Question 1

What bank statements do lenders accept for income verification?

Accepted Answer

Lenders typically accept personal or business checking accounts showing regular deposits. Most require consecutive monthly statements without gaps. Some programs allow a combination of personal and business accounts.

Question 2

How do lenders calculate income from bank statements?

Accepted Answer

Lenders average total monthly deposits over 12 or 24 months, then subtract an expense factor of 25% to 50%. The remaining amount becomes your qualifying income for debt-to-income calculations.

Question 3

Can I use bank statement loans for investment properties in Fowler?

Accepted Answer

Yes, bank statement loans work for primary residences, second homes, and investment properties. Investment properties typically require larger down payments, usually 20% to 25% minimum.

Question 4

What if my business is new or I have less than two years of statements?

Accepted Answer

Some lenders accept one year of self-employment with 12 months of bank statements. Programs for newer businesses exist but may require larger down payments or have stricter credit requirements.

Question 5

Are bank statement loan rates higher than conventional mortgages?

Accepted Answer

Yes, rates vary by borrower profile and market conditions but typically run 1% to 2% above conventional rates. The trade-off is simplified income documentation and approval for self-employed borrowers.

Bank Statement Loans in Fowler: Income Verification for Self-Employed Borrowers