How Do Lenders Calculate Income From Bank Statements?
Average deposits, expense factors, and what gets excluded — the underwriter math.
Nate Jones · NMLS #304056 · New American Funding
What People Ask
How do lenders calculate income from bank statements?
Lenders add all deposits over 12 or 24 months and divide by the number of months to get a monthly average. Personal bank statements use the full average. Business bank statements typically have a 50% expense factor applied. Account transfers between your own accounts are excluded.
Do transfers between accounts count as income for bank statement loans?
No. Moving money between your own accounts — business to personal for example — is excluded from the deposit average. Lenders only count actual revenue: client payments, invoices, and external income depositing into the account.
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