Question 1

Can I use 12 months of bank statements instead of 24?

Accepted Answer

Yes, if you have strong credit and consistent deposits. Newer businesses or fluctuating income typically require 24 months for lender approval.

Question 2

Do personal bank statements work for business income?

Accepted Answer

Yes. Most lenders accept personal accounts for self-employed income. Business accounts may get lower expense ratios, which increases your qualifying income.

Question 3

What's the minimum credit score for bank statement loans?

Accepted Answer

Most programs start at 620, though rates improve significantly above 680. Scores below 640 require larger down payments and limit lender options.

Question 4

How do lenders calculate my income from deposits?

Accepted Answer

They average monthly deposits over 12-24 months, then apply an expense ratio of 25-50%. The remaining amount becomes your qualifying income.

Question 5

Will cannabis industry income affect my approval in Willits?

Accepted Answer

Some non-QM lenders accept cannabis income with proper documentation. We work with lenders experienced in Mendocino County's cannabis market and legal compliance.

Bank Statement Loans in Willits: Income Verification for Self-Employed Borrowers