Question 1

Can I use a business bank account for this loan?

Accepted Answer

Yes, but lenders apply an expense ratio — often 50% — to business deposits. Personal accounts usually produce higher qualifying income.

Question 2

Do I need to be self-employed to qualify?

Accepted Answer

Yes. Bank statement loans are designed for self-employed borrowers. W-2 employees have easier paths through conventional or FHA products.

Question 3

How long do I need to be self-employed?

Accepted Answer

Most lenders require at least two years of self-employment history. Some allow one year with strong compensating factors.

Question 4

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over agency loans. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a primary home or only investment property?

Accepted Answer

Both. Bank statement loans cover primary residences, second homes, and investment properties depending on the lender.

Question 6

What if my deposit amounts vary month to month?

Accepted Answer

Lenders average deposits across the full 12 or 24 months. Consistent patterns help — but some variation is normal and expected.

Bank Statement Loans for Hanford's Self-Employed Buyers