Question 1

Can I use business bank statements instead of personal?

Accepted Answer

Yes, most lenders prefer business statements for established companies. They typically calculate income at 50-100% of average deposits depending on business type and expenses.

Question 2

How do lenders handle large one-time deposits?

Accepted Answer

Underwriters exclude non-recurring deposits like tax refunds or insurance claims. They focus on consistent monthly income patterns over the statement period.

Question 3

What interest rate premium do bank statement loans carry?

Accepted Answer

Rates typically run 0.50-1.50% higher than conventional loans. Your credit score, down payment, and cash reserves determine where you land in that range.

Question 4

Do I need reserves after closing?

Accepted Answer

Most lenders want 6-12 months of reserves. Higher loan amounts or lower credit scores push you toward the upper end of that requirement.

Question 5

Can I refinance my current mortgage with bank statements?

Accepted Answer

Absolutely. Rate-and-term refinances follow the same documentation as purchases. Cash-out refinances may require larger reserves and lower loan-to-value ratios.

Bank Statement Loans in Simi Valley: Income Verification Without Tax Returns