Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average monthly deposits over 12 or 24 months, then subtract returns, transfers, and non-income deposits. Most programs use 50-100% of the calculated amount.

Question 2

Can I use business bank statements if I'm the sole owner?

Accepted Answer

Yes. Most lenders accept business accounts for sole proprietors and single-member LLCs. Partnerships and corporations need personal statements too.

Question 3

What if my bank statements show inconsistent deposits?

Accepted Answer

Underwriters average the full period. A few slow months won't disqualify you if the overall trend shows stable income.

Question 4

Do I need to provide tax returns with bank statement loans?

Accepted Answer

Most programs don't require tax returns at all. Some lenders pull transcripts to verify you filed but don't use them for income calculation.

Question 5

How long does underwriting take for bank statement loans?

Accepted Answer

Expect 3-4 weeks from application to clear-to-close. Manual review takes longer than automated conventional underwriting.

Bank Statement Loans in Gilroy: Income Proof for Self-Employed Buyers