Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, business statements often qualify you for higher income calculations. Most lenders count 75% of business deposits versus 50% of personal deposits as qualifying income.

Question 2

What happens to large one-time deposits in my statements?

Accepted Answer

Lenders back out non-recurring deposits like transfers, gifts, or one-time windfalls. Only consistent operational deposits count toward your income calculation.

Question 3

How do rates compare to conventional loans?

Accepted Answer

Expect 1.5-3% higher rates than conventional programs. The premium pays for flexibility in income verification and faster underwriting timelines.

Question 4

Can I qualify with only 12 months of statements?

Accepted Answer

Some lenders offer 12-month programs, though 24-month statements typically get better pricing. We shop both options to find your best rate and qualification.

Question 5

Do I need to explain every deposit in my statements?

Accepted Answer

No, lenders look at average monthly deposits, not individual transactions. However, unusually large or irregular deposits may require brief explanations during underwriting.

Bank Statement Loans in Walnut Creek — Income Verification Without Tax Returns