Question 1

Can I use personal bank statements for my business income?

Accepted Answer

Yes, if your business income runs through personal accounts. Most self-employed borrowers in Lakeport operate this way. Lenders just need to see consistent deposit patterns.

Question 2

What happens to large one-time deposits in my statements?

Accepted Answer

Depends on the lender. Some exclude them entirely. Others average them across all months. I match you to lenders whose approach maximizes your qualifying income.

Question 3

How do lenders calculate my income from deposits?

Accepted Answer

They average your deposits over 12 or 24 months, then apply an expense ratio (usually 25-50%). Higher ratios mean lower qualifying income but reflect business reality.

Question 4

Do I need to explain every deposit in my statements?

Accepted Answer

Only unusually large or irregular ones. Regular business deposits don't need letters. Underwriters focus on patterns, not individual transactions.

Question 5

Can I get a bank statement loan with a 620 credit score?

Accepted Answer

Yes, but expect higher rates and larger down payments. Most competitive pricing starts at 680. Below that you're paying for additional risk.

Bank Statement Loans in Lakeport: Income Verification Without W-2s