Question 1

How much income will lenders calculate from my bank statements?

Accepted Answer

Most lenders use 50% to 75% of average monthly deposits. Higher percentages apply to service businesses with low overhead. Percentage depends on business type and expense patterns.

Question 2

Can I use business bank statements instead of personal?

Accepted Answer

Yes, though personal statements usually work better. Business accounts show more irregular deposits and business expenses that complicate income calculations.

Question 3

What deposits don't count toward qualifying income?

Accepted Answer

Transfers between your accounts, loan proceeds, capital contributions, and large one-time deposits get excluded. Only recurring business income counts toward qualification.

Question 4

Do I need both 12 and 24 months of statements?

Accepted Answer

You choose one program or the other. Use 12 months when recent income is higher. Use 24 months for more stability if income varies significantly.

Question 5

How long does underwriting take with bank statement loans?

Accepted Answer

Expect 3 to 5 days longer than conventional loans. Underwriters manually review every statement and calculate qualifying deposits, which takes time.

Question 6

Can I refinance with a bank statement loan?

Accepted Answer

Yes, both rate-term and cash-out refinances work. Same qualification rules apply as purchase loans including credit, reserves, and down payment seasoning requirements.

Bank Statement Loans in San Carlos: Financing for Self-Employed Tech Founders and Business Owners