Question 1

Can I use only business bank statements?

Accepted Answer

Yes, if they show consistent deposits covering your income needs. Some lenders prefer seeing personal accounts too for verification, but business-only works with the right lender.

Question 2

What if I have multiple business accounts?

Accepted Answer

Provide all accounts where business income deposits. Lenders will total the deposits across accounts to calculate your qualifying income.

Question 3

Do large one-time deposits disqualify me?

Accepted Answer

No, but you'll need to document them. Lenders remove non-recurring deposits like loan proceeds or asset sales from income calculations.

Question 4

How much income do lenders count from deposits?

Accepted Answer

Typically 50-100% depending on your business type. Service businesses often get 75-100%, while product-based businesses get 50-75% to account for costs.

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 15-20% equity and follow stricter debt-to-income limits.

Question 6

What if my deposits are inconsistent month to month?

Accepted Answer

Lenders average deposits over 12 or 24 months. Seasonal businesses should provide two years of statements to show the full revenue cycle.

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