Frequently Asked Questions

Should I use 12 or 24 months of bank statements for my mortgage?

It depends on your income trajectory. If income has grown significantly in the past year, 12 months typically qualifies you for more. If income is steady, 24 months produces a more stable file. A Non-QM loan officer should model both before you decide.

What happens if my income went down in the most recent year?

A 24-month average may smooth out the decline and produce stronger qualifying income than using the most recent 12 months alone. The reason for the decline should be documented clearly in the file.

Can I switch between 12-month and 24-month after I apply?

Typically yes, early in the process — but once underwriting begins, switching programs requires restarting the file. This is why modeling both scenarios before application is important.

Does the expense ratio change between 12-month and 24-month programs?

No. The expense ratio calculation (typically 50% for business accounts, reducible with CPA documentation) applies the same way regardless of which statement period you use.

Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.

Mbanc NMLS #38232 | Equal Housing Opportunity Lender

About the Author

Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.

Contact: sales@mbanc.com | mbanc.com/non-qm-trades