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Many self-employed borrowers have income that varies throughout the year—landscapers, tax preparers, retail businesses, tourism operators, and others with predictable busy and slow seasons. Bank statement lenders can accommodate seasonal patterns with the right approach.

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How Lenders View Seasonal Income

Lenders want to see that seasonal fluctuations are normal for your business type, not signs of instability. They look for:
  • Consistent patterns year over year
  • Strong months that offset weak months
  • Overall annual income that supports the loan
A landscaper earning $25,000/month in summer and $5,000/month in winter is fine—as long as the pattern is predictable.

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Why 24-Month Programs Help

Seasonal businesses often benefit from 24-month bank statement programs:
ProgramHow It Handles Seasonality
12-monthMay capture mostly strong or weak months
24-monthAverages across two full annual cycles
If your application falls during your slow season, a 12-month lookback might understate your income. Two years of statements smooth out the peaks and valleys.

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Documentation Tips

To strengthen your application:
  • Provide context — A brief letter explaining your business cycle helps underwriters understand the pattern
  • Show consistency — If possible, demonstrate that this year’s pattern matches prior years
  • CPA letter — Your accountant can confirm the seasonal nature of your business and typical annual income

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Timing Your Application

When you apply matters: Apply after strong season — Your most recent months show higher deposits, which may help with 12-month programs. Ensure full cycle coverage — Make sure your statement period captures at least one complete annual cycle to show the full picture.

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Reserve Requirements

Lenders may require additional reserves for seasonal businesses to ensure you can make payments during slow months. Expect 6-12 months PITIA, sometimes more.