Can you do a cash-out refinance with a bank statement loan?
Yes — bank statement programs generally support cash-out refinancing for self-employed borrowers, using the same deposit-based income calculation as a purchase: your qualifying deposits, averaged over 12 or 24 months of statements. Because you're pulling equity out rather than only financing a sale, cash-out refinances typically cap at a lower loan-to-value than a purchase on the same program.
Across the market, cash-out ceilings commonly run in the 75-85% band, while purchase ceilings reach 85-90% at strong credit — the exact number varies by program and credit tier. Choice Home Mortgage shops the panel to find where your file actually lands: call (949) 522-7310.
The longer answer.
The income side works exactly like a purchase. An underwriter totals eligible deposits across 12 or 24 months of statements, strips out transfers and one-off items, and averages the rest into qualifying income. Business-account programs apply an expense factor first; personal-account programs typically don't. A 24-month window is generally viewed more favorably in qualifying, while a 12-month window can suit a newer or rising-income business.
As of 2026, the market band for bank-statement cash-out ceilings runs roughly 75-85% of the property's value — genuinely a band, not a single number, because programs differ — against purchase ceilings that reach 85-90% for strong credit. Reserves are standard and tiered: roughly three months of payments at baseline, stepping up at higher loan-to-values or larger loan sizes, and more on jumbo-sized files.
What borrowers do with the cash varies — common uses across the market include reinvesting in a business, consolidating higher-cost debt, or freeing capital for another purchase. That's what the market sees, not advice on what to do with home equity; the right move depends on your full picture.
Two more notes: seasoning requirements commonly apply before a cash-out refinance, and credit floors vary widely by program — which is exactly why one lender's ceiling isn't the market's answer. Bring your statements and we'll run both the 12- and 24-month windows before shopping the file.
A number on a webpage is never a quote for your file. The figures on this page reflect what wholesale lending programs typically offer — and lender guidelines, overlays, and matrices genuinely change all the time. A range that is typical this quarter can move next quarter, and the lender that fits a given scenario best may sit outside every figure here. That churn is not a flaw in the page; it is how wholesale lending works, and it is exactly why a broker who watches the matrices beats any static webpage — including this one. For today's guidelines across the lender panel as they apply to your situation, call owner Esther Buede at (949) 522-7310 — the check costs nothing, and it is the only number that counts.
Related reading: Bank statement mortgage hub · Bank statement loan requirements · Bank statement income calculator · Bank statement loans through an LLC · Start your application
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