In a chart, compare each lender's minimum expense ratio for a Bank Statement Loan

Here’s a side-by-side comparison of each lender’s minimum expense ratio for a Bank Statement Loan. This is the lowest percentage of gross deposits that must be deducted as business expenses when calculating qualifying income.

---

Minimum Expense Ratio by Lender (Bank Statement Loans)

Lender	Minimum Expense Ratio	Notes / Conditions	More Info Link
FundLoans	20%	With CPA/CTEC/EA letter or P&L; standard is 50%	FundLoans
A&D Mortgage	10%	With CPA/tax preparer/industry standard; standard is 50%	A&D Mortgage
Angel Oak	15%	With CPA/tax preparer statement; standard is 50%	Angel Oak
Arc Home	15%	With CPA/EA/CTEC letter; cannot go below 15%	Arc Home
Champions Funding	10%	With CPA attestation; some programs default to 25% or 50% unless CPA letter provided	Champions Funding
Change Wholesale	No explicit minimum	No set minimum in guidelines; lender discretion	Change Wholesale
Deephaven	No explicit minimum	No set minimum in guidelines; lender discretion	Deephaven
Newfi Lending	No explicit minimum	Default is 50%; lower allowed with CPA/accountant statement (no explicit minimum stated)	Newfi Lending
NQM Funding	10%	With CPA-prepared P&L; standard is 50%	NQM Funding
Loan Stream	15%	Can be higher by business type; lower with CPA letter or P&L (not below 15% except with review)	Loan Stream

---

Key Takeaways

• Lowest possible minimums: 10% (A&D Mortgage, Champions Funding, NQM Funding) with CPA/tax preparer documentation.
• Most common default: 50% unless you provide CPA/third-party documentation.
• Some lenders (Change Wholesale, Deephaven, Newfi Lending): No explicit minimum, but expect to justify any low expense ratio.
• Always check program-specific requirements and be prepared to provide CPA or tax preparer documentation to use the lowest ratios.

Would you like more details on how to document a lower expense ratio or see program-specific requirements for a particular lender?