Bank Statement Loan Down Payment Guide (2026)

There is no universal bank statement loan down payment requirement. As of July 21, 2026, theLender’s public bank statement loan product page advertises down payments as low as 10% for eligible scenarios. Current program guidelines, occupancy, credit profile, property type, loan amount, documentation, appraisal results, and underwriting determine actual eligibility. A 10% down payment corresponds to a 90% loan-to-value ratio, commonly called LTV. The 10% figure is an advertised minimum for qualifying files. Actual qualification may require a larger contribution.

Use this short checklist when estimating the cash required:

Confirm the eligible LTV: Ask for the current program matrix based on occupancy, credit, property type, and loan amount.
Calculate the down payment: Apply the required percentage to the lender’s accepted value basis.
Add transaction expenses: Include closing costs, prepaid items, and initial escrow funding.
Subtract eligible credits and deposits: Account for earnest money already paid and any permitted seller or lender credits.
Protect required reserves: Keep post-closing liquidity separate from funds used at settlement.
Prepare documentation: Organize bank statements, business records, and explanations for large or unusual deposits.

Current theLender bank statement program snapshot

As of July 21, 2026, theLender’s public product page describes a bank statement program with 12 or 24 months of personal or business bank statements, fixed-rate and adjustable-rate mortgage options, eligible interest-only options, and financing for primary residences, second homes, and investment properties. The page also advertises loan amounts up to $4 million and down payments as low as 10% for eligible scenarios.

An adjustable-rate mortgage, or ARM, has an interest rate that may adjust after its initial fixed period according to the loan terms. An interest-only, or IO, payment option permits scheduled payments that exclude principal during the designated IO period. The balance generally remains unchanged during that period unless the borrower makes additional principal payments.

These public product features are a starting point for discussion. The file must fit the current underwriting matrix and receive final approval. Eligibility may vary by credit score, occupancy, property, requested loan amount, statement type, income analysis, and other file details. Borrowers can review the broader bank statement loan qualification factors and discuss their specific scenario with a licensed loan professional.

Down payment, loan amount, and LTV formulas

The down payment is the portion of the purchase price funded from the borrower’s available transaction funds. The loan amount is the amount financed. LTV expresses the loan amount as a percentage of the property value accepted for lending purposes.

The Consumer Financial Protection Bureau, or CFPB, explains that LTV compares the amount borrowed with the appraised property value and may affect available loan terms and costs. See the CFPB’s LTV explanation for additional consumer guidance.

Down payment percentage: 100% minus the permitted LTV percentage.
Down payment amount: Purchase price multiplied by the down payment percentage.
Loan amount: Purchase price minus the down payment amount, subject to the lender’s value basis and loan limits.
LTV: Loan amount divided by the accepted property value, multiplied by 100.

For example, a 90% LTV corresponds to 10% down. An 80% LTV corresponds to 20% down. A lower permitted LTV increases the equity contribution required from the borrower.

Three worked down payment examples

Scenario	Purchase price or value	Down payment or price gap	Loan amount	LTV
$600,000 purchase at 10% down	$600,000	$60,000	$540,000	90%
$750,000 purchase at 20% down	$750,000	$150,000	$600,000	80%
$600,000 price, $570,000 appraisal, maximum 80% LTV	$570,000 accepted value	$144,000 purchase-price gap	$456,000	80%

In the first example, $540,000 divided by $600,000 equals 90% LTV. The borrower contributes $60,000 toward the price before closing costs, prepaid expenses, and reserves.

In the second example, $600,000 divided by $750,000 equals 80% LTV. The borrower contributes $150,000 toward the purchase price before other settlement expenses.

In the appraisal example, 80% of the $570,000 appraised value equals a $456,000 maximum loan. The buyer would need $144,000 to bridge the difference between the $600,000 contract price and the $456,000 loan. This educational example assumes the lender applies 80% LTV to the $570,000 value. Actual program guidelines, contract terms, appraisal review, and the lender’s accepted value basis control the final calculation.

Down payment and cash to close are different numbers

A down payment is one part of the total funds needed for a purchase. Track each cash category separately because the initial percentage estimate differs from the final settlement amount.

Down payment: The borrower-funded portion of the purchase price.
Earnest money deposit: Money delivered after contract acceptance under the purchase agreement. When properly documented and credited at closing, it generally reduces the remaining amount due from the buyer.
Closing costs: Charges associated with the mortgage and real estate transaction, such as lender fees, title services, settlement services, appraisal charges, recording fees, and permitted third-party expenses.
Prepaid expenses and escrow funding: Amounts collected for items such as homeowners insurance, property taxes, prepaid interest, and initial escrow account deposits.
Cash to close: The amount the borrower must deliver for settlement after accounting for the down payment, costs, prepaid items, deposits, credits, and adjustments.
Reserves: Verified assets remaining after closing. Reserves may be measured using a designated number of monthly housing payments or another method stated in the applicable guidelines.

The CFPB’s down payment guidance recommends planning for closing costs and an emergency cushion along with the purchase contribution. Reserve funds should remain available after the transaction when the loan guidelines require post-closing liquidity.

Personal and business bank statement paths

Bank statement loans are generally designed for borrowers whose income is evaluated through eligible bank deposits instead of a traditional income calculation centered on tax-return figures. The lender reviews the statements and supporting documentation under its current program rules.

Personal bank statements

A personal bank statement path uses eligible deposits flowing into personal accounts. Underwriting may review deposit consistency, identified income sources, transfers between accounts, recurring obligations, and deposits that require clarification. The lender determines which deposits qualify as income and which entries represent transfers, loan proceeds, refunds, asset sales, or other sources.

Business bank statements

A business bank statement path begins with deposits into an eligible business account. Since gross business deposits may include money needed to operate the business, an expense factor may be applied. The expense factor represents the portion attributed to business expenses. The remaining eligible amount may be used in the lender’s income analysis.

For illustration, a higher accepted expense factor produces less qualifying income from the same volume of deposits. A lower supported expense factor produces more qualifying income. The actual factor and supporting records depend on the current program and the borrower’s business profile. Possible documentation may include a business narrative, accountant or tax-preparer information, profit-and-loss records, or other evidence requested for the file.

Borrowers should avoid assuming a particular expense percentage before their documentation is reviewed. The relevant question is how the current guidelines treat the business, account ownership, deposit history, and operating expenses. This income result can affect the maximum loan amount and, indirectly, the amount of cash needed to complete the purchase.

What changes the down payment requirement

Bank statement programs commonly use matrices with different maximum LTV tiers. A scenario that fits one tier may receive a higher or lower permitted LTV than another scenario.

Occupancy: Primary residences, second homes, and investment properties may fall into different matrix categories. The permitted LTV can vary across those categories.
Credit profile: Credit score, housing payment history, major credit events, and the overall credit file may affect eligible LTV tiers and program access.
Documentation quality: Complete statements, clear account ownership, consistent deposits, and prompt explanations support an efficient income review. Missing pages or unexplained activity may change the analysis or delay a decision.
Loan amount: Maximum LTV may change at designated loan-size thresholds. The advertised program maximum of up to $4 million remains subject to current eligibility requirements.
Property type: Condominiums, multi-unit properties, rural properties, unique homes, mixed-use characteristics, or other property features may receive separate treatment.
Appraisal: A lower accepted value may reduce the available loan amount and increase the buyer’s required contribution.
Statement path: Personal and business statement files involve different income calculations. The resulting qualifying income may limit the approved loan size.
Matrix tier: A change in credit, occupancy, property, documentation, or loan amount may place the application in a different maximum-LTV tier.

Rate and pricing are separate from the down payment calculation, although the same risk characteristics may influence both. Borrowers researching this relationship can read theLender’s overview of bank statement loan rate factors.

Purchases use down payments; refinances use equity

A purchase transaction has a sales price, a loan amount, and a buyer contribution. That buyer contribution is commonly described as the down payment.

A refinance replaces financing on a property already owned. Refinances are evaluated through the property value, existing liens, requested new loan amount, and resulting LTV. A cash-out refinance also includes funds delivered to the borrower from available equity, subject to the program’s cash-out and LTV limits. Calling refinance equity a down payment creates confusion because no new purchase price is being funded.

Source-of-funds documentation

The lender and settlement provider generally need evidence showing where closing funds came from and that the borrower has access to them. The exact review period and required document list should come from the professionals handling the file.

Common documentation may include complete account statements, transaction histories, proof of an earnest money transfer, deposit receipts, wire confirmations, gift documentation when gifts are eligible, and records supporting proceeds from an asset sale. Account ownership and access to funds may also require verification.

Large or unusual deposits may require an explanation and supporting evidence. Examples include a business distribution, sale of equipment, transfer from another owned account, insurance payment, repayment of a personal loan, or proceeds from selling an asset. Keep the paper trail from the original source through the destination account.

Avoid moving money repeatedly among accounts before closing without keeping records. Transfers can be documented, yet several movements create additional statements and transaction histories for review. Before liquidating investments, transferring business funds, accepting a gift, or depositing cash, ask how the funds should be documented and confirm their eligibility.

What happens after a low appraisal

The CFPB explains that when an appraisal is below the sale price, the buyer may need to renegotiate, challenge the appraisal through the available process, contribute more cash, or review other contract options. See the CFPB’s guidance on an appraisal below the sale price.

A practical appraisal-shortfall workflow is:

Review the report: Check the property facts, comparable sales, adjustments, condition, and any appraisal requirements.
Confirm the accepted value: Ask which value the lender will use after its appraisal review.
Recalculate the loan: Multiply the accepted value by the maximum permitted LTV for the approved scenario.
Measure the funding gap: Subtract the revised loan amount from the contract price.
Check available funds: Confirm that added cash would leave required reserves intact.
Discuss contract choices: Options may include a price renegotiation, seller concession within applicable limits, reconsideration of value, or another remedy available under the agreement.
Update settlement estimates: Obtain revised figures showing the effect on cash to close.

Using the earlier example, an 80% LTV limit applied to a $570,000 accepted value produces a $456,000 loan. At a $600,000 contract price, the buyer contribution toward the price becomes $144,000. If the original plan used 80% of the $600,000 price, the planned loan was $480,000 and the planned price contribution was $120,000. The lower value creates an additional $24,000 funding need.

Illustrative cash planning worksheet

The following worksheet uses invented assumptions for education. It is neither a quote nor a Loan Estimate. Actual charges, credits, escrow requirements, and reserve requirements vary by transaction.

Worksheet item	Illustrative amount	Treatment
Purchase price	$600,000	Contract assumption
Down payment	$60,000	10% illustrative contribution
Estimated closing costs and prepaid items	$18,000	Added to required funds
Earnest money already paid	$10,000	Subtracted when fully credited
Illustrative seller credit	$5,000	Subtracted when permitted and applied
Estimated remaining cash to close	$63,000	$60,000 + $18,000 - $10,000 - $5,000

This worksheet assumes the appraisal supports the planned loan, the 10% down structure is approved, the earnest deposit receives full settlement credit, and the seller credit is eligible for the listed expenses. Reserves are separate. If the lender requires post-closing liquidity, the borrower must have the $63,000 estimated settlement amount plus the required reserves and any personal safety cushion.

Seven steps from planning through closing

Review eligibility before making an offer: Provide the intended occupancy, estimated credit profile, purchase range, property type, requested loan amount, and statement path. Ask for a scenario based on the current matrix.
Submit statements for income review: Provide complete personal or business statements for the requested period. Include all pages and supporting business documents requested for the expense analysis.
Build a cash worksheet: Estimate the down payment, closing costs, prepaid expenses, earnest money, credits, moving expenses, repairs, and reserves. Keep a cushion for changing figures.
Verify funds before transferring them: Confirm acceptable sources and documentation before moving business money, receiving gifts, selling assets, or consolidating accounts.
Write the offer with informed contract guidance: Discuss financing, appraisal, inspection, earnest money, and closing provisions with the appropriate real estate and legal professionals.
Update the plan after appraisal and underwriting: Recalculate LTV, loan amount, price contribution, cash to close, and reserves whenever accepted value or program eligibility changes.
Review final settlement figures and wire instructions: Compare the final figures with prior disclosures, verify wire instructions through a trusted channel, and keep required reserve funds outside the closing transfer.

How to compare lender scenarios fairly

Use the same assumptions for every comparison: purchase price, down payment, loan amount, occupancy, property type, statement period, estimated credit profile, and intended loan structure. A 10% down ARM and a 20% down fixed-rate loan answer different questions, so comparing their payment figures without aligning assumptions may obscure the tradeoffs.

Ask each lender to identify the maximum LTV used, the income method, business expense treatment, reserve requirement, prepayment terms when applicable, fixed or ARM structure, IO features when applicable, and estimated cash to close. Review points, lender credits, origination charges, third-party costs, and prepaid items separately.

The CFPB explains the purpose and major sections of the Loan Estimate. Once comparable Loan Estimates are available, use the CFPB’s Loan Estimate comparison guidance to review loan terms, projected payments, closing costs, cash to close, and other disclosed features using consistent assumptions.

Frequently asked questions

Can every bank statement borrower buy with 10% down?

No. The 10% figure is an advertised minimum for eligible scenarios. Current guidelines and the complete file determine the permitted LTV. Some borrowers may need a larger contribution because of occupancy, credit, property type, loan size, appraisal, income analysis, or another matrix factor.

How much is 10% down on a $600,000 home?

Ten percent of $600,000 is $60,000. At 90% LTV, the corresponding loan amount is $540,000 if the accepted value supports that calculation. Closing costs, prepaid expenses, and reserves increase the total funds that may be needed.

Does earnest money count toward the down payment?

Properly documented earnest money generally appears as a credit toward the buyer’s settlement funds. For example, a buyer who owes $70,000 before an earnest money credit and already deposited $10,000 may have $60,000 remaining, subject to final settlement adjustments and verification.

Can a seller credit reduce the down payment?

Seller credits are generally applied to eligible closing costs and prepaid items within program and transaction limits. Their treatment depends on the loan guidelines, contract, appraisal, and final settlement calculation. Ask for a revised worksheet showing exactly where the credit is applied.

Are reserves included in cash to close?

Reserves are generally assets retained after closing, while cash to close is delivered at settlement. A borrower with $63,000 due at closing and a separate reserve requirement needs enough verified assets to cover both categories.

What if business deposits are high but qualifying income is lower?

Business deposits may be adjusted for operating expenses and ineligible transactions. The resulting qualifying income may therefore be lower than gross deposits. The lender’s current expense-factor method and supporting documentation determine the calculation.

What if the appraisal comes in below the contract price?

The available loan may be recalculated from the accepted value. The buyer may need more cash, a lower contract price, an approved reconsideration of value, or another contract solution. Review the purchase agreement and available options with the relevant professionals.

Can gift funds or business funds be used?

Eligibility and documentation requirements depend on the current program and the borrower’s circumstances. Confirm the source before transferring funds. Gifts may require donor and transfer records. Business withdrawals may require evidence that the withdrawal is permitted and compatible with the business and loan analysis.

Where should borrowers start?

Start with a scenario review using the purchase price, occupancy, property type, estimated credit profile, loan amount, and available statements. Then request a written estimate of down payment, closing costs, prepaid items, and reserves. The current bank statement loan page provides the public program overview.

Bottom line

There is no universal bank statement loan down payment. As of July 21, 2026, theLender publicly advertises down payments as low as 10% for eligible scenarios, which corresponds to 90% LTV. Actual eligibility depends on the current matrix, occupancy, credit, documentation, loan amount, property, appraisal, income analysis, and underwriting.

Calculate the purchase contribution from the approved LTV, then add closing costs and prepaid items, subtract documented deposits and permitted credits, and preserve required reserves. Before making an offer, obtain a scenario based on current guidelines and organize the bank statements and source-of-funds records needed to support the full cash plan.