Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, most lenders accept business statements if your income flows through them. Business statements often work better for self-employed borrowers because they show gross revenue without personal expenses.

Question 2

What if my bank statements show irregular deposits?

Accepted Answer

Lenders average deposits over 12-24 months, so occasional irregularity is fine. Consistent large deposits work better than sporadic chunks, but seasonal patterns are understandable for ag businesses.

Question 3

How much income will lenders count from my bank statements?

Accepted Answer

Lenders apply a 25-50% expense ratio to your average deposits. A contractor might see 50% expenses, while a consultant gets 25%. The final number determines your qualifying income.

Question 4

Do I need tax returns at all for bank statement loans?

Accepted Answer

No tax returns required for income verification. Some lenders want to see them to confirm you're filing, but they won't use them to calculate your qualifying income.

Question 5

What down payment do bank statement loans require in San Joaquin?

Accepted Answer

Expect 10-20% down depending on credit score and property type. Rural properties or lower credit scores push toward 20%. Strong credit and standard homes can qualify at 10% down.

Question 6

How long does underwriting take for bank statement loans?

Accepted Answer

Plan for 3-4 weeks from application to clear-to-close. Bank statement review takes longer than W-2 verification, and rural Fresno County appraisals add time.

Bank Statement Loans in San Joaquin: Financing for Self-Employed Borrowers in Fresno County