Question 1

How do lenders calculate income from my bank statements?

Accepted Answer

They average monthly deposits over 12-24 months, then multiply by 50-75% depending on statement quality and lender policy. Business accounts typically qualify at higher percentages than personal.

Question 2

Can I use bank statement loans for Ross properties above $3 million?

Accepted Answer

Yes, but lender availability narrows significantly above $2.5 million. Expect 25-30% down and rates potentially 1-1.5% higher than comparable conventional jumbo programs.

Question 3

What disqualifies bank statements from being used?

Accepted Answer

Frequent NSFs, consistent negative balances, large unexplained one-time deposits, or heavy cash deposits all create problems. Lenders want to see stable business activity, not erratic personal account management.

Question 4

Do I need both personal and business statements?

Accepted Answer

Most lenders accept either, not both. Business statements often calculate higher income because they exclude personal spending and show cleaner deposit patterns.

Question 5

How does this compare to stated income loans from before 2008?

Accepted Answer

Bank statement loans require full documentation of deposits—lenders verify every statement. Old stated income programs required no income proof whatsoever, which is why they no longer exist.

Bank Statement Loans in Ross: Financing for High-Income Self-Employed Buyers