Bank Statement Loans Explained: 12 vs. 24 Months of Deposits, and Which Is Better for You
Frank Herrera, NMLS #227613
October 21, 2026
If you're self-employed in Florida, your tax returns often understate what you really earn. A bank statement loan lets you qualify on 12 or 24 months of personal or business bank statements instead. The big question most borrowers ask: which period should I use?
How a bank statement loan works
We total your qualifying deposits over the statement period, apply an expense factor (typically 10%–50% depending on your business type), and divide by the number of months to get a monthly qualifying income. No tax returns are required.
12 months vs. 24 months at a glance
| 12 months | 24 months | |
|---|---|---|
| Statements needed | 12 months | 24 months |
| Income is averaged over | The most recent year | The last two years |
| Often helps when | Recent income is higher than before | Income is steady or last year was slower |
| Paperwork | Less | More |
A quick example
The numbers below are hypothetical and for illustration only — not a quote or an offer. Assume a 50% expense factor.
| 12 months | 24 months | |
|---|---|---|
| Total qualifying deposits | $240,000 | $400,000 |
| After 50% expense factor | $120,000 | $200,000 |
| Monthly qualifying income | $10,000 | $8,333 |
In this example the business grew last year, so the 12-month window shows more qualifying income. If last year had been the slower year, 24 months would come out ahead.
When 12 months may fit better
- Your business has grown and recent deposits are stronger
- You want to provide less paperwork
- Earlier months included a slow period you'd rather not average in
When 24 months may fit better
- Your income is steady year over year
- The past 12 months were slower than the year before
- You have seasonal swings that even out over two years
Other things lenders look at
- Self-employed for at least 2 years (1 year case-by-case)
- Minimum 620 credit score (660+ for best pricing)
- 10%–20% down depending on credit and property type
- Reserves of 3–6 months of mortgage payments typically required
- Large or unusual deposits may need an explanation
See full program details, eligibility, and FAQs. Bank Statement Loan program →
How to get started
- Download your last 24 months of statements — we can compare both options
- Separate business and personal accounts if possible
- Call us and we'll run both calculations before you apply, with a soft-pull credit check
Frequently asked questions
Is a 12-month or 24-month bank statement loan better?
Neither is better for everyone. 12 months often helps when your recent deposits are higher than in earlier years; 24 months can help when your income is steady or the past year was slower. We run both to see which fits.
Can I use personal or business bank statements?
Yes. Our bank statement program accepts 12 or 24 months of personal or business bank statements.
How is my income calculated?
We total qualifying deposits over the statement period and apply an expense factor (typically 10%–50% depending on business type) to arrive at a monthly qualifying income.
Do I need tax returns?
No. Bank statement loans qualify on deposits instead of tax returns.
How long do I need to be self-employed?
Typically at least 2 years; 1 year may be considered case-by-case.
Have questions about your numbers? Call or text Frank at (305) 299-6995 or email frank@frankyourmortgageguy.com.
Let's run your numbers
This article is for educational purposes only and is not financial, tax, or legal advice. Examples are hypothetical. All loans are subject to credit approval, property review, and program guidelines. This is not a commitment to lend. Quest Mortgage Services, Company NMLS #2508429. Frank Herrera NMLS #227613. Equal Housing Opportunity.
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Answers are educational, not a loan offer. For advice on your situation, call or text (305) 299-6995.