Frequently Asked Questions
How is a bank statement loan different from a conventional mortgage?
A conventional mortgage qualifies income using W-2s and tax returns â specifically Schedule C net income for self-employed borrowers. A bank statement loan qualifies income using actual bank deposits, with an expense ratio applied. The approval criteria (credit score, down payment, reserves) are similar, but the income documentation is entirely different.
What bank account do I use for a bank statement loan â business or personal?
Both may be used. Business account deposits use the standard expense ratio (typically 50%). Personal account deposits â particularly for 1099 contractors who receive payments directly â may be used at full value or with a reduced ratio depending on the program. A Non-QM loan officer should model which account produces stronger qualifying income for your income structure.
Can I use a bank statement loan to buy an investment property as well as a primary residence?
Quick Answer: Yes, for primary residences. For investment properties, a DSCR loan â which qualifies on the rental propertyâs own income â is typically the more appropriate product. Some lenders allow bank statement loans on investment properties but DSCR programs are generally more favorable for that purpose.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades
