> ## Documentation Index
> Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Personal vs. Business Bank Statements

> Understanding the differences between qualifying with personal or business bank statements and when to use each

When applying for a bank statement mortgage, you'll need to decide whether to submit personal bank statements, business bank statements, or both. Each approach has different calculation methods.

## 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                  |

Ask prospective lenders to run the numbers both ways before deciding.S