Question 1

Do personal bank statements work or do I need business accounts?

Accepted Answer

Both work, but business statements typically qualify you at 75% of deposits while personal accounts use 50%. Using business statements can increase your qualifying income by 50%.

Question 2

How do lenders handle large one-time deposits?

Accepted Answer

Most lenders exclude obvious one-time deposits like tax refunds, loan proceeds, or asset transfers. They focus on regular income patterns over the statement period.

Question 3

Can I use bank statement loans for investment properties in Campbell?

Accepted Answer

Yes, with 20% down minimum. Some borrowers use bank statement loans for purchases and DSCR loans for refinances once the property has rental history.

Question 4

What happens if my deposits vary significantly month to month?

Accepted Answer

Lenders average deposits over 12 or 24 months, which smooths out seasonal or project-based income. Longer statement periods help if your income fluctuates.

Question 5

Are rates higher than conventional loans?

Accepted Answer

Yes, typically 1 to 2 percentage points higher. Rates vary by borrower profile and market conditions. Stronger credit and larger down payments get better pricing.

Bank Statement Loans in Campbell: Income Verification That Works for Self-Employed Borrowers