Question 1

How do lenders calculate income from bank statements?

Accepted Answer

Lenders average your monthly deposits over 12 or 24 months, then apply a percentage (typically 50-75%) to account for business expenses. Higher percentages require clean statements.

Question 2

Can I use business bank statements instead of personal?

Accepted Answer

Some lenders accept business-only statements, others require personal accounts, and many want both. We match you with lenders who fit your documentation.

Question 3

Do bank statement loans have higher rates than conventional?

Accepted Answer

Yes. Rates run 0.5-2% higher depending on credit, down payment, and loan size. The trade-off is approval without tax returns.

Question 4

What disqualifies me on a bank statement loan?

Accepted Answer

Inconsistent income, frequent overdrafts, or too many unexplained large deposits create problems. Lenders want to see predictable cash flow patterns.

Question 5

How long does bank statement loan underwriting take?

Accepted Answer

Expect 30-45 days. Underwriters manually review every statement, which takes longer than automated conventional underwriting.

Bank Statement Loans in Burlingame: Income Verification for Self-Employed Borrowers