Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average 12 or 24 months of deposits and subtract an expense ratio based on your industry. Typical ratios run 25% for service businesses to 50% for construction or retail.

Question 2

Can I use business bank statements or only personal?

Accepted Answer

Both work, but personal statements often qualify you for more. Business accounts typically get higher expense ratios applied, which reduces your qualifying income.

Question 3

What credit score do I need for a bank statement loan in Santa Rosa?

Accepted Answer

Minimum is 620, but 680+ gets significantly better rates and terms. Higher scores also allow lower down payments and more property type flexibility.

Question 4

How long does bank statement loan approval take?

Accepted Answer

Clean files close in 21-30 days. Commingled accounts or irregular deposits add time for documentation and explanation letters.

Question 5

Do all deposits count as income?

Accepted Answer

No. Lenders exclude transfers between your own accounts, loan proceeds, and one-time deposits. Only recurring business income counts toward qualification.

Bank Statement Loans in Santa Rosa: Income Verification Without Tax Returns