Question 1

Do I need to be incorporated to qualify?

Accepted Answer

No. Sole proprietors qualify. You just need 12-24 months of consistent deposits showing regular business income.

Question 2

Can I use both personal and business statements?

Accepted Answer

Some lenders allow it, but most want one or the other. Your broker should run both scenarios to see which produces the higher income figure.

Question 3

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes, typically. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.

Question 4

How long do I need to be self-employed?

Accepted Answer

Most lenders require 2 years of self-employment history. A CPA letter confirming your business status is usually required.

Question 5

Is this loan available for investment properties in Avenal?

Accepted Answer

Yes. Bank statement loans can be used for investment property purchases. A DSCR loan may also be worth comparing if the property cash flows well.

Bank Statement Loans for Avenal's Self-Employed Borrowers