Qualify Using Bank Statements with No P&L

Newfi Wholesale Non-QM, Products

Did you know you can qualify a borrower using business bank statements with no P&L? Simply apply a fixed expense ratio based on the size and type of business. Learn more about using our Sequoia Portfolio bank statement programs.

Expense Ratio for Bank Statement Income Calculations
Number of Employees 0 1-5 > 5
Service Business 20% 40% 60%
Product Business 40% 60% 80%
  • Service Business Examples – Consulting, Accounting, Legal, Counseling, Therapy, Financial Planning, Insurance, Information Technology, etc.
  • Product Business Examples – Retail, Food Services/Restaurant, Manufacturing, Contracting/Construction etc.
  • The expense ratio should be reasonable for the profession, for both qualifying methods.

This is an excellent opportunity to review your pipeline of borrowers who were not previously able to qualify with a full doc, and breathe new life into those deals.

Here are some other highlights and options:

  • Personal bank statements – Use 100% of employment related deposits with no additional expense calculation
  • Blended income qualification – Qualify using a combination of bank statement documentation and full doc (W-2, retirement income, asset depletion etc.)
  • Use 24 months of statements for higher LTV and better pricing, use 12 months of statements for lower LTV
  • 90% LTV up to $1,000,000 – 85% LTV up to $1,500,000 – 70% LTV up to $2,500,000
  • Available on Sequoia Portfolio Plus and Sequoia Expanded (more flexible credit qualification)
  • 40yr fixed with 10yr IO, 30yr fixed, fully amortized and interest only ARM terms available

Sequoia features fast in-house underwriting without the delays of an investor secondary review, on average these loans close in 21 days or less.