Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They average monthly deposits over 12 or 24 months, then apply a percentage. Business accounts use 50-75%. Personal accounts use 50%. Higher percentages mean more qualifying income.

Question 2

Can I use statements from multiple bank accounts?

Accepted Answer

Yes. Most lenders accept multiple accounts as long as you provide consecutive months for each. Combining accounts often increases total qualifying income by 20% or more.

Question 3

What if my deposits vary month to month?

Accepted Answer

Choose 24 months instead of 12 to average out volatility. Lenders will calculate a smoother income number. This typically adds 15-25% more qualifying income for uneven earners.

Question 4

Do bank statement loans have higher rates than conventional?

Accepted Answer

Yes. Expect rates 1% to 2% higher than conventional loans as of February 2026. Non-QM programs carry rate premiums but approval flexibility offsets the cost for self-employed borrowers.

Question 5

Can I refinance an existing mortgage with bank statements?

Accepted Answer

Yes. Cash-out and rate-term refinances both qualify. Credit score minimums stay at 660. Most lenders cap cash-out at 75% loan-to-value for Atherton properties.

Bank Statement Loans in Atherton: Income Verification for High-Net-Worth Self-Employed