Question 1

Do I need to be self-employed to get a bank statement loan?

Accepted Answer

Yes. This loan is designed for self-employed borrowers. Lenders want at least 2 years of self-employment history.

Question 2

Can I use personal bank statements instead of business ones?

Accepted Answer

Yes, some lenders allow personal statements. The expense factor applied to personal accounts is often lower.

Question 3

How does the lender calculate my income from bank statements?

Accepted Answer

They average your deposits over 12 or 24 months, then apply an expense factor — often 50%. A CPA letter can adjust that factor.

Question 4

Are bank statement loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 5

Can I use a bank statement loan to buy a rental property in Encinitas?

Accepted Answer

You can, but a DSCR loan may be a stronger fit for investment properties. We can compare both options for your situation.

Question 6

How long does a bank statement loan take to close?

Accepted Answer

Typically 21 to 30 days with complete documentation. Statement review adds time compared to a standard conventional loan.

Bank Statement Loans in Encinitas, CA