Question 1

Can I use business bank statements if I'm self-employed?

Accepted Answer

Yes, most lenders accept business accounts for sole proprietors, LLCs, and S-corps. Some programs let you combine personal and business statements to show full income picture.

Question 2

How do lenders calculate income from my deposits?

Accepted Answer

Lenders average your monthly deposits over 12 or 24 months, then apply a percentage (usually 50-75%). The exact method varies by lender and affects your buying power significantly.

Question 3

What credit score do I need for bank statement loans in Murrieta?

Accepted Answer

Most programs require 620-640 minimum. Borrowers with 700+ scores get better rates and lower down payment requirements, sometimes as low as 10%.

Question 4

Do bank statement loans cost more than conventional mortgages?

Accepted Answer

Yes, expect rates 0.50-1.50% higher depending on credit and down payment. The tradeoff is approval using actual cash flow instead of tax return income.

Question 5

How far back do my bank statements need to go?

Accepted Answer

Programs typically require 12 or 24 months. Some lenders use 12 months for stronger borrowers with high credit scores and larger down payments.

Bank Statement Loans in Murrieta — Income Verification for Self-Employed Borrowers