Mortgage Navigator • Non-QM Underwriting
Bank Statement Income Calculation
Deposits are the starting point—not automatically the qualifying income.
Typical workflow
An underwriter may identify eligible business-related deposits, remove transfers and non-income items, analyze recurring activity, and then apply the program’s permitted expense methodology. The resulting qualifying income can differ dramatically between investors.
Do not double count
Transfers between accounts, loan proceeds, tax refunds, asset-sale proceeds and other non-business-income deposits may need to be excluded. The actual investor definition controls.
Investor matrix, not a universal Non-QM rule. Bank-statement calculations, expense factors, DSCR formulas, asset haircuts, credit-event seasoning, LTV, reserves and documentation can vary materially by investor and lender. MortgageDadOf3 separates the concept from the actual program matrix so a lender overlay is not mistaken for an industry-wide rule.
Consumer-purpose loans still require the applicable consumer-protection analysis. For covered transactions, Regulation Z’s Ability-to-Repay framework generally requires a reasonable, good-faith determination of repayment ability. Alternative documentation is not the same thing as “no documentation.”
Consumer-protection references
CFPB / Regulation Z §1026.43 Ability-to-Repay · CFPB Qualified Mortgage explanation · IRS IVES transcript information