Question 1

How do lenders calculate income from bank statements?

Accepted Answer

They total deposits over 12 or 24 months, then apply an expense ratio based on your industry — typically 25-50%. Higher ratios mean lower qualifying income.

Question 2

Can I use personal bank statements instead of business accounts?

Accepted Answer

Yes. Personal statements work if they show business income deposits. Business accounts often produce higher qualifying income due to clearer expense tracking.

Question 3

What if my bank statements show large one-time deposits?

Accepted Answer

Lenders exclude non-recurring deposits like loans, gifts, or asset transfers. Only regular business income counts toward qualification.

Question 4

Do bank statement loans have higher rates than conventional loans?

Accepted Answer

Yes. Rates run 1-2% higher than conventional programs due to increased lender risk. Strong credit and larger down payments reduce the rate premium.

Question 5

How long does underwriting take for bank statement loans?

Accepted Answer

Expect 3-5 weeks with clean documentation. Messy statements with unexplained deposits or account mixing add time.

Question 6

Can I refinance using bank statement income verification?

Accepted Answer

Yes. Rate-and-term refinances and cash-out refinances both qualify. Same income documentation rules apply.

Bank Statement Loans in Oxnard: Income Verification That Works for Self-Employed Borrowers