Question 1

How do lenders calculate income from bank statements in Covina?

Accepted Answer

Lenders average deposits over 12 or 24 months and apply an expense factor. Most use 50% of deposits as qualifying income, though this varies by program and lender.

Question 2

Can I use business bank statements for a Covina home purchase?

Accepted Answer

Yes, most bank statement loan programs accept business accounts. Some lenders prefer personal statements while others work with either type depending on your situation.

Question 3

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

Accepted Answer

Minimum scores typically range from 600 to 640. Higher scores above 680 generally qualify for better rates and lower down payment requirements.

Question 4

Are bank statement loans more expensive than conventional mortgages?

Accepted Answer

Rates are typically higher than conventional loans due to the flexible documentation. Rates vary by borrower profile and market conditions.

Question 5

How long does bank statement loan approval take in Los Angeles County?

Accepted Answer

Processing usually takes 21 to 45 days. Having organized statements and responding quickly to underwriter requests speeds up the timeline significantly.

Bank Statement Loans in Covina: Flexible Financing for Self-Employed Borrowers