Key Takeaways
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Bank statement programs generally call for 10% to 20% down. For planning purposes, assume you’ll need 20%.
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A 10% down payment, or 90% loan-to-value (LTV), usually requires a credit score of 700 to 720 or higher.
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Buyers financing second homes or investment properties should generally expect to put down 20% to 25%.
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On one rate sheet published in July 2026, putting 20% down instead of 10% lowered the interest rate by 0.875 percentage points for the 740+ credit tier.
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Lenders differ on whether mortgage insurance is required with less than 20% down, so get the policy in writing before setting your budget.
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For example, a $600,000 purchase with 10% down may require about $100,000 in documented funds once closing costs and reserves are included.
Most borrowers will need 10% to 20% down. That is more than the minimum sometimes available for a conventional loan on a primary residence, but less than the 25% down often required for an investment property.
This page focuses on the cash needed upfront; the requirements page covers the credit, income, employment history, and documentation needed to qualify.
Choosing between 10% and 20% down affects more than your upfront costs. It can change your bank statement loan rate by about one percentage point, and you’ll need to document additional funds beyond the down payment.
Down payment by tier
Programs vary, but specialist lenders generally organize their down payment requirements around the following LTV tiers.
| Down payment | LTV | What it typically takes | Effect on pricing |
|---|---|---|---|
| 10% | 90% | A primary residence, an uninterrupted 12- to 24-month statement history, and credit generally around 700–720 or higher | Usually the most expensive tier. One published grid priced 90% LTV approximately one percentage point above 65% LTV |
| 15% | 85% | Approximately 660–680+ credit among lenders that make this tier available | A noticeable improvement over 90% LTV, although pricing remains above the standard tier |
| 20% | 80% | The standard, offered by the broadest group of lenders | Commonly provides the best widely available pricing and may lower the number of reserve months required |
| 25%–30% | 70%–75% | Often used for second homes, investment properties, larger balances, or applicants with weaker credit | Access to the lowest advertised rates. In one grid, the pricing floor occurred at 65% LTV |
| Under 10% | Above 90% | Unavailable through standard bank statement programs | n/a |
Not every published program begins at 10%. One nationwide lender sets its normal range at 20% to 30%, about twice the specialist minimum, while another establishes a 15% floor. By comparison, the bank statement loan lenders who write this product every day tend to reach 10% for applicants with strong credit.
Mortgage insurance requirements vary by lender
Conventional financing normally requires private mortgage insurance when the buyer puts down less than 20%. For bank statement mortgages, however, published guidance does not provide a consistent answer to the mortgage insurance question.
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Two consumer sources and one bank say PMI applies: A major consumer-finance publisher says a down payment below 20% triggers private mortgage insurance. One bank likewise markets a 10%-down option “with mortgage insurance.”
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One non-QM lender says it never applies: According to one specialist lender, none of its non-QM loans carries PMI, regardless of loan-to-value.
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What that means for you: Ask each lender in writing whether mortgage insurance applies. Because it adds to your monthly payment, compare offers based on the total cost, not just the interest rate.
How mortgage insurance changes the payment
Same loan. An additional monthly cost.
Illustrative $400,000 loan at 7.25% over 30 years. The mortgage-insurance example assumes an annual charge of 0.75% of the loan amount.
- Principal and interest
- $2,729 / month
- Illustrative mortgage insurance
- $250 / month
- Principal, interest and mortgage insurance
- $2,979 / month
Illustrative math, not a quote. Payments are rounded and exclude property taxes, homeowners insurance and HOA dues. Actual mortgage insurance rates, eligibility and cancellation terms vary. Ask the lender to confirm its policy in writing.
The number that actually matters: cash to close
The down payment is only one of the costs you’ll need to cover. The example below shows the complete funding picture for a $600,000 purchase with 10% down.
| Item | Example amount | Basis |
|---|---|---|
| Purchase price | $600,000 | , |
| Down payment at 10% | $60,000 | Produces a $540,000 loan at 90% LTV |
| Closing costs at 3% of loan | $16,200 | Non-QM closing costs generally range from 2% to 5% |
| Tax and insurance prepaids | $3,500 | Funds the escrow account; the actual amount depends on the state and closing date |
| Reserves: 3 months × $4,202 PITI | $12,606 | Must be verified independently of the money needed to close |
| Total documented funds required | $92,306 | The figure to use for planning |
| Same deal with 6 months of reserves | $104,912 | May apply when credit is lower or LTV is higher |
The down payment at 10% is $60,000, but the total funds you must document are much higher: with only three months of reserves, you need 54% more than the down payment; with six months, you need 75% more. Reserve funds must remain available after closing, so they cannot also be used for the down payment or closing costs.
Where the down payment can come from
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Your own funds: Lenders typically verify the money you plan to use for the down payment, closing costs, and reserves using two months of bank statements. Funds in a business account may qualify. However, withdrawing a large amount from an account also used to calculate your income could reduce its average deposits, so timing matters.
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Gift funds: Many lenders accept a gift for an owner-occupied purchase when the file includes a signed gift letter and proof of the transfer. At least one non-QM lender generally prohibits gifts, making it important to verify the policy before relying on them. Ask the lender which gift-fund documents it requires, and see our gift funds documentation checklist.
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Retirement or investment accounts: These assets may support the reserve requirement, but lenders frequently credit only about 60% to 70% of the balance.
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Seasoned funds: Money already in your account before the lender’s review period generally requires less documentation than a recent deposit. Fannie Mae’s conventional purchase guidelines use the most recent 60 days of account activity as the standard review period. Bank statement lenders set their own rules and may request an explanation for any large or unusual deposit.
Should you put more down?
Putting more money down on a bank statement loan may improve both your rate and your monthly payment.
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The rate improvement is larger: Leverage has a stronger influence on non-QM pricing than it typically does on conventional pricing. Holding the credit score constant, one published grid showed a difference of roughly one percentage point between 90% and 65% LTV.
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It lowers your payment, which lowers your DTI: The expense factor has already reduced the income available for qualification, often leaving debt-to-income as the limiting calculation. Borrowing less reduces both the payment and the resulting DTI.
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It can cut your reserve requirement: Some programs require six months of reserves with a smaller down payment, but only three months when you put 20% down. That difference can help offset the extra cash required upfront. Review our pros and cons of bank statement loans guide before directing more cash to the purchase.
There is a trade-off: money used for the down payment cannot also count toward the lender’s reserve requirement. Calculate both amounts before choosing an LTV. It’s also worth seeing whether you qualify for a lower expense factor. Our guide to how lenders calculate bank statement loan income explains how a CPA letter could increase the amount of your deposits that count as income.
Frequently Asked Questions
How much down payment do you need for a bank statement loan?
Most bank statement loans require 10% to 20% down. Some lenders allow 10% down on a primary residence with a credit score of around 700 or higher, but planning for 20% will give you more lender options. Second homes and investment properties typically require 20% to 25% down.
Can you get a bank statement loan with 10% down?
Yes. Several lenders offer 10% down for owner-occupied purchases, generally with credit around 700 to 720 or higher and a clean bank statement record covering 12 to 24 months. Putting only 10% down usually places the loan in a higher rate tier. For example, one July 2026 rate grid showed rates at 90% LTV, equivalent to 10% down, about one percentage point higher than at 65% LTV.
Is there a 95% LTV bank statement loan?
Standard bank statement programs do not generally reach 95% LTV. Among the specialist lenders reviewed, the highest published limit was 90%, while several stopped at 85% or 80%. Borrowers who need more than 90% financing will more realistically need a conventional or government-backed mortgage based on documented income, provided their tax returns support qualification.
Do bank statement loans require mortgage insurance?
Mortgage insurance requirements vary by lender and loan program. Some lenders require private mortgage insurance when you put down less than 20%, while at least one non-QM lender does not charge it at any LTV. Ask each lender to confirm its policy in writing, and include any mortgage insurance cost when comparing monthly payments.
Can I use gift funds for the down payment?
Usually, yes, when the property will be owner-occupied. Expect to provide a signed gift letter and records tracing the transfer from the donor’s account into yours. Policies are less uniform than they are for conventional mortgages, and at least one non-QM lender generally disallows gift funds. Confirm eligibility before accepting the money; reversing the transfer after underwriting begins can be difficult. Our gift funds documentation checklist lists the records to gather.
Does a bigger down payment lower my bank statement loan rate?
Yes. Bank statement loan rates can improve significantly when you put more down because lenders view a smaller loan relative to the property’s value as less risky. For example, one July 2026 rate grid showed rates at 65% LTV to be about one percentage point lower than at 90% LTV for borrowers with the same credit score. A larger down payment also lowers your monthly payment and debt-to-income ratio, which may make it easier to qualify.