Northstar Funding is rated as an A+ Lender by The Mortgage Reports, a leading resource for borrowers.

Northstar Funding’s Business Bank Statement loan allows self-employed borrowers to qualify for a mortgage using business deposits instead of tax returns.

For many business owners, traditional mortgage requirements fall short. Two years of tax returns often don’t reflect real cash flow due to deductions, depreciation, and write-offs. As a result, qualified borrowers can appear weaker on paper than they are in practice. Northstar Funding addresses this gap by offering straightforward business bank statement options that focus on how your business actually performs—with no tax returns required.

Business Bank Statement Loan Program Highlights

This program is designed to provide flexibility while maintaining clear, predictable guidelines:

• Qualify using 3, 12, or 24 months of business bank statements

• Loans up to 90% loan-to-value (LTV)

• 10% minimum down payment for qualified borrowers

• Loan amounts up to $10 million

• 30-year fixed-rate options available

• Interest-only options available

• Minimum credit score of 600

• Debt-to-income ratios up to 50% in specific scenarios

• Recent credit events may be allowed

• Available for purchase, rate/term refinance, and cash-out refinance

• Eligible for primary residences, second homes, and investment properties

• Self-employed for one year may be acceptable in some instances

• Only 25% business ownership required

How Income Is Calculated Using Business Bank Statements

Income is based on allowable business deposits. Transfers between accounts are not permitted.

Standard Expense Ratios by Business Type

When no custom expense analysis is provided, the following default expense ratios apply:

Most businesses – 50% expense ratio
Up to 50% of average monthly deposits may be used as qualifying income.
Example: $20,000 in average monthly deposits yields $10,000 in qualifying income, assuming 100% ownership.

Service-based businesses – 15% expense ratio
For consultants, attorneys, accountants, financial planners, insurance agents, and similar service professionals, up to 85% of allowable deposits may be used.

Product-based businesses – 70% expense ratio
For construction, restaurants, retail, manufacturing, and other product-based businesses, up to 30% of allowable deposits may be used.

Custom Expense Ratio Using CPA Documentation

If the standard expense ratios don’t accurately reflect your business, a CPA-prepared expense ratio letter or profit and loss statement (P&L) may be used instead. This allows for actual operating expenses, providing additional flexibility for complex or high-overhead businesses.

Business Bank Statement Loan – Eligibility FAQs

Who qualifies for a business bank statement loan?
Self-employed borrowers who earn income from a business and prefer not to use tax returns may qualify based on business bank statements.

How many months of bank statements are required?
Borrowers may qualify using 3, 12, or 24 months of business bank statements, depending on the scenario.

Are tax returns required?
No. This program does not require personal or business tax returns.

What credit score is needed?
Credit scores as low as 600 may be eligible.

How is income calculated?
Income is based on average monthly business deposits, adjusted by an expense ratio tied to the business type or supported by CPA documentation.

What types of properties are allowed?
Loans may be used for primary residences, second homes, or investment properties.

How much down payment is required?
Qualified borrowers may purchase with as little as 10% down.

Is one year of self-employment acceptable?
Yes. In some instances, borrowers with one year of self-employment may be eligible.

Can this be used for refinancing or a cash-out refinance?
Yes. The program supports rate-and-term refinances, cash-out refinances, and purchases.