Bank Statement Jumbo
Jumbo financing for self-employed Arizona borrowers whose tax returns understate real cash flow. 12 or 24 months of bank deposits replace the tax return as the income document, up to $3M loan.
Quick answer
- Income source: 12 or 24 months of personal or business bank deposits.
- Tax returns? Not used.
- Loan amount: typically up to $3M.
- Max LTV: 85% on most programs (some to 90% under $1.5M with strong FICO).
- Min FICO: 660; 700+ for higher LTV.
- Reserves: 6–9 months PITIA depending on loan amount.
- Property: primary, second home, 1–2 unit.
How underwriting reads your deposits
Two flavors. Your loan officer picks based on which set tells the cleaner story:
Personal bank statements (12 or 24 months)
- Underwriter sums qualifying deposits across the months.
- Excludes obvious non-business inflows: tax refunds, interfund transfers, gifts, asset sales.
- Average monthly qualifying income = total ÷ months.
- No expense haircut, used directly as income.
Business bank statements (12 or 24 months)
- Underwriter applies an expense factor (default ~50%) to back out cost-of-business.
- Lower expense factors (20–35%) accepted with a CPA letter documenting actual overhead.
- Lower expense factor → higher qualifying income → larger loan size.
When to use which
- Personal statements: if owner draws move to a personal account regularly.
- Business statements: for higher-margin businesses (consulting, professional services, online) with a CPA letter, usually produces highest qualifying income.
Worked example — $2M Scottsdale purchase
Self-employed digital agency owner. Tax return shows ~$140K net after deductions. Real cash flow into business checking averages ~$70K/mo over the last 24 months. CPA confirms 22% true expense ratio.
| Method | Monthly qualifying income | Result |
|---|---|---|
| Full Doc (Schedule C) | $11,667 | DTI too high for $2M loan |
| Business statements @ 50% factor | $35,000 | Easily qualifies for $2M |
| Business statements @ 25% factor (CPA) | $52,500 | Higher cushion, better tier |
Illustrative only.
FAQ
How is this different from stated income?
It's not. Stated income loans were eliminated post-2008. Bank Statement Jumbo fully documents real deposits over 12 or 24 months, just without using the tax return.
Can I do this with $3M loan amount?
Yes, on most programs, usually with 700+ FICO, 80%-or-lower LTV, and 9–12 months reserves.
Personal or business statements, what's the right pick?
Depends on which account holds your real cash flow. We model both before picking.
Do I need a CPA?
Not strictly. A business license + ownership documentation is the minimum. A CPA letter helps lower the business-statement expense factor, meaningful when it pushes you into a better LTV tier.
Are second homes and Paradise Valley properties eligible?
Yes, bank statement jumbo is widely available for primary and second homes statewide in Arizona.
Curious if Bank Statement Jumbo is the right fit?
Bring your numbers, we'll model real pricing in 20 minutes.