Frequently Asked Questions
Can my CPA reduce my expense ratio below 30% for a bank statement loan?
Quick Answer: Some programs accept expense ratios as low as 20â25% with supporting documentation. The lower the ratio, the more documentation is typically required. A CPA letter is required at any ratio below 50%. For ratios below 30%, some programs additionally require supporting P&L statements.
What if I donât have a CPA â can I still reduce my expense ratio?
Some programs allow an enrolled agent or tax professional to provide the expense ratio letter in place of a CPA. Others require specifically a CPA. If you do not currently have a CPA, the preparation process for a bank statement loan is a good reason to establish that relationship â the letter benefits you on this application and potentially future applications.
Does getting a CPA letter delay my mortgage application?
It can add 1â2 weeks to preparation time depending on your CPAâs availability. If your timeline is tight, apply at the 50% default and add the CPA letter if your qualifying income at 50% is close but not sufficient. If your income at 50% is more than sufficient, the CPA letter may not change your outcome enough to justify the delay.
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.
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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.
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