Question 1

Can I use personal and business statements together?

Accepted Answer

Some lenders allow it, but most want one or the other. Mixing accounts complicates the income calculation and can slow approval.

Question 2

Do I need to be self-employed for 2 years?

Accepted Answer

Most lenders require at least 2 years of self-employment. Some allow 1 year with strong compensating factors like a high credit score or large down payment.

Question 3

What counts as a qualifying deposit?

Accepted Answer

Regular business income deposits count. Large one-time transfers, loans, or family gifts usually don't. Lenders look for consistent, recurring deposits.

Question 4

How does the expense ratio affect my loan amount?

Accepted Answer

Business statements typically get a 50% expense ratio applied. If your monthly deposits average $10,000, lenders count $5,000 as income.

Question 5

Are rates higher than conventional loans?

Accepted Answer

Yes. Bank statement loans are non-QM and carry more risk for lenders. Expect rates above conventional pricing. Rates vary by borrower profile and market conditions.

Question 6

Can I buy investment property with a bank statement loan in Shasta Lake?

Accepted Answer

Yes, but a DSCR loan may price better for investment deals. Bank statement loans work best for primary residences and second homes.

Bank Statement Loans in Shasta Lake, CA