5% Down Florida Bank Statement Mortgage Lenders

Bank Statement Only Mortgage Programs Include:

• 3 months bank statements are used to average income.
• 12 months banks statements used to average income.
• 24 months business bank statement used to average income.

Calculating Income Bank Statement Florida Mortgage

On the 24-month Florida bank statement mortgage program, the lower of the 24-month or last 12-month average, less an expense factor, will be used for qualifying purposes. On the 12-month program, the average deposit less an expense factor will be used for qualifying purposes. The Florida bank statement mortgage will have an expense factor applied to the deposits used for calculating income. The expense factors available will be: 90%, 70%, 50%, 30%, or 15%. An analysis of the business will determine the factors used based on the activity shown in the bank statements and an analysis of the Business Analysis Questionnaire. Examples of each category are listed below. These are only examples, and the Florida Bank Statement Mortgage Lenders underwriter will determine the final expense ratio based on the review of the business. 

Self-Employed Bank Statement  Mortgage Lenders Questionnaire

Bank Statement Mortgage Lenders Questionnaire

Florida Bank Statement Mortgage Expense Ratio 

• 90% expense factor characteristics.
o Unlimited employees.
o Multiple physical locations
o High inventory (New car dealerships, Restaurants, New home builders, Retail foot traffic stores)

• 70% expense factor characteristics
o Up to 25 employees.
o Physical location
o Medium inventory requirements (Home improvement, Trucking Company, Gas stations, Beauty salons)

• 50% expense factor characteristics
o Work from home or with limited facilities.
o Minimal employee count (Up to 15)
o Service provider with limited inventory or inventory by consignment (Landscaper, Appliance repair, Contract doctors, Art dealer, Independent truck driver)

• 30% expense factor characteristics
o Work from home with no inventory and some travel expenses
o Limited Employees (up to 5)
o Service provider (Consultant, Accountant, Event planner, Internet “pass-through” company, Sales/Distributor)

• 15% expense factor characteristics
o Work from home with no inventory and minimal travel
o All work may be conducted by a computer or over the phone
o No Employees
o Limited Service provider (Authors/Writers, Virtual Assistant, Online Instructor)

Note: These examples are meant to be used as a guide and are subject to change. Each company will be reviewed individually.

Bank Statement Florida Mortgage Lenders: 

Florida NON-QM mortgage lenders allow 12/24 months of personal or business bank statements to calculate income without requiring tax returns. This program is available for purchase, cash-out refinance, or rate-term refinances. Whether you’re self-employed, a business owner, freelancer, contractor, or gig worker, we can help you qualify for a Florida mortgage using bank statements for income.

Low Down Payment – Florida Bank Statement Florida Mortgages:

• 5% Down Payment Options – 4-6 months reserves + possible seller-paid closing costs
• Min 580 credit score with proof of rental history and no late payments in 12+ months.
• No other documents like W2s, tax transcripts, or years of financial history.
• Fewer documents make it easier for self-employed and business owners to qualify.
• A better option than claiming too much income on your tax returns.
• No Need to Amend Your Taxes! Instead, average 12/24 months deposits for income.

Florida Bank Statement Mortgage Alternatives

Flexible Bank Statement Mortgage Lenders

• Underwriters focus and simpler documentation.
• Easier for non-traditional self-employed individuals to use more qualifying Income!
• Ideal for self-employed, Contractors, Gig workers, and Entrepreneurs.
• Traditional mortgage lenders analyze pages and pages of tax returns, looking for red flags.

12 or 24 Months Bank Statements with Co Self-Employed W2 Income

Use the most recent 2 years’ W2 income plus your most recent 12 or 24-month business or personal bank statement average deposits to qualify for your next Florida Mortgage!

Personal Or Business Bank Statements – OK

If the money deposited into your account came from a business account, you can use 100% of the deposits. If the money came directly from sales before any expenses, the lender will assign an expense ratio to your business depending on the industry you work in.

Bank Statement Florida Mortgage lenders NSF

Excessive NSFs on the bank statements – Let us know at times we have had lenders that disregard. 
The bank statements should show a trend of ending balances that are stable over the 12-or 24- or 24-month period.
 Large deposits inconsistent with history must be documented as business income.
 Net deposits must not reflect any other income sources already taken into consideration (i.e., deduct SS payments,
W-2 wage earnings, etc., that have already been used for income calculation.
When the self-employed is an inter vivos trust, personal bank statements in the name of the trust and a copy of the trust are allowed for qualification for all bank statement programs.
4506-C, tax transcripts, and/or tax returns are not required for all bank statement programs.
Self-Employed – Personal and Business bank Statement combined:
If personal and business bank activity is combined in one bank account, the Self-Employed is to provide the most recent 24- or 12-month consecutive bank statements from the same account.
o Standard expense factor applies; 50% expense factor.
o If the type of business operates more efficiently or typically has a materially different expense factor (lower than the standard expense factor), then the expense factor per either a CPA/CTEC/EA letter or P&L may be applied.
o The underwriter may use an expense factor higher than the standard 50% when the analysis of the bank statements reflects higher expenses.
o The minimum expense factor with a CPA letter or P&L is 10%.
 When a CPA or tax preparer-produced statement is provided, apply the stated expense factor to calculate the qualifying income (subject to the minimum expense factors). Provide either of the following:
 A CPA/CTEC/EA produced a written statement/letter specifying the actual expense ratio of the business (including cost of goods sold and all other business expenses) based on the most recent year’s filed tax returns. Such statement shall not include unacceptable disclaimer or exculpatory language regarding its preparation; or,
 A CPA/CTEC/EA produced a P&L statement that has been reviewed by the CPA/CTEC/EA. The CPA/CTEC/EA states they have reviewed the P&L in writing, and the P&L and accompanying statement do not have an unacceptable disclaimer or exculpatory language regarding their preparation.
 The expense factor per the P&L or CPA/CTEC/EA produced statement must be reasonable. The annual deposits on the bank statements must be at least 75% of the gross receipts per the P&L.

Self-Employed Personal and Business Bank Statements:

•  If the Self-employed maintains separate bank accounts for personal and business, only personal bank statements are used for qualifying.
•  The Self-Employed is to provide the most recent 24 or 12 months consecutive personal bank statements and 2 months business bank statements (to support the Self-Employed does maintain separate accounts, and to show business cash flows to utilize 100% of business-related deposits in a personal account).
•  The deposits are analyzed and averaged to determine monthly income.
•  No expense factors
•  Deposits to a personal account from sources other than self-employment are not to be included.

Business Bank Statement Only:

o Business bank statements must be operating account(s) reflecting normal business expenses.
o If only using business bank statements, Self-Employed is to provide the most recent 12- or 24-month consecutive business bank statements. Standard expense factor applies; 50% expense factor.
o If the type of business operates more efficiently or typically has a materially different expense factor (lower than 50%), then the expense factor per either a CPA/CTEC/EA letter or P&L may be applied.
o The underwriter may use an expense factor higher than the standard 50% when the analysis of the bank statements reflects higher expenses.
o The minimum expense factor with a CPA letter or P&L is 20%.
 When a CPA or tax preparer-produced statement is provided, apply the stated expense factor to calculate the qualifying income. Provide either of the following:
 A CPA/CTEC/EA produced a written statement specifying the actual expense ratio of the business
(including cost of goods sold and all other business expenses) based on the most recent year filed
tax returns. Such a statement shall not include an unacceptable disclaimer or exculpatory language
regarding its preparation; or,
 A CPA/CTEC/EA produced P&L statement that has been reviewed by the CPA/CTEC/EA, the
CPA/CTEC/EA states they have reviewed the P&L in writing, and the P&L and the accompanying 
statement does not have an unacceptable disclaimer or exculpatory language regarding its preparation.
 The expense factor per the P&L or CPA/CTEC/EA produced statement must be reasonable. The annual
Deposits on the bank statements must be at least 75% of the gross receipts per the P&L.

Florida Self-Employed Contractor 1099 Income:

o A self-employed individual who is a “1099 contractor” may be considered self-employed for this program with confirmation from a CPA that the self-employed individual is a 1099 contractor and files Schedule C or Schedule E with the IRS (personal tax returns).
Self-employed s cannot have ownership of a 1099 Payor’s business.
o Most recent one (1) year IRS Form 1099(s) from employer(s). The self-employed must have a 2-year history of 1099 employment.
o Current paystub or bank statement deposit for each 1099 source utilized for qualification (e.g., Self-Employed provided 1099 forms from five (5) separate sources, then a separate paystub/bank statement deposit must be provided from each of the five (5) 1099 sources to support the current receipt).
o Third party documentation (CPA/CTEC/EA) supporting a 2-year employment history when 1-year 1099 used.
o Total 1099 income (-) 10% expense factor / 12 months = Qualifying Income
o 1099 Income that is not supported by documentation of current receipt cannot be used for qualification.
o Signed 4506-C and tax transcripts are required. Profit and Loss (P&L) Program:
o At least one of the Self Employed s must be self-employed for at least 2 years (25% or greater ownership) to qualify for this program.
o 4506-C, tax transcripts and/or tax returns are not required for the P&L program.
o The minimum expense factor with a P&L is 20% for the service business, 40% for the product business.
 Service Business: Offer services such as Accounting, Consulting, Counseling, Financial Planning, Insurance, and Therapy. The minimum expense factor with a P&L is 10%.
 Product Business: Sell goods such as Contracting or Construction, Food Services, Manufacturing, Restaurants, and Retail. The minimum expense factor with a P&L is TBD%.
o 2 2-year active business license is required unless a W2 for the same line of work is provided.
o A signed letter from the CPA, CTEC, or EA on their business letterhead showing the address, phone number, and license number is required with the following information:
 CPA/CTEC/EA confirms they have prepared the most recent 2 years of business tax return filing; and,
 The business name, the Self-Employed’s name, and the percentage of business ownership by the Self-Employed.
o CPA/CTEC/EA signed/prepared Profit and Loss Statement(s) covering the most recent 12-month period.
o A gap P&L covering the period between the end of the 12-month P&L and the application required when the gap is greater than three
(3) months.
o Income from co-Self Employed s who are W2 wage earners is to be documented with the most recent W2 and paystub.