Question 1

Can I use business bank statements to qualify?

Accepted Answer

Yes. Lenders will apply an expense factor, usually 50%, to your gross deposits. Personal statements often yield higher qualifying income.

Question 2

Do I need to be incorporated to qualify?

Accepted Answer

No. Sole proprietors, LLCs, and S-corps all qualify. You just need documented self-employment for at least two years.

Question 3

How much can I borrow with a bank statement loan?

Accepted Answer

Loan limits vary by lender and your qualifying income. Many non-QM lenders go up to $3 million or more on these programs.

Question 4

Are bank statement loan rates higher than conventional?

Accepted Answer

Yes, typically. Non-QM pricing carries a premium over conventional rates. Rates vary by borrower profile and market conditions.

Question 5

Can I buy a primary home in Watsonville with this loan?

Accepted Answer

Absolutely. Bank statement loans cover primary residences, second homes, and investment properties.

Question 6

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average across the full 12 or 24 months. Seasonal dips hurt less when the annual average is strong.

Bank Statement Loans for Watsonville's Self-Employed