Question 1

Can I use both business and personal bank statements?

Accepted Answer

Most lenders accept one or the other, not both. Business statements typically qualify higher income and get better pricing if your accounts show clean business activity.

Question 2

What deposits don't count as income?

Accepted Answer

Transfers between your own accounts, loan proceeds, and large one-time windfalls get excluded. Underwriters focus on consistent business revenue or client payments.

Question 3

How much higher are rates than conventional loans?

Accepted Answer

Expect 1% to 2.5% above conforming rates depending on credit, down payment, and lender. Rates vary by borrower profile and market conditions.

Question 4

Do all months need to show positive deposits?

Accepted Answer

No, but negative or low-deposit months reduce your average. Underwriters calculate income using total deposits across all months divided by the statement period.

Question 5

Can I refinance with a bank statement loan?

Accepted Answer

Yes, both rate-and-term and cash-out refinances work. Cash-out is capped at 75% to 80% LTV depending on property type and credit profile.

Bank Statement Loans in Santa Ana: Income Verification for Self-Employed Borrowers