Question 1

Do I need both personal and business bank statements?

Accepted Answer

It depends on the lender. Some accept personal only. Others want business statements if that's where revenue lands.

Question 2

Can I use this loan to buy in a rural Nevada City area?

Accepted Answer

Some non-QM lenders are fine with rural properties. Others aren't. We screen lenders on property type before submitting.

Question 3

How is my income calculated from bank statements?

Accepted Answer

Lenders total your deposits, then apply an expense ratio — often 50% for sole proprietors. Net deposits become your qualifying income.

Question 4

Will my tax write-offs hurt my approval?

Accepted Answer

Less than with a conventional loan. But lenders still apply expense ratios to deposits, so heavy write-offs can reduce qualifying income.

Question 5

How do bank statement loan rates compare to conventional?

Accepted Answer

They run higher. The spread varies by lender and your file strength. Rates vary by borrower profile and market conditions.

Question 6

What if I've only been self-employed for one year?

Accepted Answer

Most lenders want a two-year self-employment history. Some will work with 12 months if the file is otherwise strong.

Bank Statement Loans for Nevada City's Self-Employed Buyers