Bank Statement Loan Qualifying Income Averager

Turn raw bank statement deposits into the qualifying income most bank-statement mortgage underwriters expect. Enter your averaged monthly deposits and the allowable expense factor, then layer in target and ceiling DTI limits along with existing debts to surface housing payment capacity, annualized qualifying income, and remaining headroom before overlays are breached.

Average eligible deposits from the statements your lender accepts (usually 12 or 24 months).
Enter the percentage your lender subtracts for operating expenses or cost of goods sold.
Defaults to 43% when blank to mirror common bank statement mortgage overlays.
Include auto, student loan, and revolving minimums; blank or $0 treats the borrower as debt-free.
Defaults to 50% to reflect most program ceilings; lower it if your investor caps DTI sooner.

Examples

  • $72,500 deposits, 32% expense factor, 43% target DTI, $1,850 debts ⇒ Qualifying income $49,300.00 USD, annualized $591,600.00 USD, housing room at 43% equals $19,349.00 USD, and the 50% ceiling allows $22,800.00 USD of combined payments (46.25% headroom).
  • $58,000 deposits, 38% expense factor, 41% target DTI, $3,200 debts, 49% ceiling ⇒ Qualifying income $35,960.00 USD, debts consume 8.90% of DTI, maximum housing payment at 41% is $11,543.60 USD, and total room before the 49% ceiling is $14,420.40 USD.

FAQ

Which deposits should I include in the average?

Use business deposits that reflect true revenue. Back out owner transfers, loan proceeds, or one-off refunds so the average mirrors recurring cash flow the lender can document.

How do I handle verified business expenses that differ from the default factor?

If your CPA letter or underwriting exception uses a custom factor, enter that percentage directly. The calculator immediately recomputes qualifying income using the approved ratio.

Can I model a co-borrower with separate debts?

Yes. Add the co-borrower's recurring obligations to the existing debt field so the DTI reflects the combined monthly liabilities submitted with the loan.

Does this replace a full income analysis?

No. Lenders still verify large deposits, business licenses, and expense reasonableness. Use the results here to pre-qualify and pair them with program overlays before locking a loan.

Additional Information

  • Qualifying income equals average deposits multiplied by one minus the allowable expense factor, yielding the figure lenders plug into DTI worksheets.
  • Annualized income multiplies the qualifying monthly income by 12 to align with underwriting summaries and loan pricing engines.
  • Existing debt share reports how much of the qualifying income your current obligations already consume, so you can plan paydowns before submission.
  • Headroom to the hard DTI ceiling highlights contingency space for reserves, rate changes, or guideline overlays that could appear in the final underwrite.

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