Question 1

How do lenders calculate income from bank statements?

Accepted Answer

Most lenders use 50% to 75% of average monthly deposits over 12 or 24 months. They subtract large one-time deposits and non-income transfers. Business expenses visible in statements also reduce qualifying income.

Question 2

Can I use both personal and business bank statements?

Accepted Answer

Use business accounts showing income deposits. Personal accounts with mixed transactions don't work. If you mix both, open a dedicated business account and establish six months of clean deposit history.

Question 3

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

Accepted Answer

Most lenders require 600 to 640 minimum. Higher scores above 680 unlock better rates and lower down payment options. Scores below 600 limit lender choices significantly.

Question 4

How much down payment is required?

Accepted Answer

Expect 10% minimum for primary residences, 15-20% for investment properties. Larger down payments improve rates and approval odds. Some programs require 20-25% down regardless of property type.

Question 5

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes. Rates run 1% to 2.5% above conventional mortgages. As of February 2026, expect quoted rates between 7% and 9.5% depending on profile. Rates vary by borrower profile and market conditions.

Question 6

What if my bank statements show irregular income?

Accepted Answer

Lenders average deposits over the statement period, so some variation works. Large month-to-month swings require explanation. Seasonal businesses should provide 24 months to show full income cycles.

Bank Statement Loans in San Bruno: Income Documentation for Self-Employed Borrowers