Question 1

Can I use both personal and business bank statements?

Accepted Answer

Yes, but most lenders require you to choose one or the other. We compare both to find which qualifies you for more.

Question 2

How long do I need to be self-employed?

Accepted Answer

Most lenders require 2 years of self-employment history. Some will go to 12 months with strong compensating factors.

Question 3

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 4

What expense factor will the lender use?

Accepted Answer

Business statements typically use a 50% factor, though some lenders accept a CPA letter to justify a lower factor.

Question 5

Can I buy in Fountain Valley with 10% down?

Accepted Answer

Some non-QM lenders allow 10% down on bank statement loans. Higher down payments reduce your rate and remove MI requirements.

Question 6

Do large deposits hurt my qualifying income?

Accepted Answer

One-time large transfers can skew averages and raise red flags. Lenders average your monthly deposits, so consistency matters most.

Bank Statement Loans for Fountain Valley's Self-Employed