Question 1

How do lenders calculate income from bank statements?

Accepted Answer

Lenders typically average monthly deposits over 12-24 months, then apply an expense ratio (often 25-50%) to account for business costs. The remaining amount becomes qualifying income for the loan.

Question 2

Can I use business bank statements instead of personal accounts?

Accepted Answer

Many lenders accept business bank statements, and some allow a combination of personal and business accounts. The best option depends on where your income flows and which statements show the strongest deposit patterns.

Question 3

What credit score do I need for a bank statement loan in Eureka?

Accepted Answer

Most programs require a minimum 620 credit score, with better rates available at 680 or higher. Higher scores combined with larger down payments typically secure the most competitive terms.

Question 4

Do bank statement loans work for investment properties?

Accepted Answer

Yes, bank statement loans can finance investment properties in Eureka. Down payment requirements may be higher (typically 20-25%), and some lenders limit the number of financed properties.

Question 5

How long does the bank statement loan process take?

Accepted Answer

Processing typically takes 30-45 days from complete application to closing. Having organized bank statements ready and responding quickly to lender requests helps maintain the timeline.

Bank Statement Loans in Eureka: Income Verification for California's Self-Employed Borrowers