Question 1

What bank statements do I need for a Carpinteria home purchase?

Accepted Answer

You need 12 or 24 consecutive months of personal or business bank statements showing regular deposits. Statements must be complete with all pages, not just summaries. Lenders review deposit patterns to calculate qualifying income.

Question 2

Can I use business bank statements if my company is an LLC or S-Corp?

Accepted Answer

Yes, business statements work for LLCs, S-Corps, sole proprietorships, and partnerships. You can even combine personal and business statements if that shows your income better. The lender applies appropriate expense ratios based on statement type.

Question 3

How do lenders calculate my income from bank statements?

Accepted Answer

Lenders average your monthly deposits over the statement period, then apply an expense ratio. Personal statements typically use 50% expenses, while business statements vary by industry. The remaining percentage becomes your qualifying income.

Question 4

Are bank statement loan rates higher than conventional mortgages?

Accepted Answer

Rates are typically 0.5% to 2% higher than conventional loans, reflecting the flexible documentation. Rates vary by borrower profile and market conditions. Your credit score, down payment, and reserves significantly impact your rate.

Question 5

Can I refinance my Carpinteria home with a bank statement loan?

Accepted Answer

Yes, bank statement loans work for both purchases and refinances. You can use them for rate-and-term refinances or cash-out refinances up to 80% loan-to-value. The same documentation requirements apply as purchase transactions.

Bank Statement Loans in Carpinteria: Flexible Financing for Self-Employed Homebuyers