Question 1

How far back do bank statements need to go?

Accepted Answer

Most lenders require 12 months minimum. Going back 24 months can strengthen your application and sometimes improve rate pricing. Statements must be consecutive with no gaps.

Question 2

Can I use multiple bank accounts to show income?

Accepted Answer

Yes, but each account needs 12-24 months of consecutive statements. Underwriters review all accounts together to calculate total qualifying income. More accounts means more documentation.

Question 3

What if my business account shows expenses too?

Accepted Answer

Lenders apply a standard expense ratio, usually 50%, to business account deposits. Only net deposits after the ratio count toward qualifying income. Personal accounts transfer from business count at full value.

Question 4

Do bank statement loans have prepayment penalties?

Accepted Answer

Some non-QM lenders include prepayment penalties, typically 3 years with step-downs. Many borrowers refinance into conventional loans once tax returns support income. Ask about penalty terms upfront.

Question 5

How long does underwriting take for bank statement loans?

Accepted Answer

Plan for 30-45 days from application to closing. Non-QM underwriting takes longer than conventional loans due to manual income calculation. Clean bank statements and organized documentation speed the process.

Bank Statement Loans in Angels Camp — Income Verification Without Tax Returns