Question 1

Can I use personal bank statements instead of business?

Accepted Answer

Yes, some lenders allow personal statements. The income calculation differs — typically a higher expense factor is applied.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most lenders require at least two years. Some will accept one year with strong statements and a prior history in the same field.

Question 3

How do lenders calculate income from my statements?

Accepted Answer

They average 12 or 24 months of deposits, then apply an expense factor. Business accounts often use a 50% factor for sole proprietors.

Question 4

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes. Rates are higher than conventional loans because of the added risk to the lender. Rates vary by borrower profile and market conditions.

Question 5

What loan amounts are available in Saratoga?

Accepted Answer

Non-QM bank statement loans can exceed conventional and FHA limits. Jumbo bank statement programs are available for Saratoga price points.

Bank Statement Loans for Saratoga's Self-Employed Buyers