Yes — bank statement income is one of the most widely used qualification methods for Non-QM HELOCs. It is specifically designed for self-employed borrowers whose tax returns understate their actual income.

How Bank Statement Income Works

The lender reviews 12 or 24 months of bank statements — either personal, business, or both — and calculates your average monthly qualifying income based on the deposit history.

Personal Bank Statements

For personal bank statement programs, all deposits are typically counted (minus certain non-income items like transfers and loan proceeds). The average monthly deposit is used as qualifying income.

Business Bank Statements

For business bank statement programs, the lender applies an expense factor to account for business operating costs. A typical expense factor is 40%–50% — meaning if your business deposits average $30,000/month, the lender counts $15,000–$18,000 as qualifying income. Some lenders allow a CPA letter to substantiate actual expense ratios, which can increase the qualifying income if your actual expenses are lower than the standard factor.

24 vs. 12 Months

Most Non-QM lenders allow either 12 or 24 months of statements. Using 24 months provides a more complete picture of your income history and may be required for some programs. 12-month options are faster but may result in slightly more conservative income calculations.

What You Need

• 12 or 24 consecutive months of bank statements (no gaps)
• Statements for all accounts used in the calculation
• A letter from your CPA confirming self-employment status (some lenders require this)