Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Most lenders accept business statements but apply an expense factor — typically 50%. Your usable income is reduced to account for business costs.

Question 2

How long do I need to be self-employed?

Accepted Answer

Most lenders require at least two years of self-employment. Some allow one year with strong statements and a solid credit profile.

Question 3

Do bank statement loans have higher rates than conventional?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk. Rates vary by borrower profile and market conditions.

Question 4

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average all 12 or 24 months. Gaps and slow months pull your qualifying income down — that's the honest reality.

Question 5

Can I buy in Morgan Hill with a bank statement loan?

Accepted Answer

Yes. These loans work for purchases and refinances in Santa Clara County. Loan limits vary by lender program.

Bank Statement Loans for Morgan Hill's Self-Employed