What is cash flow underwriting?
Cash flow underwriting is a method where the applicant’s average monthly non-payroll deposits (like Zelle, Cash App, Venmo, etc.) are used to evaluate income. This applies only if the applicant links their bank account via the Two Dots portal. Uploaded bank statements are not accepted for this.
How is income calculated under cash flow?
Two Dots looks at 3 months of linked bank transactions and calculates the monthly average of all qualifying deposits (e.g., gig earnings, cash transfers).
Understanding Bank Link Estimated Gross Income
The bank-linked estimated gross income—formerly known as “Plaid Estimated Gross Income”, categorizes all detected income from the applicant’s bank account. This includes:
Payroll deposits
Government benefits
Gig earnings
Other cash inflows
Why This Matters
Cash Flow Underwriting helps applicants without traditional paystubs or with mixed income sources (like rideshare/gig work, tips, or transfers from family) to still qualify based on actual bank activity.
Make sure your applicants are aware:
Bank linking is required for this feature
Manually uploaded statements are not enough
If Cash Flow is disabled, they’ll need to submit official tax documentation to account their income from all sources
FAQs
What are the requirements to use cash flow underwriting?
For applicants to qualify under cash flow underwriting, the property must have the feature enabled, and the applicant is required to link their bank account directly through the Two Dots portal, uploaded bank statements are not accepted as a substitute.
What if the applicant has cash income but doesn’t link a bank account?
If cash flow is enabled, bank linking is required. If cash flow is disabled, a verified tax return transcript is required instead.
What if the applicant links a business account?
We’re unable to accept linked business bank accounts for income verification. Business accounts often contain both income and expense transactions, which makes it difficult to accurately determine personal income. For verification, applicants must link a personal bank account that clearly reflects their individual earnings.
What if the applicant reports miscalculated income?
They should re-check their linked account or re-link if needed.
Can I use uploaded bank statements instead of linking?
No. Linked bank accounts are required for cash flow underwriting. Statements alone are not accepted for income verification under this method.
Who should I contact if I want cash flow underwriting enabled for a property?
If you believe this feature would be useful for your property, please contact your Property Manager or Regional to discuss enabling it. Only they can initiate the configuration change. Then you can contact us at support@twodots.net