Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average total deposits over 12 or 24 months, then apply a 50% expense ratio. A CPA letter documenting lower business expenses increases your qualifying income.

Question 2

Can I use personal bank statements if I run my business through that account?

Accepted Answer

Yes, but lenders exclude non-income deposits like transfers between accounts or loan proceeds. Clean separation between personal and business funds speeds up underwriting.

Question 3

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

Accepted Answer

Minimum is 620, but most approvals happen at 660 or higher. Lower scores require larger down payments and show fewer deposits as income.

Question 4

How long does underwriting take for bank statement loans?

Accepted Answer

Expect 3 to 4 weeks with clean statements. Irregular deposits or missing months add 1 to 2 weeks while underwriters request explanations or additional documentation.

Question 5

Do bank statement loans have higher rates than conventional loans?

Accepted Answer

Yes, typically 0.5% to 1.5% higher depending on credit and down payment. Rates vary by borrower profile and market conditions.

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