Question 1

Can I use a business bank account for statements?

Accepted Answer

Yes. Most lenders accept business statements. They apply an expense ratio — typically 50% — to calculate qualifying income.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most non-QM lenders want at least 12–24 months of self-employment. Some require a business license or CPA letter to confirm it.

Question 3

How does this loan work for farm income in Merced County?

Accepted Answer

Farm income qualifies if deposits are consistent and documented. Seasonal patterns are common — lenders average the full statement period.

Question 4

Are bank statement loan rates much higher than conventional?

Accepted Answer

Yes, typically 1–2 points higher. Rates vary by borrower profile and market conditions. Your credit score and down payment size move the rate significantly.

Question 5

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average your total deposits over the full statement period. More months of history gives a more stable average — 24 months is usually better.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use bank statement loans to purchase, then refinance into conventional once they can show two years of strong tax returns.

Bank Statement Loans for Dos Palos Self-Employed Borrowers