Question 1

Can I use personal bank statements instead of business accounts?

Accepted Answer

Yes, most lenders accept personal statements if you're a sole proprietor or independent contractor. They'll calculate income from deposits minus obvious personal items like transfers.

Question 2

What if my deposits vary significantly month to month?

Accepted Answer

Lenders average your deposits over 12 or 24 months. A few low months won't kill your file, but sustained inconsistency makes underwriting harder.

Question 3

Do bank statement loans have higher rates than conventional mortgages?

Accepted Answer

Yes, expect rates 0.5-2% higher than conforming loans. You're paying for flexibility when tax returns don't reflect true income. Rates vary by borrower profile and market conditions.

Question 4

How long does underwriting take for bank statement loans?

Accepted Answer

Figure 20-30 days from application to clear-to-close. The income calculation takes longer than W-2 verification, and underwriters scrutinize every deposit.

Question 5

Can I refinance my Hillsborough home with a bank statement loan?

Accepted Answer

Absolutely. Bank statement refi works the same as purchase loans. Many borrowers use them to pull equity from appreciated properties when tax returns won't support conventional cash-out.

Bank Statement Loans in Hillsborough: Financing for High-Earning Self-Employed Borrowers