Bank Statement Loans for Doctors and Licensed Medical Professionals

For the exception allowing less than two years of self-employment (but more than one year), programs like Horizon Expanded require a minimum 700 score.

If the account is co-mingled, meaning it reflects both personal and business expenses, it will be treated as a business bank statement loan and must be qualified using an expense factor.

No. If tax returns or tax transcripts are included in the file, the loan is rendered ineligible for the Bank Statement product, as this is an Alt Doc program designed specifically to bypass tax returns.

When using business bank statements, a fixed expense ratio of 50% is standard for most business types to determine the net qualifying income.

Yes, a borrower transitioning from W-2 to 1099 may be eligible if they are in the same industry with a similar role (e.g., medical doctor) and meet specific documentation requirements.

The doctor must provide documentation showing at least two years of documented previous experience in the same profession, or provide evidence of formal education in a related field.

No, there is an exception. Borrowers in a licensed profession, such as Medical, Legal, or Accounting, may be considered if their business has been in existence for less than two years, but greater than one year.

The self-employed borrower must verify a minimum of 25% ownership in the business entity to utilize business bank statements for income qualification.

Yes, the BSL program is designed for borrowers with an active U.S. based business that is generating stable revenue, which includes medical practices or self-employed consultant roles.

BSLs are beneficial because medical professionals who own their practices often utilize legitimate tax deductions and write-offs, resulting in low taxable income that makes qualification difficult under traditional mortgage standards. BSLs allow them to qualify based on actual cash flow.