24-Month Bank Statement Program
24-Month Bank Statement Mortgages
Two years of statements gives underwriting a fuller picture of your business — which often translates into better pricing and stronger LTV. Total Quality Lending’s 24-month bank statement loan is the gold-standard non-QM doc path for self-employed borrowers.
24-month bank statement loan advantages
- Two-year averaging smooths out income spikes and dips
- Often unlocks better pricing tiers than 12-month path
- Up to 90% LTV on primary residence
- Loans from $150K to $4M
- No tax returns, no W-2s, no 4506-C
- Personal, business, primary, second home, or investment eligible
How qualifying income works
- 1
Pick personal or business path
Personal path = 24 months of personal statements + 2 months of business statements showing activity and transfers to personal. Business path = 24 months of business statements only.
- 2
Gather 24 months of statements
Pull the most recent 24 consecutive months. Underwriting averages eligible deposits across all 24 months, so a strong full year smooths over a slower quarter.
- 3
Income calculated three ways (business path)
Method 1: 50% fixed expense ratio. Method 2: 3rd-party CPA/EA/tax-preparer-stated expense ratio (min 10%). Method 3: 3rd-party-prepared P&L from a CPA, EA, or tax preparer. Use whichever produces the strongest qualifying income.
- 4
Personal path is simpler
Total eligible deposits across 24 months ÷ 24 = qualifying monthly income. Business statements only need to show activity + transfers — no expense ratio applied on the personal path.
Program details
24-month bank statement loans share the same LTV matrix as the 12-month and 1099 paths — the Std/Bank Stmt/1099 column inside Prime Time. The longer look-back is where the pricing advantage usually shows up.
At 720+ FICO with a primary-residence loan ≤$1.5M, max LTV is 90% purchase, 85% rate/term, and 80% cash-out. Loans above $1.5M step down progressively — see the full FICO × loan-amount matrix on the Prime Time loan hub.
Reserves run 3 months PITIA at ≤80% LTV, 6 months at 80.01–85%, and 12 months above 85%. Loans >$1.5M require 9 months; loans >$2.5M require 12 months. DTI caps at 50%, with 55% allowed on primary residence at ≤80% LTV when the borrower has $3,500/mo residual income.
State overlays apply to CT, FL, IL, NJ, and NY: max LTV drops to 85% purchase / 80% refinance with a $2M loan-amount cap.
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 using deposits from 24 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.
When is 24 months better than 12 months?
When your income is uneven — strong Q1 and Q3, weaker Q2 and Q4, for example — the 24-month average produces a smoother qualifying number. It can also unlock better pricing tiers because lenders treat two-year history as lower-risk. If your most recent year is the strongest, the 12-month path may still win.
Do I need 24 consecutive months from the same account?
Yes. Underwriting expects 24 consecutive months from the bank account(s) where business income lands. If you switched accounts mid-period, both accounts must be included. Gaps require letters of explanation.
What credit score do I need?
Minimum is 620. Best LTV and pricing unlock at 720+. Interest-only is allowed at 660+ FICO up to 90% LTV.
Can I buy an investment property with a 24-month bank statement loan?
Yes. Investment occupancy is eligible under Prime Time. Max LTV at 720 FICO with a loan ≤$2M is 85% purchase, 80% rate/term, 75% cash-out on investment property.
Do I need a CPA letter?
Only for the business path Method 2 (3rd-party-stated expense ratio) or Method 3 (3rd-party-prepared P&L). The personal path and the business path Method 1 (fixed 50% expense ratio) do not require any CPA involvement.