Angel Oak Bank Statement Program: Terms and How to Prep

Quick Answer: Angel Oak Mortgage Solutions' bank statement program is a non-QM mortgage for self-employed borrowers that qualifies income from 12 or 24 months of personal or business bank statements instead of tax returns. Its published terms include a 640 minimum FICO (up to 75% LTV), up to 90% LTV with a 720 FICO, loans from $150,000 to $4 million, and a default 50% expense factor. Angel Oak is a wholesale lender, so most borrowers reach it through a mortgage broker.

Angel Oak's bank statement loan replaces tax returns, W-2s and pay stubs with a year or two of bank deposits. It is aimed at business owners, independent contractors and anyone who owns at least 25% of a business. You apply through a broker who works with Angel Oak, and the underwriter turns your eligible deposits into monthly income using the expense factor the program publishes.

What does Angel Oak's bank statement program offer?

Everything in this table comes from Angel Oak's Bank Statement Loan program page, read on October 28, 2026. Wholesale terms change often, so treat it as a snapshot and ask your broker for the current matrix before you plan around a number.

The page does not list a down payment as such. The LTV caps do the same job: at 90% LTV you are putting at least 10% down on a purchase, and at the 640 score floor the ceiling is 75%, which means at least 25% down. Reserve requirements and debt-to-income limits are not on the public page; those sit in the full guidelines your broker can pull.

How does Angel Oak calculate income from bank statements?

This is the part that decides how large a loan you qualify for, and Angel Oak spells out its rule. The program page says loans "will be qualified using a default expense factor of 50%." If your business really runs leaner than that, you can get a lower factor, but only with a statement from a third-party CPA, tax preparer or bookkeeping company. Some industries with traditionally higher costs are underwritten at a 70% expense factor instead.

The page's FAQ adds that the lender reviews total eligible deposits over the 12 or 24 months, and that the expense factor applies "when business statements are used." If your income lands in a personal account, ask the broker how Angel Oak treats those deposits before you choose which statements to submit; the FAQ wording suggests the factor is a business-statement rule, but your loan file is where it gets settled.

Here is what the factor does to the same deposits, using invented numbers: a contractor with $264,000 of eligible business deposits over 12 months.

The gap between the first and last rows is the reason to get the letter early if your margins support it. A preparer who already files your return can usually write it from the books they keep; one who has never seen your business will want records first.

What if bank statements don't fit your situation?

The same page lists two other ways to document income inside this program. A profit-and-loss statement is accepted as income verification. There is also a 1099 option: one or two years of 1099 history from a single source, with a minimum 720 FICO and up to 80% LTV. If most of your money comes from one client who sends you a 1099, that route may be simpler than defending two years of deposits.

Who qualifies, and how long do you need to be self-employed?

The page names self-employed individuals, small business owners and independent contractors. Its FAQ says borrowers with "consistent deposit history and at least two years in the same line of work may qualify." Separately, the page lists a line reading "Self-Employed for 1 Year | Min. 720 FICO | Up to 80% LTV | 2-Year History in a Similar Profession."

Read together, two years in the same work is the general expectation, and a borrower with only one year of self-employment may still fit if the score is at least 720, the LTV stays at or under 80%, and the prior two years were in a similar profession, for example a salaried nurse who started a staffing business. Because the page states it both ways, confirm which one applies to you before you pay for an appraisal.

Can you apply directly with Angel Oak?

Usually not. Angel Oak Mortgage Solutions describes itself as "the wholesale lending division of Angel Oak Companies," and its site is built around brokers: broker login, account executives, pricing tools. Your route is a licensed mortgage broker who places loans with Angel Oak. The company's About page also says "Not a Broker? We can still help. Connect with our team today," so if you cannot find a broker you can ask Angel Oak directly.

When you talk to brokers, ask whether they have closed Angel Oak bank statement loans, which statement period they would use for you, and what rate difference they see between 12 and 24 months. Our guide to choosing a bank statement lender covers license checks and the questions that separate experienced brokers from ones learning on your file.

Is the bank statement HELOC the same program?

No. Angel Oak publishes a separate bank statement HELOC with its own terms: 12 or 24 months of business or personal statements, a 700 minimum FICO, lines up to $750,000 on business statements and up to $500,000 on personal statements, and 15- or 20-year terms with a 3- or 5-year draw. If you want to tap equity without refinancing your first mortgage, that is the product to ask about.

How should you prepare your statements before applying?

An underwriter will read every page of every month you submit, so the work you do beforehand is mostly about removing surprises.

1. Pick the account and period deliberately. Twelve months can help if the last year was your strongest; 24 months smooths out a bad stretch. Use the account where the business income actually lands, and don't switch accounts partway through.
2. Download complete PDFs from the bank. Every page, including blank back pages and the summary page. Lenders generally want the bank-issued statement itself, not screenshots or edited exports.
3. Total the deposits yourself, month by month. If you have 24 PDFs, QuickBankConvert converts each statement into rows of dated, signed transactions that you can stack in one sheet, filter to credits and sum by month. A free account covers 3 statements a month, so a 24-month history may call for a paid plan or the one-time pass.
4. Mark what isn't income. Transfers from your own savings, loan proceeds, refunds and credit card cash advances get removed by the underwriter. Remove them first so your estimate matches theirs.
5. Explain anything unusual. A one-off large deposit, a gap month or a spike will draw a question. Prepare a short written explanation with the supporting document; our guide to the large deposit letter of explanation shows the format.
6. Line up the expense-factor letter. If your real costs are below 50% of revenue, ask your CPA, tax preparer or bookkeeper for the statement Angel Oak requires now, not after the file is in underwriting.

If you are new to how deposit-based qualifying works in general, read what a bank statement loan is first; this page only covers Angel Oak's published version.

Is Angel Oak's program the right fit?

It suits borrowers whose tax returns understate what they earn after write-offs, whose deposits are steady, and who can bring at least 10% down with strong credit or 25% down near the score floor. It is less attractive if your tax returns already show enough income: a conventional loan documented with returns usually prices better than a non-QM product. It is also a poor fit for loans under $150,000, which fall below the program minimum.

Get quotes from more than one wholesale lender through your broker. Bank statement terms vary a lot between lenders on the same file, especially the expense factor, and that single number can move your qualifying income by thousands of dollars a month.

Related guides

• What is a bank statement loan?
• Bank statement lenders: how to choose one
• Business bank statement loans
• Large deposit letter of explanation
• How many bank statements a mortgage needs