Question 1

Can I use business bank statements in Chester?

Accepted Answer

Yes. Most lenders accept business statements. They apply an expense ratio — typically 50% — to calculate your net qualifying income.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most lenders want 24 months. Some non-QM lenders allow 12 months with strong compensating factors like reserves or a high credit score.

Question 3

Are rates higher than conventional loans?

Accepted Answer

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

Question 4

What if my deposits are seasonal?

Accepted Answer

Lenders average all 12 to 24 months of deposits. Seasonal patterns are common in Plumas County — underwriters expect this.

Question 5

How much cash reserves do lenders require?

Accepted Answer

Most non-QM lenders want 3 to 12 months of reserves. Larger reserves can offset a lower credit score or higher loan-to-value.

Question 6

Can I use a bank statement loan for a vacation rental?

Accepted Answer

For an investment property, a DSCR loan is usually a better fit. Bank statement loans are designed for primary and second home purchases.

Bank Statement Loans in Chester, CA for Self-Employed Borrowers