Bank statement loan requirements: 12-month vs 24-month
Bank statement loan requirements cover credit, down payment, expense factor, reserves, and how deposits are treated. 12-month and 24-month programs are two different credit boxes. Ranges below are market patterns, not a LoanPASS spec.
12-month and 24-month programs are two different credit boxes
A 12-month program takes 12 months of personal or business statements. Credit is often a higher floor than 24-month. Down payment and LTV are often tighter. Price often carries a premium to the 24-month box.
A 24-month program takes 24 months of statements. Credit often has a bit more room. Leverage is often higher. Price is often the cleaner of the two.
Expense factor and reserves are investor-set on both. The factor may differ by program. Do not treat any score or LTV figure as the market. Confirm the grid with the investor.
How income is calculated: eligible deposits, minus an expense factor, into DTI
Collect the statement months the program requires. Identify eligible deposits. Apply the expense factor, or a P&L. Convert the result to monthly income. Run DTI, credit, LTV, and reserves against that income. The controversy is always which deposits count and what factor comes off.
What counts as income
In: recurring operating deposits that match the business.
Out, usually: transfers between own accounts, cash you cannot source, and one-time spikes unless the guideline allows them.
NSFs: count, frequency, and recency are rules. Write them down. Business statements often take a higher expense factor. Personal statements need a clean self-employed story.
There is no agency finding for this. Each investor writes the checklist.
There is no agency box
That is why a configurable AUS matters. The requirements are the product. Encode the 12-month box and the 24-month box as two rule sets. Same engine. Two answers that do not depend on who picked up the file.
Bank statement loan hub
How an AUS underwrites a bank-statement file
Non-QM income documentation
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