number comes from the file review.
From PRMG's Non-QM Income Qualifying Product Profile (09/17/2026) and other published lender programs, fall 2026: minimum credit 620 (at 620, DTI capped at 43% and LTV at 75%; 660 opens DTI to 50%); best-tier LTV to 89.99% at 45% DTI; loans to $3.5M; two years of self-employment history; no tax returns and no 4506-C for income. Other published programs cluster at 640+ credit, 10–20% down on a primary home, and no mortgage insurance even under 20% down. These are the sources' published guidelines, not a quote — investors vary and guidelines change.
The expense factor is where these files are won. Borrowers who walk in with business statements and accept the 50% default leave half their income on the table; borrowers whose CPA documents a 20% real expense ratio qualify on a different life. Document preparation isn't paperwork — on a bank statement loan, it IS the income.
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Transfers between your own accounts, loan proceeds, and one-time non-income deposits (like a vehicle sale) are stripped out. The lender is reconstructing business revenue, not counting every dollar that touched the account — which is why clean, consistent deposits read better than spiky ones.
Most published programs require two years of self-employment history (not two years of statements — the statement period is 12 or 24 months). Some 1099 paths accept one year with prior experience in the same line of work.
They price above agency rates — you're paying for a documentation method agency won't offer. The honest comparison isn't against a loan you were denied for; it's against waiting years to "fix" tax returns that were never broken. A broker shows you both doors with real numbers.
Get the estimate verified on your real statements. The review confirms eligible deposits, your expense factor, and which investors price your file best.
Prefer to talk it through? Call Douglas direct: (904) 517-4049.
Douglas Wilkerson, Mortgage Broker | Branch Manager · Freeman Douglas Corporation, Jacksonville Beach, FL · [email protected]
Freeman Douglas Corporation is a DBA of Edge Home Finance. This is not a promise to lend — all credit decisions are subject to approval. Douglas Wilkerson, NMLS #1680719 | Edge Home Finance, NMLS #891464. Verify licensing at nmlsconsumeraccess.org. Equal Housing Opportunity.