Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average your monthly deposits over 12-24 months, then subtract 25-50% for business expenses. The remaining amount becomes your qualifying income.

Question 2

Can I use business bank statements instead of personal?

Accepted Answer

Yes, most lenders accept business accounts. Some programs price slightly higher for business statements versus personal deposits.

Question 3

What deposits count as income?

Accepted Answer

Regular client payments, contract deposits, and business revenue count. Lenders exclude transfers between your own accounts and one-time capital injections.

Question 4

Do I need two years of self-employment history?

Accepted Answer

Most programs want two years in the same business or industry. Some accept 12-18 months with strong cash flow and reserves.

Question 5

How much higher are bank statement loan rates?

Accepted Answer

Expect 1-2% above conventional rates. Exact pricing depends on credit score, down payment, and which lender underwrites your file.

Bank Statement Loans for San Luis Obispo Self-Employed Borrowers