Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average 12 or 24 months of deposits, then subtract 25-75% for business expenses. A $15k monthly average with 50% expenses yields $7,500 qualifying income.

Question 2

Can I use personal bank statements instead of business accounts?

Accepted Answer

Most lenders accept personal statements for sole proprietors. Business accounts work better for LLCs and S-corps with clear separation.

Question 3

What if I have large irregular deposits?

Accepted Answer

Document one-time deposits as non-recurring so they don't inflate your average. Lenders exclude transfers between your own accounts.

Question 4

Do bank statement loans work for investment properties in Lincoln?

Accepted Answer

Yes, but DSCR loans often price better for rentals. Bank statements make sense when you need to combine rental income with self-employment income.

Question 5

How much documentation beyond bank statements is required?

Accepted Answer

Expect to provide business licenses, CPAs letter, proof of self-employment, and standard credit/asset docs. No tax returns required.

Bank Statement Loans in Lincoln: Financing for Self-Employed Borrowers