Question 1

How far back do my bank statements need to go?

Accepted Answer

Most lenders require 12 or 24 consecutive months. You can't skip months or mix different accounts to cherry-pick good periods.

Question 2

Can I use both personal and business bank statements?

Accepted Answer

Yes, but you must be consistent across all months. Switching between account types during the statement period creates underwriting problems.

Question 3

What if my deposits vary significantly month to month?

Accepted Answer

Lenders average the deposits, but extreme volatility can trigger additional scrutiny. Consistent income patterns underwrite more smoothly than erratic deposits.

Question 4

Do bank statement loans work for investment properties in Sierra Madre?

Accepted Answer

Yes, but DSCR loans often make more sense for rentals. Bank statement programs work best for primary residences and second homes.

Question 5

How do lenders handle business expenses that show up in statements?

Accepted Answer

They apply a percentage factor to account for expenses. Business accounts typically get 50% of deposits counted, personal accounts get 75%.

Bank Statement Loans in Sierra Madre: Financing for Self-Employed Buyers