Question 1

Can I use personal bank statements if I run a sole proprietorship?

Accepted Answer

Yes, personal accounts work fine for sole proprietors. Lenders just need to see consistent deposits that match your business activity over 12 or 24 months.

Question 2

What if my bank statements show income but I wrote off most of it on taxes?

Accepted Answer

That's exactly why these loans exist. Lenders use gross deposits, not taxable income. Your write-offs don't hurt you here.

Question 3

Do all deposits count toward qualifying income?

Accepted Answer

No. Transfers between your own accounts get excluded. Lenders only count business revenue, client payments, or verifiable income deposits.

Question 4

How long does underwriting take for bank statement loans?

Accepted Answer

Plan for 3-4 weeks. Non-QM underwriters manually review every statement. It takes longer than automated conventional underwriting.

Question 5

Can I refinance with a bank statement loan?

Accepted Answer

Yes, rate-and-term refinances work the same as purchases. Cash-out refinances require 20-25% equity and price slightly higher.

Bank Statement Loans in Crescent City — Income Verification for Self-Employed Borrowers