Question 1

Can I use both personal and business bank statements?

Accepted Answer

Yes. Most lenders accept both. Business accounts apply an expense factor — typically 50% — to estimate net income.

Question 2

Do bank statement loans have higher rates than conventional loans?

Accepted Answer

Yes, typically. Non-QM loans carry more risk for lenders. Rates vary by borrower profile and market conditions.

Question 3

How much do I need in reserves?

Accepted Answer

Most lenders want 3 to 6 months of payments in reserves. Jumbo loan amounts in Monterey often require 12 months.

Question 4

Can I use this loan to buy in Monterey and rent it out?

Accepted Answer

Bank statement loans are for primary and second homes. For rental properties, look at DSCR loans instead.

Question 5

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average your deposits over 12 or 24 months. Providing 24 months typically gives a more stable and favorable average.

Question 6

How long does closing take on a bank statement loan?

Accepted Answer

Plan for 30 to 45 days. Non-QM underwriting is more manual than conventional, so gather your documents early.

Bank Statement Loans for Monterey's Self-Employed Buyers