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Lafayette attracts business owners and self-employed professionals who write off substantial expenses. Traditional W-2 income verification doesn't work when your tax returns show $80K but you live in a $1.5M home.
Bank statement loans use actual cash flow instead of adjusted gross income. Lenders calculate your income from 12 or 24 months of deposits, capturing the real earning power tax returns hide.
Bank Statement Loans in Lafayette
You need 12 to 24 months of consecutive business or personal bank statements showing consistent deposits. Most lenders require 620+ credit scores, though some accept 600 with larger down payments.
Expect 10-20% down for primary residences, 20-25% for investment properties. Debt-to-income ratios run higher than conventional loans, typically 45-50%, because lenders recognize self-employed cash flow patterns.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Lafayette.
Lafayette attracts business owners and self-employed professionals who write off substantial expenses. Traditional W-2 income verification doesn't work when your tax returns show $80K but you live in a $1.5M home.
Bank statement loans use actual cash flow instead of adjusted gross income. Lenders calculate your income from 12 or 24 months of deposits, capturing the real earning power tax returns hide.
You need 12 to 24 months of consecutive business or personal bank statements showing consistent deposits. Most lenders require 620+ credit scores, though some accept 600 with larger down payments.
Not every lender offering bank statement loans calculates income the same way. Some average gross deposits, others use net after removing business expenses. The calculation method directly affects your buying power.
We access 200+ wholesale lenders with different underwriting approaches. One might use 100% of deposits while another applies a 50% expense ratio. Shopping across lenders can increase your qualifying income by 30-40%.
Business owners in Lafayette often maintain multiple accounts across personal and business banking. We see contractors with three checking accounts and two savings accounts. Organize statements chronologically before applying.
Irregular deposits create underwriting friction. A $200K settlement or one-time sale in month seven will trigger questions. Be ready to explain large variances with signed letters and supporting documentation.
1099 loans work if you receive consistent contractor payments from the same sources. Bank statement loans handle more complex income situations like cash businesses, multiple revenue streams, or seasonal earnings.
Profit and loss statement loans require a CPA to prepare financials, adding cost and time. Bank statements you already have. For straightforward self-employment income, bank statement programs close faster with less paperwork.
Lafayette home prices demand six-figure incomes to qualify. Bank statement loans let you use full deposit amounts rather than tax-adjusted earnings, often increasing qualifying income by 50-70% over conventional calculation methods.
Many Lafayette self-employed borrowers run S-corps or LLCs with significant pass-through deductions. Bank statement programs ignore corporate structure and focus purely on cash flow, making qualification simpler for business entities.
Yes, most lenders accept either business or personal statements. Business accounts typically show higher gross deposits but may require expense ratio deductions of 25-50%.
Most programs require 12 months minimum, though a few lenders accept 9-11 months with compensating factors like larger down payments or higher credit scores.
Only if converted to USD and deposited in the bank account being analyzed. Direct crypto holdings don't qualify as bank statement income under current guidelines.
They average deposits across the full 12 or 24 month period. Seasonal patterns are acceptable as long as the overall average supports your debt ratios.
Yes, expect rates 1.5-3% above conforming loans. Rates vary by borrower profile and market conditions based on credit score, LTV, and reserves.