Mortgage Navigator • Non-QM Underwriting
Business Bank Statements
Business deposits may demonstrate cash flow, but the business also has expenses.
Ownership matters
The investor may require a minimum ownership percentage and may prorate qualifying income based on ownership. Business type, operating history, commingling and consistency of deposits can matter.
Expense analysis
Programs may use a standard expense factor, a business-specific factor, or documentation from a qualified tax professional or other permitted source. Never assume a single percentage applies to every business.
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