Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average your monthly deposits over 12-24 months, then apply a 25-50% expense ratio depending on your business type. A contractor might get 50% while a consultant gets 75%.

Question 2

Can I use personal bank statements instead of business accounts?

Accepted Answer

Yes, most lenders accept either. Personal statements work well for sole proprietors who run income through personal accounts. Just make sure deposits are clearly business-related.

Question 3

What if my bank statements show irregular income?

Accepted Answer

Underwriters average the deposits, so seasonal fluctuations won't kill your deal. Large gaps or declining trends create problems. Steady or growing income performs best.

Question 4

Do bank statement loans work for investment properties in Yorba Linda?

Accepted Answer

They can, but DSCR loans usually make more sense for rentals. Bank statement programs shine on primary residences where your personal income drives qualification.

Question 5

How much higher are rates compared to conventional loans?

Accepted Answer

Expect 0.5-2% higher depending on credit, down payment, and lender. A strong borrower with 25% down might see 0.75% premium while a 10% down deal could hit 2%.

Bank Statement Loans in Yorba Linda — Non-QM Financing for Self-Employed Borrowers