# Bank Statement Loan Rates: What Moves the Price

- Author: TrueBankFlow (https://truebankflow.com)
- Published: 2026-10-16
- Category: Bank statement loan programs
- Canonical: https://truebankflow.com/blog/bank-statement-loan-rates

> Why bank statement loan rates run above conventional pricing and which factors move them: credit score, LTV, lookback months and prepayment terms.
Bank statement loan rates run above conventional rates because the loans sit outside the standard agency channel, carry less documentation and are priced for investors who take more risk. A borrower's credit score, loan-to-value ratio, lookback months and prepayment terms then move the final rate up or down from the lender's base.

## Why are bank statement loan rates above conventional pricing?

Bank statement loan rates are higher because lenders cannot sell these loans to the usual agency buyers, so they price them for investors in the non-QM market. Those investors want extra yield for loans that are underwritten on deposits instead of tax returns, and for a smaller, less liquid market.

### Where the premium comes from

Three things sit behind the gap:

- **Documentation risk.** Deposits show cash coming in, not the net income a tax return reports. The lender uses an expense factor or a profit and loss statement to estimate the difference, and an estimate carries more uncertainty than a filed return.
- **Where the loan is sold.** The lender usually sells the loan to a private investor, and that investor prices the risk. The reason a bank statement loan is non-QM is covered in [why the bank statement loan is non-QM and what that changes](/blog/non-qm-bank-statement-loan).
- **Borrower profile.** Self-employed income can vary from year to year, and lenders price that variation.

The premium is not fixed. It changes with the lender, the investor and the day. Any rate you read in an article, including "bank statement loan rates today" searches, is out of date by the time the borrower applies. Ask the lender for a current rate sheet and price the actual file.

### What a rate sheet looks like

A lender's rate sheet gives a base rate for a standard scenario, then a list of adjustments. Each adjustment adds or subtracts from the price when a feature of the loan is better or worse than standard. The next sections walk through the adjustments that matter most.

## Credit score and LTV adjustments to bank statement loan rates

Credit score and loan-to-value (LTV) are the two largest adjustments on a bank statement loan rate sheet. A higher score and a lower LTV both reduce the lender's risk, so each one lowers the rate. A lower score or higher LTV does the opposite, and the two effects compound.

### How the tiers work

Lenders group scores into bands, such as 680 to 699 or 740 and above, and LTV into bands, such as up to 70 percent, 70.01 to 80 and 80.01 to 85. The rate sheet is a grid: find the score band, find the LTV band, and read the adjustment where they meet. A borrower close to a band edge can sometimes change the price by moving a few points, for example by paying down a card to raise the score or adding to the down payment to drop below an LTV line.

### An illustrative pricing table

The table below is an example of how adjustments stack. The numbers are made up to show the method. They are not a quote and do not match any lender.

| Pricing factor | Borrower feature | Example adjustment |
| --- | --- | --- |
| Base rate | Standard scenario | 8.000% |
| Credit score | 740 and above | -0.250 |
| Credit score | 680 to 699 | +0.375 |
| LTV | 70% or less | -0.125 |
| LTV | 80.01% to 85% | +0.375 |
| Lookback | 24 months | -0.125 |
| Lookback | 12 months | +0.000 |
| Prepayment | 36 month term | -0.250 |
| Prepayment | None | +0.500 |

Take a borrower with a 745 score, a 65 percent LTV, a 24 month lookback and a 36 month prepay term. Start at 8.000, then subtract 0.250, 0.125, 0.125 and 0.250 for a final example rate of 7.250. A borrower with a 690 score, an 83 percent LTV, a 12 month lookback and no prepay term lands at 8.000 plus 0.375, 0.375, 0 and 0.500, or 9.250. The two borrowers sit two full points apart on the same program.

## Does a 24 month lookback lower bank statement loan rates?

A 24 month lookback can lower the rate, but only slightly, and only with some lenders. The lookback is the number of months of statements the lender averages. Longer history shows steadier income, which some investors reward with a small credit, while others price 12 and 24 months the same.

### Why the lookback matters to price

Twenty-four months smooths out a strong or weak year, so lenders that price the difference treat it as a small risk adjustment. Where that gap shows up, in rate, LTV, reserves or loan size, is covered in [the pricing differences on a 12 month bank statement loan](/blog/12-month-bank-statement-loan-vs-24-months#pricing-differences-on-a-12-month-bank-statement-loan).

### Rate is not the only effect

A longer lookback changes the income as well as the rate. If deposits grew over two years, the 24 month average is lower than the 12 month average, so the borrower may qualify for a smaller loan even with a better rate. If deposits fell, the reverse applies. Run both and compare the monthly payment each qualifying income supports, not only the rate. [TrueBankFlow](/) reads 12 or 24 months of statements and lines them up month by month, which makes the two averages quick to compare.

## Prepayment penalties traded for lower bank statement loan rates on investment property

A prepayment penalty is a fee the borrower pays if they repay the loan early, and lenders offer a lower rate to borrowers who accept one. It is common on investment property, where the lender wants the loan to stay on its books long enough to earn back its costs.

### How the trade works

A typical structure sets a penalty term of one to five years, often declining over time. In exchange the lender takes off part of the rate, as in the example table. A borrower who plans to hold the property for the full term gains from the lower rate. A borrower who may sell or refinance early can lose the savings in the penalty.

### Questions to ask before accepting

- How long does the penalty last, and how is it calculated?
- Does it apply to a sale as well as a refinance?
- Does it apply to a partial paydown?
- How much rate does the term buy?

A borrower who expects to refinance as soon as returns support a conventional loan should be careful here. The penalty can cancel the savings from the move. [Refinancing a bank statement loan, including how a penalty is handled](/blog/bank-statement-refinance-loans) covers the arithmetic.