By Mike Basti, President and Mortgage Broker · NMLS #322904 · Updated You send 24 consecutive months of statements. The lender removes deposits that aren't income, averages the rest over 24 months, and applies an expense factor (commonly 50%) to business statements. Personal statements usually count at or near 100%. The longer history can earn slightly better pricing or a higher loan-to-value. Typical terms: 640+ credit, 10% down with 700+ credit, 20–25% down on investment property, loans up to $3 million. It fits best when income is steady, seasonal, or had a recent dip.
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How the 24-month calculation works
It's the same method as a 12-month loan with a longer window. The underwriter reads 24 consecutive monthly statements, removes anything that isn't earned income (transfers between your accounts, loan proceeds, refunds, gifts, one-time sales), totals the rest and divides by 24. Business accounts then get an expense factor.
The underwriter also compares the two years. If year two is clearly lower than year one, many lenders will use the lower recent figure instead of the full 24-month average. A longer window smooths out bumps; it doesn't hide a decline.
24 vs 12 months: which gives you more income?
| 24-month program | 12-month program | |
|---|---|---|
| Statements needed | 24 consecutive months | 12 consecutive months |
| Best when | Income is steady, seasonal, or had a temporary dip | Income grew in the last year |
| Pricing | Can earn slightly better pricing | Can carry a small adjustment at some lenders |
| Max loan-to-value | Sometimes a little higher | Sometimes a little lower |
| Paperwork | More statements and more deposits to explain | Half the statements |
| Time in business | Usually 2 years either way | |
We run both windows before you choose. The full comparison is in our 12 vs. 24 month guide.
Personal vs business accounts on a 24-month loan
| Personal statements | Business statements | |
|---|---|---|
| How deposits count | Usually 100% of eligible deposits | Deposits minus an expense factor (commonly 50%) |
| Works best when | You've paid yourself a steady draw for two years | You leave most money in the business |
| Can you lower the haircut? | No haircut to lower | Yes, with a CPA letter or a low-overhead business |
| Watch for | Personal spending mixed into the account | A change of bank or account during the 24 months |
If you switched banks or opened a new business account during the two years, send both accounts so the 24 months are continuous. More detail: personal vs business bank statement loans.
Credit, down payment and loan limits
| Credit score | Typical minimum down (primary home) | Pricing |
|---|---|---|
| 700+ | 10% | Best tiers |
| 660–699 | 15% | Strong |
| 640–659 | 20% | Program-dependent |
| Item | Typical range (October 2026) |
|---|---|
| Minimum credit score | 640; pricing improves at 660 and again at 700+ |
| Down payment, primary home | 10% with ~700+ credit; 15–20% with lower scores or larger loans |
| Down payment, investment property | 20–25% |
| Cash-out refinance | Up to about 75% loan-to-value |
| Loan amount | Up to $3,000,000 ($5,000,000 by exception) |
| Reserves | Often 3–6 months of payments, more on larger loans |
| Debt-to-income | Up to ~45%, some programs to 50% with conditions |
| Mortgage insurance | None at any loan-to-value |
| Property types | Primary, second home, 1–4 unit investment |
On strong 24-month files, some programs go up to 90% loan-to-value on a primary purchase and accept expense factors as low as 15% with qualifying third-party documentation. See the requirements page for edge cases.
Who a 24-month bank statement loan fits, and who it doesn't
- Good fit: seasonal businesses such as contractors, pool and landscape companies, tax preparers, event and wedding vendors.
- Good fit: a slow quarter or time off in the last year, followed by a recovery.
- Good fit: steady income where you want the best available pricing or loan-to-value.
- Consider 12 months: your income clearly grew this year, so the older year drags the average down.
- Consider other programs: a P&L loan if your CPA's books show more income than your deposits, or a DSCR loan for a rental that covers its own payment.
24-month bank statement loan FAQs
What is a 24-month bank statement loan?
A 24-month bank statement loan is a non-QM mortgage that qualifies self-employed borrowers on the average of their last 24 months of personal or business bank deposits instead of tax returns or W-2s. It follows the federal Ability-to-Repay rule and normal credit, asset and appraisal standards.
Is 24 months of bank statements better than 12?
It depends on your income pattern. Twenty-four months is usually better when income is steady or seasonal, or when the last year had a temporary dip, and it can earn slightly better pricing or a higher loan-to-value. Twelve months is better when income grew in the last year. We calculate both before you choose.
How is income calculated on a 24-month bank statement loan?
The lender removes deposits that are not income, adds up the rest over 24 months and divides by 24. Business-account deposits then get an expense factor, commonly 50%, while personal-account deposits are usually counted at 100%. If the most recent year is clearly lower, many underwriters use the lower figure.
Does a 24-month bank statement loan get a better rate?
Often slightly. Many lenders price a 24-month program a little better than a 12-month program, or allow a slightly higher loan-to-value, because the longer history shows more consistency. The difference varies by lender, so we price both.
What credit score do I need for a 24-month bank statement loan?
Most programs start at 640. Pricing improves at 660 and again at 700 and above, and around 700+ is usually what allows 10% down on a primary home.
How much down payment does a 24-month bank statement loan need?
Typically 10% on a primary home with credit around 700 or higher, 15–20% with lower scores or larger loans, and 20–25% on an investment property. Cash-out refinances generally go up to about 75% loan-to-value.
What is the maximum loan amount?
Save Financial arranges 24-month bank statement loans up to $3 million, and up to $5 million by exception on strong files.
What if I changed banks during the 24 months?
That's fine. Send statements from both accounts so the 24 months are continuous, and show the transfer when the old account closed. Transfers between your own accounts are removed, so they won't be counted twice.
Do I need tax returns for a 24-month bank statement loan?
No. Deposits document your income. Some lenders have you sign IRS Form 4506-C as a standard fraud check, and most want a CPA or tax-preparer letter confirming you are self-employed, but returns are not used to calculate income.
How long does a 24-month bank statement loan take to close?
About 21 days on average from a full application when the statements are complete, and 30 days on most files. Twenty-four months means more deposits to source, so we review large deposits at the start.
Terms shown are typical ranges as of October 2026 and vary by lender, credit, down payment and property. Reviewed by Mike Basti at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.