Business Owners
Established owners whose legitimate business deductions reduce taxable income while deposits show ongoing revenue.
MORTGAGES FOR FLORIDA BUSINESS OWNERS
Bank Statement Loans in Florida
Your business and personal cash flow deserves a closer look.
Why? Your Cash Flow Tells the Real Story. A Smarter Alternative to Tax-Return Income Qualification.
1st Florida Lending Corp. · Orlando-based Direct Mortgage LenderSELF-EMPLOYED FINANCING
- 12 or 24 MonthsChoose the review period
- Personal or BusinessEligible bank deposits
- Business OwnersAlternative income docs
- Purchase or RefinanceIncluding eligible cash-out
THE BASICS
What Is a Bank Statement Loan?
A bank statement loan is a mortgage that uses eligible deposits from 12 or 24 months of personal or business bank statements to evaluate income. It gives eligible self-employed borrowers an alternative to documenting qualifying income through tax returns, W-2s or pay stubs.
Our self-employed bank statement loan programs offer a flexible lending solution without traditional tax-return income documentation. We compare options across multiple wholesale underwriters to help match your business cash flow, property goals and financial profile with an available program.
Business deductions can lower the taxable income shown on your returns without telling the full story of your cash flow. A bank statement mortgage allows eligible self-employed borrowers to document income using 12 or 24 months of personal or business bank statements instead of relying on traditional tax-return income documentation.
Underwriting reviews eligible deposits, business expenses and income consistency, along with your credit, down payment and the property. This is an alternative-documentation loan, not a no-document loan or a guarantee of approval.
WHO IT CAN HELP
A mortgage path for people who work for themselves
Independent Professionals
Self-employed consultants, contractors, freelancers and real estate professionals with documented income deposits.
Seasonal Earners
Borrowers whose cash flow varies through the year and benefits from a careful review of a complete statement history.
This approach may suit sole proprietors, entrepreneurs, online retailers, gig-economy workers, 1099 consultants, independent contractors and Realtors with an established self-employed business and eligible income deposits.
COMPARE YOUR DOCUMENTATION OPTIONS
12 months or 24 months: which tells your story?
12-Month Bank Statement Loans
One year of consecutive statements provides a view of your most recent business performance. This can be useful when the latest year better represents current income. The shorter statement period does not remove the need to verify self-employment history or meet the program’s other requirements.
24-Month Bank Statement Loans
Two years of consecutive statements provide a broader cash-flow history. The longer review can smooth seasonal variation and help underwriting understand trends. It does not automatically produce higher qualifying income or better terms; the result depends on the complete file and current program.
| 12-month review | Eligible deposits averaged over 12 consecutive months; focuses on the most recent year. |
|---|---|
| 24-month review | Eligible deposits averaged over 24 consecutive months; provides a longer view of consistency and seasonality. |
| Both options | Personal or business statements may be considered. Credit, expenses, ownership, assets and property eligibility still matter. |
| Choosing a period | A loan officer reviews your income trend and available programs; the shorter period is not always the better choice. |
FROM DEPOSITS TO QUALIFYING INCOME
How bank statement income is reviewed
- 1.
Identify eligible income deposits
Review complete statements and distinguish income from transfers, borrowed funds, refunds and other deposits that may not qualify.
- 2.
Account for business expenses
For business statements, apply the program’s expense method. An accepted CPA-prepared expense calculation may be considered where permitted. Business ownership can also affect the calculation.
- 3.
Average income over the selected period
Divide the eligible income by 12 or 24 months, then evaluate stability and any declining or unusual trends.
- 4.
Evaluate the complete mortgage application
Review the resulting income together with monthly debts, credit, down payment and property eligibility. Deposits alone do not establish approval.
Personal statements versus business statements
Personal bank statement loans use 100% of eligible income deposits, averaged over 12 or 24 months. Business bank statement loans may use up to 80% of eligible deposits after an expense adjustment; the accepted percentage depends on the selected program and business profile. You do not have to own 100% of the business, but your ownership share can affect qualifying income. Transfers must not be counted twice, and multiple accounts are permitted on some programs.
PLAN WITH YOUR CASH FLOW
Bank Statement Income Estimator
Explore the effect of the statement period and an assumed business expense percentage. Personal statements use 100% of eligible deposits. For business statements, a 20% expense assumption illustrates retaining 80% of deposits before an ownership adjustment. Use eligible deposits only. The result is an educational estimate, not your approved qualifying income. This estimator does not apply a business ownership percentage; partial owners need an officer’s adjusted calculation.
Two illustrative examples
| Personal statements | $144,000 in eligible deposits ÷ 12 months × 100% = $12,000 per month before further underwriting review. |
|---|---|
| Business statements | $240,000 ÷ 12 months × 80% retained deposits × 100% ownership = $16,000 per month. At 50% ownership, this example becomes $8,000. The accepted expense method depends on the program. |
OPTIONS ACROSS FIVE UNDERWRITERS
Bank Statement Loan Program Highlights
These highlights combine bank statement options from five wholesale underwriters. They describe our program range, not a single loan with every feature or maximum available together.
Important: Program highlights and guidelines can change without notice. Availability, rates and final terms depend on the selected underwriter, credit, loan amount, occupancy, property and complete application. Maximum financing and other features do not apply to every scenario.
- Statement history: 12 or 24 months of personal or business bank statements
- Loan amounts: $150,000 to $5,000,000; ask your loan officer about larger requests
- Primary-home financing: Borrow up to 90% of the property’s value on eligible programs
- Credit score: Minimum 640 FICO on eligible programs
- Personal statement income: 100% of eligible deposits used in the income analysis
- Business statement income: Up to 80% of eligible deposits used, subject to expenses and ownership
- Tax-return documentation: No tax returns or IRS Form 4506 required for bank statement income qualification
- Profit and loss statements: Not required on most bank statement programs
- Mortgage insurance: No mortgage insurance across our bank statement programs
- Prepayment penalty: No prepayment penalty across our bank statement programs
- Loan terms: 5/1 and 7/1 adjustable-rate options or 30- to 40-year fixed terms, depending on program
- Rate buydowns: Available with some programs; compare cost and terms with your officer
- Business ownership: Borrowers do not have to be 100% owners; ownership adjustments may apply
- Multiple accounts: Permitted on some programs, with transfers reviewed to avoid double-counting
- Property types: Single-family homes, condos, townhomes and 2–4 unit properties; non-warrantable condo options available
- Occupancy: Primary residences, second homes and investment properties, subject to program limits
- Financing purposes: Purchase, rate-term refinance and cash-out refinance
- Self-employment: At least 2 years of self-employment history required
- Past credit events: Bankruptcy, foreclosure or short sale may be considered from 2 years after the event, subject to program-specific timing and review
- NSFs and overdrafts: Reviewed in context by underwriting; acceptance is not automatic
How your credit score affects your down payment
The chart below is a separate example from the supplied Elite/Elite Plus bank statement matrix for a primary residence purchase up to $1,500,000, using 12 or 24 months of statements. It is not a combined five-underwriter chart and does not describe the $5,000,000 maximum. Other loan amounts, property types and underwriters may have different limits.
| 720+ FICO | Up to 90% LTV · 10% minimum down payment |
|---|---|
| 700–719 FICO | Up to 85% LTV · 15% minimum down payment |
| 680–699 FICO | Up to 85% LTV · 15% minimum down payment |
| 660–679 FICO | Up to 80% LTV · 20% minimum down payment |
| 640–659 FICO | Up to 80% LTV · 20% minimum down payment |
LTV means loan-to-value: the loan amount as a percentage of the property’s value. For example, 90% purchase LTV corresponds to a 10% down payment, before closing costs. This chart is an illustration, not an approval.
UNDERSTAND THE PROGRAM
How Underwriters Review Your File
The expense table and detailed property limits below come from the supplied underwriter matrices, not all five programs. Your officer will confirm which requirements apply to your scenario.
Other ways to document self-employed income
A P&L or 1099 income loan is a separate documentation option, not an extra document automatically required for a bank statement loan. Most of our bank statement programs do not require a P&L. A loan officer can compare the appropriate path for your business.
- Personal or business bank statements: 12 or 24 months of statements averaged to calculate monthly income.
- Profit and loss statement: Net income from a P&L prepared by a CPA, EA or CTEC, divided by 12 or 24 months.
- 12-month 1099 income: The 1099 average less a 10% expense factor or a tax professional's expense letter.
- Expense factor letter: A CPA, EA or CTEC can document your actual business expense percentage (minimum 10%).
How deposits are counted
Underwriters average your eligible deposits. Transfers between your own accounts, loans, refunds and large or inconsistent deposits that are not normal business income are excluded, and you may be asked to explain unusual deposits. Personal bank statements use 100% of eligible deposits.
Business expense factor without a CPA letter
Business bank statement income is reduced by a fixed expense factor based on your type of business and number of employees or contractors.
| Service business, no employees | 20% expense factor |
|---|---|
| Service business, 1–9 employees | 40% expense factor |
| Service business, 10+ employees | 50% expense factor |
| Capital-intensive business, no employees | 60% expense factor |
| Capital-intensive business, 1–9 employees | 70% expense factor |
| Capital-intensive business, 10+ employees | 80% expense factor |
Eligible and ineligible properties
- Eligible: Single-family homes, townhomes, warrantable and non-warrantable condos, 2–4 unit properties, modular homes and rural properties (up to 80% LTV purchase).
- Not eligible: Condotels, agricultural properties and properties larger than 10 acres.
Co-borrower income can help complete the picture
A co-borrower does not have to be self-employed. Eligible W-2 employment, retirement, rental, Social Security and pension income may be considered alongside the self-employed borrower’s bank statement income. Those income sources still need the documentation required by the selected program.
Who can apply
- U.S. citizens: Eligible across bank statement programs.
- Permanent resident aliens: Eligible with a valid green card.
- Non-permanent residents: Eligibility varies by underwriter and program.
- Self-employment: At least 2 years of self-employment history.
Guidelines vary by underwriter and can change without notice.
PREPARE FOR A PRODUCTIVE REVIEW
Requirements and your document checklist
Two years of self-employment history is required. Specific credit, down payment and loan-size requirements vary by program and the overall file; no single threshold applies to every borrower.
- Complete bank statements: All pages for the full 12- or 24-month review period, including accounts used to document income.
- Self-employment evidence: Business ownership and operating history, using documents accepted by the selected program.
- Deposit explanations: Supporting information for large, unusual or unclear deposits and transfers when requested.
- Business expense support: A CPA letter, expense calculation or P&L if required or accepted by the program.
- Closing funds: Statements showing the source of your down payment and closing funds.
- Application and property details: Identification, credit authorization, debts and purchase contract or refinance information as applicable.
Your officer will provide a scenario-specific checklist. Do not send bank statements, identification or sensitive documents through ordinary email; use the secure upload link your officer provides.
FINANCING PURPOSES
Buy a property or review your existing mortgage
Purchase
Explore home financing using bank statement income when traditional tax-return qualification does not reflect your cash flow.
Refinance
Review an existing mortgage with an alternative-documentation income approach, subject to available programs.
Cash-Out Refinance
Evaluate access to eligible property equity. Equity, credit, occupancy and program restrictions determine what is available.
WHY BORROWERS CHOOSE IT
Bank Statement Loan Key Benefits
- A different income picture: Eligible deposits can support qualification when legitimate tax deductions reduce taxable income.
- Personal or business statements: Review the account where your income is deposited, subject to the selected program’s documentation and expense requirements.
- A choice of review periods: 12 or 24 months may help present your business performance appropriately.
- Guidance for your scenario: A licensed loan officer can help you compare available documentation options and prepare a complete file.
A BALANCED VIEW
Pros and Cons of Bank Statement Loans
Bank statement financing can be helpful when deposits tell a different story from taxable income, but it is not the right fit for every borrower.
Pros
- Alternative income documentation: Eligible deposits can support income qualification rather than relying on traditional tax-return income documentation.
- Flexible review periods: A recent 12-month history or a broader 24-month history can help underwriting understand business performance and seasonal variation.
- Account options: Personal or business statements may be considered under the selected program.
Cons and considerations
- Terms may differ: Pricing and down payment requirements may differ from conventional financing. Compare all available options before deciding.
- Complete documentation is still required: Provide all statements for the selected period, evidence of business history and other supporting information requested by underwriting.
- Not every deposit qualifies: Internal transfers and non-income funds may be excluded. Large or unusual deposits and declining revenue can require further review.
- Expenses can reduce qualifying income: Business expenses and ownership adjustments can reduce qualifying income below gross deposits. The estimator does not determine approval.
YOUR NEXT STEPS
From an initial conversation to a complete loan review
- 1.
Discuss your scenario
Tell a licensed loan officer about your business, property goals and statement history.
- 2.
Compare available programs
Review the documentation period and compare bank statement financing with any appropriate conventional or other self-employed options.
- 3.
Submit your application and documents securely
Use the officer’s application and upload links. Provide complete statements and any requested supporting information.
- 4.
Complete underwriting and property review
Address conditions and review final loan terms. Approval and closing depend on the completed file, not the estimator result.
Work with an Orlando-based direct mortgage lender
1st Florida Lending Corp. helps self-employed borrowers evaluate financing options based on their income documentation and property goals. Our experienced loan officers work hands-on with self-employed borrowers, reviewing statement history, expenses, ownership and unusual deposits. We compare multiple wholesale-underwriter options rather than assuming one program fits every business. Our team can review whether a bank statement program fits your scenario or whether another documentation path is more appropriate.
- A dedicated conversation with a licensed loan officer
- Review of personal or business statement options
- Guidance on a scenario-specific document checklist
- Comparison with other self-employed loan programs
Let’s review your bank statement loan options
Share your property goals and business income situation with a licensed loan officer. No sensitive documents are needed for the initial request.
Bank Statement Loan FAQs
Disclaimer
This page is educational and does not constitute a loan commitment or offer of credit. The estimator is illustrative only and does not establish qualifying income, loan eligibility or final terms. Bank statement and other Non-QM guidelines vary by program. All loans are subject to credit approval, income verification and property qualification. Programs and terms are subject to change without notice. Equal Housing Lender.