12-Month Bank Statement Program
12-Month Bank Statement Mortgages
Twelve months of statements. One qualifying-income calculation. No tax returns, W-2s, or paystubs. Total Quality Lending’s 12-month bank statement loan is the fastest doc path inside our Prime Time non-QM program.
12-month bank statement loan advantages
- Only 12 months of bank statements required
- No tax returns, no W-2s, no IRS 4506-C
- Up to 90% LTV on primary residence
- Loans from $150K to $4M
- Credit scores from 620 qualify
- Primary, second home, or investment property eligible
How qualifying income works
- 1
Pick your path
Choose personal bank statements (12 personal + 2 business) or business bank statements only (12 business). Personal works for sole proprietors who deposit into a personal account; business works for entrepreneurs running everything through an LLC or S-corp account.
- 2
Gather 12 months of statements
Pull the most recent 12 consecutive months from your bank online. Underwriting reviews every page — gaps or missing months will require explanation.
- 3
Income is calculated automatically
On the personal path: total eligible deposits ÷ 12 = qualifying monthly income. On the business path: deposits minus a 50% fixed expense ratio (or 3rd-party-stated ratio of ≥10%, or 3rd-party-prepared P&L) ÷ 12 = qualifying monthly income.
Program details
12-month bank statement loans live inside Total Quality Lending’s Prime Time program. The 12-month doc path shares the same Std/Bank Stmt/1099 LTV matrix as the 24-month path — your loan amount, credit score, and occupancy drive the LTV cap.
At 720+ FICO with a loan ≤$1.5M on a primary residence, max LTV is 90% purchase, 85% rate/term, and 80% cash-out. Investment property at the same tier caps at 85% purchase. State overlays for CT, FL, IL, NJ, and NY reduce max LTV to 85% purchase / 80% refinance and cap loan amounts at $2M.
Reserves: 3 months PITIA at ≤80% LTV, 6 months for 80.01–85%, 12 months above 85%. Loans >$1.5M require 9 months and loans >$2.5M require 12 months. DTI max is 50% (up to 55% on primary residence at ≤80% LTV with $3,500 residual income).
For the full FICO × loan-amount LTV matrix and reserve scale, see Prime Time loans.
12-month bank statement loan — FAQs
What is a 12-month bank statement loan?
A 12-month bank statement loan is a non-QM mortgage that qualifies self-employed borrowers using deposits from 12 months of personal or business bank statements instead of tax returns. Total Quality Lending offers this under our Prime Time program with up to 90% LTV.
Why pick 12 months instead of 24 months?
The 12-month path is the shorter doc requirement — useful if your most recent year shows substantially stronger income than the prior year, or if you don't yet have 24 months of self-employment history readily organized. Both paths land in the same LTV matrix, but 24 months can yield a smoother income average and sometimes better pricing.
Do I need a CPA letter for a 12-month bank statement loan?
Only if you choose the business bank statement path with the 3rd-party expense ratio method or the 3rd-party prepared P&L method. The personal bank statement path and the business path using the fixed 50% expense ratio do NOT require a CPA letter.
Can I use a 12-month bank statement loan to buy an investment property?
Yes. Bank statement loans are permitted on primary residence, second home, and investment occupancies under Prime Time. Investment property max LTV at 720 FICO and ≤$2M loan amount is 85% purchase, 80% rate/term, 75% cash-out.
What's the minimum credit score?
620. Best terms unlock at 720+. Interest-only options are available for borrowers with 660+ FICO up to 90% LTV.
Does my business have to be a certain age?
Minimum two-year self-employment history is required (per the 1003 application Employment section). Newer businesses won't qualify on this program.