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Non-QMIf you run a business, take 1099 income, or write off enough that last year’s 1040 does not look like the cash that actually hits the account, a 12-month bank-statement file is often the honest underwrite — deposits, not a forced W-2 story. This is Non-QM. It is not Fannie Mae, Freddie Mac, FHA, VA, or USDA. Guidelines vary by investor. We confirm them on your file with a licensed loan officer.
Non-QM means investor-dependent. Credit floors, loan-to-value, reserves, and property rules are set by the investor buying the loan and change without notice. Nothing on this page is a guideline, a rate, or a commitment to lend; availability depends on licensing in the property state and the overlay on your file.
A 12-month bank statement loan is a Non-QM (non-agency) mortgage that uses a stretch of recent deposits — usually twelve months of personal or business statements — to support ability to repay when tax returns are a poor picture of cash flow. That is common for S-corps, LLCs, Schedule C filers, and 1099 contractors who legally write off expenses that shrink adjusted gross income.
It is not a government-insured product. Fannie Mae, Freddie Mac, FHA, VA, and USDA generally want tax-return or W-2 income. Bank-statement underwriting sits outside those agencies. Each investor publishes its own calculation, look-back, and overlays. We will not print a credit floor, LTV grid, reserve month count, or rate on this page because those figures are investor-dependent and change.
Non-QM is not the same as “no documentation.” Credit is still pulled. Assets used to close are still sourced. The property is still appraised. Qualified Mortgage (QM) status is a legal determination on the file — this page is not that determination. Talk with a licensed loan officer before you write an offer around this product.
The typical caller already knows the tax return will not carry a conventional automated finding. Revenue is real. The 1040 is conservative by design. Forcing that file through Fannie or FHA often means a decline, a shrunk qualifying income, or a smaller loan than the business can actually support.
A conventional or FHA file starts with the tax return, W-2, and paystub, then asks automated underwriting (DU/LP) whether the ratios work. A bank-statement file starts with deposits. An analyst (and the investor overlay) decides which deposits count, which are transfers between your own accounts, which look like cash that cannot be used, and how to annualize what remains. That number becomes qualifying income for that investor — not a HUD or Fannie worksheet.
Credit, occupancy, property type, and assets still matter. You are not skipping underwriting. You are changing the income method. Debt-to-income is still calculated; the numerator and denominator simply come from a different income engine. Overlays on score, LTV, and reserves are often tighter than a baseline conforming purchase. How tight is investor-dependent. We confirm on the file.
This is not the old “stated income / stated asset” product from the mid-2000s. Investors expect complete statements, a method for excluding NSF patterns and unexplained deposits, and a full credit and collateral underwrite. If a website promises approval from a selfie and a credit score, that is not this.
Investors generally split the product into personal-account analysis and business-account analysis. Which path you use depends on where the revenue actually lands and how the entity is set up — not on which PDF is easier to upload.
Twelve months is the focus of this page because it is the most common ask we see for a self-employed borrower who already has a going concern. A 24-month look-back is a variant, not a different product family. Investors may want the longer sample when the business is younger, deposits swing hard month to month, there is a recent entity change, or the overlay simply prefers two years of history the way a tax-return file prefers two 1040s.
This is a high-level checklist, not a complete underwriting list and not a promise that any one PDF will clear a condition.
Do not email full statements to a marketing address. Use Blend for the Uniform Residential Loan Application, or bring documents after a licensed officer tells you which portal to use. The call-back form on this page is name, email, phone, and purpose only.
If a conventional or FHA file qualifies on the tax returns, it is often the cheaper, more standard path — cancellable PMI on many conventional files, or FHA’s 3.5% down structure for owner-occupants. Bank statement exists because those paths sometimes do not describe the borrower. Pricing and fees on Non-QM are typically higher than a baseline conforming note. How much higher is a quote on a live file, not a table on a blog.
Self-employed density in the Philadelphia suburbs, the Lehigh Valley, and North Jersey is exactly why this product shows up in our pipeline: contractors, medical practices, agencies, restaurants, and 1099 professionals whose 1040 is a tax document, not a cash-flow document. Closing customs still follow the state. Licensing still has to match the property state — confirm the loan officer on NMLS Consumer Access.
Figures that change each year live at the source, not on this page.
No. Stated-income products of the mid-2000s asked you to declare income with little or no deposit analysis. A bank-statement file reviews actual statements, typically twelve months (sometimes twenty-four), and still underwrites credit, assets, and the property. It is Non-QM, not “no docs.”
Whichever account actually receives the business revenue — and whichever path the investor will accept for that entity. Personal and business analyses are calculated differently. Mixing months or omitting pages delays the file. We will map the accounts on your file rather than guessing from this page.
When the overlay or the history calls for a longer sample: newer business, lumpy deposits, an entity change, or an investor that simply prefers two years. 24 months is a variant of the same product family. This page’s focus remains 12-month bank statement.
We will not publish a score floor, LTV grid, or reserve month count here. Those items are investor-dependent and change. A licensed officer will run the overlay that actually applies. This is not a commitment to lend.
Often that is the use case — a self-employed owner-occupant whose tax returns understate cash flow. Occupancy, property type, and whether the investor allows the state and county are confirmed on the file. Use Pennsylvania or New Jersey for closing-custom context, not for a Non-QM approval.
If the property is an investment / rental and you want the underwrite to follow rent versus PITIA rather than your personal deposits, start with DSCR loans. Bank statement is about the borrower’s business cash flow. DSCR is about the property’s.
No. Nothing on this page is a rate, a lock, a pre-approval, or a guarantee. Non-QM availability is subject to investor guidelines, overlays, property eligibility, and licensing. Apply on Blend or call the office.
Written by Steve Umansky, Sr. Branch Manager, NMLS #61764. Last reviewed 2026-09-15. Program parameters are subject to change and to the guidelines in effect at application. Not a commitment to lend.
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