Question 1

Can I use business account statements only?

Accepted Answer

Yes, most lenders accept business accounts. Some require personal accounts if you're a sole proprietor. Consistent deposits matter more than account type.

Question 2

How do lenders calculate my income from bank statements?

Accepted Answer

They total your deposits and multiply by 50-100% depending on the program. Business expense factor determines the multiplier. Higher multipliers require stronger credit or more down payment.

Question 3

What if I had irregular income during the statement period?

Accepted Answer

Lenders average monthly deposits over 12 or 24 months. A few slow months won't kill the deal. Major gaps or declining trends will reduce your qualifying income.

Question 4

Do I need to provide tax returns at all?

Accepted Answer

Most bank statement programs don't require returns. Some lenders pull transcripts to verify you filed, but they don't use them for income calculation.

Question 5

How much more expensive are these loans compared to conventional?

Accepted Answer

Rates run 0.5-1.5% higher than conventional loans. Exact premium depends on credit score, down payment, and statement program. Rates vary by borrower profile and market conditions.

Bank Statement Loans in Monte Sereno: Financing for Self-Employed Buyers