Question 1

Can I use business bank statements instead of personal accounts?

Accepted Answer

Yes, most lenders accept business accounts. Some require both personal and business statements if funds move between accounts regularly.

Question 2

What if my bank statements show transfers between my own accounts?

Accepted Answer

Underwriters exclude transfers between your accounts from income calculations. Provide documentation showing both sides of each transfer to avoid double-counting.

Question 3

Do I need a CPA letter or any accountant involvement?

Accepted Answer

Most bank statement programs don't require CPA letters. Some lenders ask for one if your income calculation is borderline or deposits look irregular.

Question 4

How do lenders calculate income from my deposits?

Accepted Answer

They average total deposits over 12-24 months, then apply a percentage factor (50-100%) to account for business expenses. Higher factors mean more qualifying income.

Question 5

Can I refinance with a bank statement loan?

Accepted Answer

Yes, cash-out and rate-term refinances both work. Same income documentation requirements apply as purchase transactions.

Question 6

What if I only have six months of self-employment history?

Accepted Answer

Most programs require 24 months minimum. Some lenders accept 12 months if you have prior industry experience in the same field.

Bank Statement Loans in Commerce — Income Verification Built for Self-Employed Borrowers