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 50-100%) to account for business expenses. The resulting figure becomes your qualifying income.

Question 2

Can I use business bank statements instead of personal?

Accepted Answer

Yes, most programs accept either personal or business statements. Business statements often work better if you have significant operating expenses that don't transfer to personal accounts.

Question 3

What types of deposits are excluded from income calculations?

Accepted Answer

Lenders exclude transfers between your own accounts, loan proceeds, returned items, and one-time deposits. Only regular business revenue or income deposits count toward qualifying.

Question 4

How long does bank statement loan underwriting take?

Accepted Answer

Expect 30 to 45 days from application to closing. The process takes longer than conventional loans because underwriters manually review every statement for qualifying deposits.

Question 5

Are bank statement loans available for investment properties in Colma?

Accepted Answer

Yes, bank statement programs work for investment properties with higher down payments, typically 20-25%. DSCR loans might be a better option if the property generates rental income.

Bank Statement Loans in Colma: Mortgage Solutions for Self-Employed Borrowers