Mortgage Navigator • Non-QM Underwriting

Personal Bank Statements

When business income is regularly transferred to a personal account, some investors may evaluate the personal deposit pattern.

Eligible deposits

The underwriter still needs to distinguish business-derived income from transfers, gifts, reimbursements, loan proceeds and other non-income deposits.

Program fit

Personal-statement programs can have different history, ownership and business-verification requirements than business-statement programs.

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.”