Bank Statement Program – Explained
Citadel Servicing offers a 12 & 24-Month Bank Statement Program.
Borrower Employment Types:
- Self Employed
o Must provide business license, Tax Preparer’s letter or corporate paperwork.
Citadel Servicing will accept Personal or Business Bank Statements. However, qualifying income will be calculated differently.
Personal Bank Statements: 100% of Deposits
Add all deposits for all 12 or 24 months and divide that amount by 12 or 24 respectively to receive the monthly income amount we will apply as the borrower’s qualifying income.
Ex. 24 months deposits total = $200,000 / 24 = $8,333 a month income.
Ex. 12 months deposits total = $100,000 / 12 = $8,333 a month income.
Business Bank Statements: 50% of Deposits 24 months ONLY
Add all deposits for all 24 months, divide by 2, and then divide by 24 to receive the monthly income amount we will give to the borrower.
Ex. 24 month deposit total = $500,000 / 2 = $250,000 / 24 = $10,333 a month income. * Only 50% is used because we have to assume the business has overhead.
Details of Program:
Personal & Business Guidelines
- Only deposits can be used Transfers are NOT counted on personal and case-by-case for business*
- Must have 12 or 24 consecutive months of statements (no gaps)
- Must provide All pages (even the last pages with advertising)
- Can not comingle (use two different accounts) statements**
- If account was used and closed and new account for remainder of statements must show closing of old account and opening of new account
* Transfers may be accepted for business statements when they come from credit card clearing houses (examples: Paypal, Square, AMEX, etcetera). Case-by-Case and must be considered normal for the company.
** Multiple accounts are considered on a case-by-case when (a) one account is closing and reopening new account, or (b) for Business accounts that are two different and autonomous businesses.
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