How is my income calculated?

Eligible deposits over 12 or 24 months are added up. For business accounts, an expense factor is subtracted. The result is averaged into a monthly qualifying income.

What is an expense factor?

It's the percentage of business deposits assumed to go to expenses. It varies by lender and business type, and some lenders allow a CPA or tax preparer letter to support a lower factor.

Do transfers between my accounts count?

Generally no. Transfers, loans and unusual large deposits are usually excluded or need explanation.

Are rates higher than a conventional loan?

Usually somewhat higher, since these are non-QM loans. I compare multiple lenders to find competitive terms for your scenario.

Can I use a bank statement loan for an investment property?

Yes, many lenders allow it, though a DSCR loan may be a better fit if the property's rent can cover the payment.

Loan Programs

Bank Statement Loans in California

Self-employed? Qualify using 12 or 24 months of personal or business bank statements instead of tax returns.

Get Pre-Approved Call (530) 414-8050

Who It's For

Is Bank Statement Loans a fit for you?

Self-employed business owners
Independent contractors and 1099 earners
Freelancers and gig workers
Real estate agents and commissioned professionals
Borrowers whose tax write-offs reduce their reported income

No Tax Returns

Income is calculated from deposits on your bank statements.

12 or 24 Months

Choose the statement period that best represents your income.

Personal or Business

Use personal or business accounts; business statements apply an expense factor.

Purchase or Refinance

Available for primary homes, second homes and investment properties.

How It Works

The Bank Statement Loans Process

Gather statements

Collect 12 or 24 months of consecutive statements.

Income analysis

Qualifying deposits are totaled and an expense factor applied for business accounts.

Pre-approval

I compare non-QM lenders and issue a pre-approval.

Underwriting

The lender verifies your business and reviews large deposits.

Close

Final approval, signing and funding.

Typical Guidelines

General Guidelines

General information only. Actual requirements vary by lender and scenario.

Statements	12 or 24 months, personal or business
Down payment	Typically higher than conventional; varies by lender
Credit score	Varies by lender
Expense factor	Varies by lender and business type, or a CPA letter may be used
Self-employment history	Often 2 years; varies by lender
Rates	Typically higher than conventional; varies by lender

Live Market

Today's Rates

Rates shown are for informational purposes, change daily, and are not a commitment to lend. Your rate depends on credit, loan amount, property and other factors.

Run the Numbers

Mortgage Payment Calculator

Home Price$400,000

Home price ($)

Down Payment (20.0%)$80,000

Down payment ($)

Interest Rate6.500%

Interest rate (%)

Loan Term30 Years

Property Tax (Yearly)

1.25% is a planning assumption, not a property-specific quote.

Homeowners Insurance (Yearly)

HOA Dues (Monthly)

Financed Upfront Fee

Enter any financed funding, guarantee or upfront insurance fee.

Estimated Monthly Payment

$2,689

Including taxes & insurance · $2,023 principal & interest

Payment Breakdown

Principal & Interest: $2,023
Property Taxes: $417
Homeowners Insurance: $250
HOA Dues: $0
PMI: $0

Loan Summary

Base Loan Amount: $320,000
Financed Upfront Fee: $0
Total Financed: $320,000
Loan-to-Value: 80.0%
Total Interest (P&I): $408,142

Estimates only, not a loan offer or commitment to lend. Rates, taxes and insurance are editable planning assumptions. Program selection is not an eligibility determination. Mortgage insurance and upfront fees vary by program and lender; enter your quoted amounts. Actual payments may differ. VA loans have no monthly mortgage insurance.

Talk to Bill about your numbers

FAQ

Bank Statement Loans FAQ

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