Question 1

How many months of bank statements do I need?

Accepted Answer

Most lenders require 12 months minimum. Some programs use 24 months for a higher qualifying income average.

Question 2

Can I use my business bank account?

Accepted Answer

Yes, but lenders apply an expense factor — often 50% — to business deposits. Personal accounts avoid that reduction.

Question 3

What credit score do I need for a bank statement loan?

Accepted Answer

Most programs start at 620. You'll see better rates and terms once you're above 680.

Question 4

Do I need to be self-employed for 2 years?

Accepted Answer

Most lenders want a 2-year self-employment history. A CPA letter or business license helps verify that.

Question 5

How are bank statement loans different from conventional loans?

Accepted Answer

Conventional loans require W-2s or tax returns. Bank statement loans are non-QM — income is verified through deposits, not tax filings.

Question 6

Are rates higher on bank statement loans?

Accepted Answer

Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Bank Statement Loans for El Cajon's Self-Employed