Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, but lenders apply an expense ratio — often 50%. Personal statements typically yield higher qualifying income.

Question 2

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

Accepted Answer

Most non-QM lenders want 640 or higher. Better scores get better rates — rates vary by borrower profile and market conditions.

Question 3

How many months of statements do I need?

Accepted Answer

Minimum 12 months. Some programs require 24. Lenders average your monthly deposits over that period.

Question 4

Are bank statement loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM loans carry higher rates due to reduced documentation. Rates vary by borrower profile and market conditions.

Question 5

Do large irregular deposits hurt my application?

Accepted Answer

They can. Lenders flag unusual deposits. Consistent monthly deposits tell a cleaner income story.

Question 6

Can I buy in La Palma with 10% down on a bank statement loan?

Accepted Answer

Some lenders allow it with strong credit. More down typically means better terms and fewer lender overlays.

Bank Statement Loans for Self-Employed Buyers in La Palma