Question 1

What bank deposits count toward income qualification?

Accepted Answer

Lenders count business revenue and regular client payments. They exclude transfers between your own accounts, loans, and one-time windfalls that don't represent ongoing income.

Question 2

Can I use personal bank statements instead of business accounts?

Accepted Answer

Yes, but lenders typically apply a lower percentage to personal account deposits to account for mixed personal and business expenses. Business accounts usually qualify more income.

Question 3

How do seasonal businesses qualify with fluctuating deposits?

Accepted Answer

Lenders average deposits across 12 or 24 months to smooth seasonal variation. Some specialize in construction, hospitality, and other industries with predictable cycles.

Question 4

Do bank statement loans have higher interest rates than conventional loans?

Accepted Answer

Yes, non-QM loans typically price 1-3% higher than agency loans. The rate compensates lenders for alternative documentation and reflects individual borrower risk.

Question 5

What credit score do I need for a bank statement loan in San Juan Capistrano?

Accepted Answer

Most programs start at 620, but you'll pay premium rates. Scores above 700 access better pricing and lower down payment requirements.

Question 6

Can I refinance into a conventional loan later?

Accepted Answer

Yes, if your tax returns eventually show qualifying income or your business matures to where you can document income traditionally. Many borrowers use bank statement loans as a bridge.

Bank Statement Loans in San Juan Capistrano: Income Verification for Self-Employed Borrowers