Bank statement Non-QM uses expense factors and deposit exclusions—not Schedule C write-offs. See what lenders deduct from business deposits.
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Bank Statement Loans
What Expenses Are Deducted?
Underwriters do not rebuild your tax return. They exclude non-revenue deposits, then apply a program expense factor — or a CPA-supported ratio — so business deposits become realistic net income for DTI.
What gets removed before the average, and what the expense factor assumes afterward.
Common non-revenue credits Indiana underwriters remove from bank statement averages.
Expense factors and exclusion lists vary by investor. We confirm the matched program before you apply.
Ryan & Steve scrub statements for exclusions first, then compare personal vs. business paths — and whether a CPA letter beats the default expense factor.
Ownership percentage multiplies business income. Multi-owner LLCs need clear docs so you are not under-credited for your share.
The cleaner the deposit trail, the less underwriting argues about what “counts” — which speeds pre-approval for self-employed Indiana borrowers.
Income-calc prep list
— Full consecutive statement PDFs (all pages)
— Note large one-time deposits and transfers
— Ownership % docs for business accounts
— CPA letter or P&L if margins beat the default factor
Related bank statement guides and Non-QM resources from Ryan & Steve.
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Ryan & Steve will scrub deposits, apply the right factor, and tell you if a CPA letter unlocks more income — before you apply.