Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes. Lenders apply an expense factor — usually 50% — to business deposits. Personal statements often yield higher qualifying income.

Question 2

What credit score do I need in Patterson?

Accepted Answer

Most bank statement lenders require 640 minimum. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 3

Do I need to be incorporated to qualify?

Accepted Answer

No. Sole proprietors, LLCs, and S-corps all qualify. You need two years of self-employment history in the same field.

Question 4

How much do bank statement loans cost vs. conventional?

Accepted Answer

Rates run higher than conventional loans. The tradeoff is access — conventional won't work if your taxable income is too low.

Question 5

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use bank statement loans to buy, then refinance once they can show two years of stronger tax returns.

Question 6

What if my deposits vary month to month?

Accepted Answer

Lenders average all 12 or 24 months. Inconsistent deposits don't disqualify you — they just affect your average monthly income.

Bank Statement Loans for Self-Employed Buyers in Patterson