Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average total deposits over 12 or 24 months. Business accounts get an expense factor applied first — often cutting the figure by 50 percent.

Question 2

Can I use both personal and business bank statements?

Accepted Answer

Yes. Many lenders accept either or both. Personal statements typically produce a higher qualifying income since no expense factor is applied.

Question 3

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes — non-QM loans carry a rate premium. Rates vary by borrower profile and market conditions, but expect to pay more than a conventional rate.

Question 4

What credit score do I need in San Jose?

Accepted Answer

Most lenders want at least 620 to 660. Higher scores open up better pricing, especially on jumbo non-QM loans common in Santa Clara County.

Question 5

How many months of statements do I need?

Accepted Answer

Minimum is 12 months. Most lenders prefer 24 months — it gives a fuller income picture and often results in a higher qualifying income.

Question 6

Does my down payment affect my rate?

Accepted Answer

Yes. More down typically means better pricing on non-QM. At 20 to 25 percent down, you access more lenders and stronger rate tiers.

Bank Statement Loans for San Jose's Self-Employed