Bank Statement Investor
When DSCR doesn't fit and conventional reads tax-return income too thinly. Bank Statement Investor uses your real cash flow — 12 or 24 months of deposits — to qualify a non-owner-occupied investor purchase.
Quick answer
- Income source: 12 or 24 months of personal or business bank deposits.
- Tax returns? Not used.
- Best for: self-employed investors who also have alt-doc personal income, on properties where DSCR alone wouldn't qualify (e.g., DSCR < 1.0).
- Loan amount: typically up to $3M.
- Max LTV: 80% purchase on most programs.
- Min FICO: 660.
- Property: investor 1–4 unit, sometimes 5–10.
Why this exists alongside DSCR
DSCR works when the property cash-flows on its own. But sometimes the property has weak DSCR (well-located but low-rent-to-payment ratio in an appreciating market) and you need your income to bridge the gap. Bank Statement Investor lets a self-employed investor qualify on real cash flow — instead of getting forced into either the DSCR-only path (where the file might fail) or the conventional path (where heavy tax write-offs sink qualifying income).
How underwriting reads it
- 12 or 24 months of business or personal bank deposits.
- Business statements: 50% expense factor default; lower with CPA letter.
- Personal statements: no expense haircut.
- That figure becomes your qualifying income — used in standard DTI math against the new property's payment.
When to pick this over DSCR
- Property's DSCR is below 1.0 but appreciation potential is strong — you want to buy it anyway and qualify on your income.
- Property is in a city with rent-control rules that depress current rent but you expect to operate on a different model (mid-term rental, traveling-nurse housing, etc.).
- Property is owner-occupied / mixed-use and DSCR doesn't fit.
- You're self-employed and tax returns understate real cash flow — DSCR may work but Bank Statement opens up programs DSCR can't reach.
FAQ
Is this just DSCR with extra documentation?
No — it's a different product. DSCR uses property cash flow only; Bank Statement Investor uses your personal cash flow to qualify a non-owner-occupied investor purchase. Different underwriting, different DTI math, different programs.
Can I close in an LLC?
Some Bank Statement Investor programs allow LLC closing. Verify per program — DSCR is more universally LLC-friendly.
Why not just use DSCR?
If the property's DSCR is comfortably above 1.0, DSCR is usually the cleaner and cheaper path. Bank Statement Investor is the answer when DSCR doesn't fit but the borrower has strong cash flow on the personal side.
What about combining the two?
Some files structure as 'DSCR with bank statement support' — typically when DSCR is borderline. Investor-specific; we model both paths.
Curious if Bank Statement Investor is the right fit?
Bring the property details — we'll model real numbers in 20 minutes.