Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, most lenders accept business statements. They'll apply an expense ratio — typically 50% — to estimate your net income from deposits.

Question 2

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders require at least two years of self-employment. Some will go to one year with strong compensating factors like high reserves.

Question 3

Are bank statement loan rates higher than conventional rates?

Accepted Answer

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

Question 4

Can I buy a Napa winery or mixed-use property with this loan?

Accepted Answer

Bank statement loans are for residential properties. Commercial or agricultural purchases require different loan products entirely.

Question 5

What credit score do I need for a bank statement loan in Napa?

Accepted Answer

Most lenders start at 620 to 640. Higher scores get better rates and lower down payment requirements.

Question 6

How many months of reserves will lenders want?

Accepted Answer

Expect 6 to 12 months of reserves for most files. Jumbo loan amounts or lower credit scores often push that requirement higher.

Bank Statement Loans for Napa's Self-Employed Borrowers