Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Lenders apply an expense ratio — typically 50% — to business deposits. We calculate both and use whichever qualifies you for more.

Question 2

Do I need to be self-employed for a bank statement loan?

Accepted Answer

Yes, these loans are designed for self-employed borrowers. You'll need to show two years of self-employment history.

Question 3

How many months of statements do lenders require?

Accepted Answer

Most programs require 12 or 24 months. A 24-month average smooths out irregular deposit months and can strengthen your file.

Question 4

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes, non-QM rates run higher than conventional. The tradeoff is qualifying based on actual cash flow, not reported tax income. Rates vary by borrower profile and market conditions.

Question 5

What credit score do I need in Merced County?

Accepted Answer

Most lenders set the minimum at 620. Higher scores get better rates and may reduce required reserves.

Question 6

Can I buy in Atwater with a bank statement loan?

Accepted Answer

Yes. These loans work for purchases and refinances. Down payment requirements typically start around 10-20%.

Bank Statement Loans for Atwater's Self-Employed Borrowers