Question 1

Can I use personal bank statements instead of business statements?

Accepted Answer

Yes, many lenders accept personal statements if your business income deposits there. Mixing personal and business funds complicates underwriting, so business-only statements work better.

Question 2

What percentage of my deposits counts as income?

Accepted Answer

Most lenders use 50-75% depending on the program. Higher percentages require cleaner statements with less commingling of business and personal funds.

Question 3

How do lenders handle large one-time deposits?

Accepted Answer

They typically exclude them from income calculations. A $40K equipment sale or tax refund gets backed out, which can hurt your qualifying income significantly.

Question 4

Do I need two years of statements from the same bank?

Accepted Answer

No, but switching banks mid-period requires explanation. Consistent accounts show stability and make underwriting smoother than piecing together multiple bank histories.

Question 5

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

Accepted Answer

Some lenders go to 600 credit with 25-30% down. Below 600, bank statement programs disappear and you're looking at hard money or fixing credit first.

Question 6

How do rates compare to conventional loans?

Accepted Answer

Bank statement rates run 1.5-2.5% higher than conventional. You're paying for flexibility—the ability to qualify without tax returns showing full income.

Bank Statement Loans in Los Angeles: Income Verification Without Tax Returns