Personal Bank Statements
Personal statements show deposits into your individual accounts. Lenders assume these represent money you’ve already paid yourself—income after business expenses.- Lower or no expense factor applied (typically 0-10%)
- Simpler documentation and underwriting
- Only counts money that reaches your personal account
Business Bank Statements
Business statements show revenue flowing through your company accounts. Lenders apply an expense factor to account for operating costs.- Captures total business revenue
- Higher expense factors reduce qualifying income (30-50% typical)
- Requires more documentation (business license, formation docs)
Combined Statements
Some lenders allow both personal and business statements together. Income from each is calculated separately then combined—capturing your full financial picture but adding underwriting complexity.Which Should You Choose?
Personal statements work best if you pay yourself regularly and most income flows to your personal account. Business statements work best if you retain significant earnings in the business or your personal deposits don’t reflect your true income. Combined statements work best if your income is split between accounts and neither alone tells the full story.Example Comparison
A business owner deposits $20,000/month into their business account and transfers $10,000/month to personal.| Approach | Monthly Qualifying Income |
|---|---|
| Personal only | $10,000 |
| Business only (50% expense factor) | $10,000 |
| Combined | $15,000 |