Question 1

Do I need to be incorporated to qualify?

Accepted Answer

No. Sole proprietors qualify. You need to show you're self-employed, usually with a business license or CPA letter.

Question 2

Can I use personal and business statements together?

Accepted Answer

Some lenders allow it. Most want one or the other. We'll show you which approach qualifies more income before you apply.

Question 3

How does the expense ratio work?

Accepted Answer

Lenders assume a portion of your deposits cover business expenses. A 50% ratio means $20K in deposits counts as $10K in income.

Question 4

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes, typically. Non-QM products carry more risk for lenders. Rates vary by borrower profile and market conditions.

Question 5

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average the full 12 or 24 months. Seasonal swings are common — they don't automatically disqualify you.

Question 6

Can I use this loan to buy in Indio as a primary residence?

Accepted Answer

Yes. Bank statement loans work for primary homes, second homes, and investment properties depending on the lender.

Bank Statement Loans for Self-Employed Buyers in Indio