Bank Statement Programs are for borrowers who are self-employed, paid on commissions, or who otherwise have a difficult time proving their income by traditional means but are depositing enough into their bank account every month to qualify. Instead of providing W2s and pay stubs, etc. a borrower may be permitted to provide 12 or 24 months (sometimes as few as 6 months) worth of bank statements to count as their income.

The lender will take the 12 or 24 months of required bank statements and determine what the average deposits are. Then, depending on the lender, they will use all or a percentage of that and consider it your monthly income.

NOTE: Some lenders may have different calculations on what exactly they consider your income based on those bank statements. But, many will consider 100% of your average deposits as your monthly income if it is a personal bank account, and a lessor percentage if it is a business account.