10% Down on a Bank Statement Loan: How LTV Limits Work and What Moves Them

By Brandon Sooknanan, Founder of StatementReady

A self-employed borrower asks, "Can I do this with 10% down?" On a bank statement loan, the honest answer is "it depends on the program and the file." Some published programs list a 90% maximum loan-to-value (LTV), and some top out lower. Where a program does go to 90%, it often ties that number to conditions such as credit score, loan amount, occupancy and property type.

This guide explains how LTV is figured, what published matrices tie the highest tiers to and what to check before you tell a borrower 10% down will work.

This is educational, not underwriting, legal or financial advice. Lenders set their own guidelines; confirm with the lender. Requirements vary by lender and program. The matrix figures below are examples from specific documents as of the date checked, and they change often. Always work from the lender's current matrix.

What 10% down means in LTV terms

LTV compares the loan amount to the property value. For conventional loans, Fannie Mae's Selling Guide says that on a purchase you "Divide the original loan amount by the property value. (The property value is the lower of the sales price or the current appraised value.)" [1] Non-QM programs set their own definitions, so check the lender's guide, but that's the common starting point.

So 10% down on a purchase is a 90% LTV only if the appraisal comes in at or above the price. If a second lien is part of the deal, lenders also look at the combined LTV (CLTV), which counts all the liens.

Made-up numbers for illustration only.

• Price $500,000, appraisal $500,000, 10% down: loan $450,000, LTV 90%.
• Price $500,000, appraisal $480,000, same loan: the value used is $480,000, so the LTV is about 93.75%. A program capped at 90% would need a smaller loan, which means more money down.

That second case is why a low appraisal can change a 10%-down plan late in the file.

What published matrices tie the highest LTV to

Every lender publishes its own matrix, and the top LTV tier usually comes with conditions. A few examples, quoted from the documents as of the date checked:

• Credit score. Angel Oak's bank statement program page (undated; checked October 28, 2026) lists a 90% maximum LTV with a minimum 720 FICO, and a 640 minimum FICO at up to 75% LTV. [2]
• Loan amount. Newfi Correspondent's Delegated Plus NQM Product Matrix (effective January 13, 2025, the version online when checked) shows a maximum of 85% for owner-occupied bank statement purchases, only at certain score and loan-amount tiers (for example, a 700 score on loans up to $1,500,000), with lower maximums at lower scores and larger loan amounts. [3] In that matrix, 10% down isn't an option on a bank statement file.
• Occupancy. The same Newfi matrix says "*2nd Homes - Max $2.5MM Loan Amount, Purchase / Rate & Term Max 80% LTV/CLTV, Cash Out Max 75% LTV/CLTV". [3]
• Property type. A&D Mortgage's 12/24-month bank statement flyer (dated 04/09/2026) lists "Up to 90% CLTV" for the program and "Condo up to 85% CLTV". [4]
• Documentation type. Newfi's matrix says "**CPA Gross Receipts, P&L Doc types Max 80% LTV/CLTV". [3]
• Transaction type. Matrices commonly show lower maximums for cash-out refinances than for purchases. See bank statement loan refinance.

Those are three lenders' published figures, not a rule, and wholesale terms may differ. Other programs use other numbers, and recent credit events, housing history and first-time homebuyer status can lower the limits or add conditions.

What else usually comes with a higher LTV

Borrower's own funds and gifts

Some programs limit how much of the down payment can be a gift at higher LTVs. Newfi's matrix says "Min 5% Borrower contribution required for Primary Residence & 2nd Home with LTV > 75%." [3] A&D's flyer says "Gift Funds for closing costs and down payment allowed". [4] Ask the lender how much has to come from the borrower's own money.

Reserves

Reserves are months of the new housing payment left over after closing. Newfi's matrix, for example, lists "3 months PITI required for loan amounts of <= $750,000" and "6 months PITI required for loan amounts of <= $1.5mm". [3] Other programs set reserves by LTV, loan amount or both.

Sourcing the down payment

The money for the down payment usually has to be documented. From the StatementReady FAQ:

"For asset verification on a conventional loan, Fannie Mae's Selling Guide (B3-4.2-01) asks for statements covering the most recent full two-month period (60 days) on a purchase and the most recent full one-month period (30 days) on a refinance. Bank statement income programs look back much further, often 12 or 24 months. Requirements vary by lender and program."

"Under Fannie Mae's guide, on a purchase a large deposit has to be sourced if the funds are needed for the transaction. On a refinance documentation isn't required, though the lender still considers whether the funds were borrowed. Read the guide section and your lender's rules. Requirements vary by lender and program."

If the down payment comes from the business account, the lender may also want to see that the business can spare it. Newfi's matrix says to "Perform a cash flow analysis to determine that the use of business funds will not have a negative impact on the business, if income from the business is being used to qualify". [3] See how to source a large deposit.

The payment and the income figure

A smaller down payment means a bigger loan and a bigger payment. That payment goes into the debt-to-income ratio, and on a bank statement loan the income side of that ratio comes from the deposits. If the income figure is tight, a 10%-down structure can work on LTV and still not work on DTI. Build the income figure first, then test the structure. See business vs personal bank statements and 12 vs 24 month bank statement loans.

A checklist before you quote 10% down

1. Pull the lender's current matrix, not a saved copy, and find the tier for this borrower's credit score, loan amount, occupancy and property type.
2. Check the documentation type. A P&L or other alternative doc type may carry a lower maximum than bank statements.
3. Plan for the appraisal. If it comes in below the price, the LTV goes up.
4. Confirm the borrower's own-funds requirement and whether gifts are allowed at that LTV.
5. Confirm reserves at that loan amount and LTV, and where they'll come from.
6. Document the down payment and reserves, and get an explanation and paper trail ready for any large deposit.
7. Build the income figure from the statements and check the payment against the program's DTI limit.

Where StatementReady fits

StatementReady doesn't calculate LTV, DTI or pricing, and it doesn't pick a program. It works on the bank statement side of the file. From the StatementReady FAQ:

"StatementReady builds an income worksheet from the uploaded statements using the months, ownership % and expense factor you enter. It's a tool to check against your lender's guidelines, not a lending decision. You and your lender make the final call on what counts as income."

"On Purchase, it flags deposits over 50% of the monthly income you enter on the loan file (threshold = that income ÷ 2; blank income → no flags)."

From the FAQ:

"No. It doesn't make a credit decision. You review the flags, and you and your lender stay responsible for checking the results against program guidelines."

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FAQ

Can you get a bank statement loan with 10% down?

Some published programs list a 90% maximum LTV, often with conditions such as a higher minimum credit score. Others top out lower. Check the lender's current matrix for this borrower's file.

What is the maximum LTV on a bank statement loan?

It varies by lender, program, credit score, loan amount, occupancy and property type. Lenders set their own guidelines; confirm with the lender.

Does a low appraisal affect a 10%-down plan?

It can. On a purchase, LTV is commonly figured on the lower of the price and the appraised value, so a low appraisal raises the LTV and may call for more money down.

Does StatementReady tell me the maximum LTV for a file?

No. It builds the income worksheet and flags items for your review. The LTV, the program and the decision are yours and the lender's.

Sources (checked 2026-10-28)

Product statements are quoted from the live StatementReady FAQ on the date checked. Source 3 is a correspondent document and source 4 is a lender flyer. Wholesale (broker) guidelines from the same companies may differ. These documents may change; confirm the current version with the lender. Fannie Mae, Freddie Mac, FHA, VA, USDA and other programs have their own requirements.

1. Fannie Mae Selling Guide, B2-1.2-01, Loan-to-Value (LTV) Ratios: https://selling-guide.fanniemae.com/sel/b2-1.2-01/loan-value-ltv-ratios
2. Angel Oak Mortgage Solutions, Bank Statement Loan program page (undated; checked 2026-10-28): https://angeloakms.com/programs/bank-statement-mortgage-program/
3. Newfi Correspondent, Delegated Plus NQM Product Matrix, effective January 13, 2025 (PDF): https://newficorrespondent.com/wp-content/uploads/2025/01/Correspondent-Delgated-Plus-NQM-Product-Matrix.pdf
4. A&D Mortgage, 12/24 Months Bank Statement flyer, dated 04/09/2026 (PDF): https://admortgage.com/wp-content/uploads/12_24_Month_Bank_Statement_AD_Products_April_9_2026.pdf
5. StatementReady FAQ: https://statementready.net/faq

Related guides

• How to source a large deposit
• Large deposits on bank statement income
• 12 vs 24 month bank statement loans
• Bank statement loan documentation checklist

For shorter answers, see the StatementReady FAQ.

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