Bank statement income averages 12–24 months of deposits, then applies a personal factor or business expense factor. See the Non-QM calc.
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Bank Statement Loans
How Is Bank Statement Income Calculated?
Qualifying income comes from averaging eligible deposits over 12 or 24 months — then applying a personal deposit factor or business expense factor. Here is the math lenders use on Non-QM files.
Four steps from raw statements to monthly qualifying income.
Which factor you use depends on the account type — and it changes usable income.
Personal statements
Personal programs often count a high share of eligible deposits — sometimes 50–100% depending on the investor. Owner draws that land in personal checking can be the income event.
Business statements
Business programs typically assume operating costs via an expense factor (often ~50%) or accept a CPA letter. Ownership percentage adjusts the result on multi-owner entities.
Factors and expense assumptions vary by investor. We run both paths when your accounts support it.
NSF fees, unexplained large deposits, and gaps between statement periods force underwriters to exclude months or request letters of explanation — which can shrink average deposits.
Mixing personal spending through a business account (or vice versa) also creates noise. Cleaner accounts usually produce cleaner — and higher — qualifying income.
Before you write an offer, Ryan & Steve walk your deposit history so the calculated number supports the purchase price.
Quick example (illustrative)
— $360,000 eligible deposits over 12 months
— ÷ 12 = $30,000 average monthly deposits
— × 50% business expense factor = $15,000/mo qualifying
— × 100% ownership = $15,000 used for DTI
Example only — your factor, lookback, and exclusions will differ by program.
Related bank statement guides and Non-QM resources from Ryan & Steve.
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Ryan & Steve run the income calc on your actual statements — so you know what qualifies before you write an offer.