Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, if you own 25%+ of the business. Lenders typically prefer personal statements because they show actual money you control. Business statements work but may require additional documentation.

Question 2

What if my deposits vary wildly month to month?

Accepted Answer

Use 24 months instead of 12 to average out seasonal swings. Vineyard and winery income naturally fluctuates with harvest cycles. Longer statement periods smooth those variations.

Question 3

Do bank statement loans work for investment properties?

Accepted Answer

Yes, but DSCR loans usually make more sense for rentals. Bank statement loans shine for primary residences and second homes where you need to prove personal income.

Question 4

How much income do underwriters count from my deposits?

Accepted Answer

Depends on the lender's expense ratio. A 50% ratio means they count half your deposits as qualifying income. Lower ratios help if you have high business margins.

Question 5

Can I qualify with less than 12 months in business?

Accepted Answer

Not for bank statement loans. You need 12-24 months of statements showing consistent deposits. New businesses should look at asset depletion or alternative documentation programs.

Bank Statement Loans for St. Helena's Self-Employed Borrowers