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Bank statement lenders offer programs using either 12 or 24 months of statements. The choice affects your qualifying income since both programs average deposits over their respective periods.

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When 12-Month Programs Work Better

A shorter lookback period favors borrowers with rising income. Example: A contractor earned $8,000/month two years ago but now earns $15,000/month.
ProgramMonthly Qualifying Income
12-month$15,000
24-month$11,500
Choose 12 months if your income has increased recently or you had a slow period more than a year ago.

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When 24-Month Programs Work Better

A longer lookback period smooths out fluctuations. Example: A real estate agent earned $25,000/month last year but only $12,000/month this year due to a slow market.
ProgramMonthly Qualifying Income
12-month$12,000
24-month$18,500
Choose 24 months if your income decreased recently or you have seasonal fluctuations that even out over time.

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Other Considerations

  • Not all lenders offer both options—some require 24 months for larger loans or lower credit scores
  • 12-month programs may carry slightly higher rates
  • 24 months means more statements to gather and more deposits to explain
If your lender offers both options, ask them to calculate qualifying income both ways. The difference can be substantial.