We help self-employed borrowers and business owners in California qualify for home loans using bank statements instead of tax returns. A Bank Statement Loan offers flexible income verification, competitive rates, and a smooth approval process — making homeownership possible even with complex finances.
Bank Statement Loans in California
About
What Is a Bank Statement Loan?
A Bank Statement Loan is a non-QM (non-qualified mortgage) designed for self-employed individuals, freelancers, and entrepreneurs who may not show enough income on tax returns. Instead of W-2s or tax forms, lenders use 12–24 months of personal or business bank statements to calculate qualifying income. This loan is ideal for borrowers with strong cash flow but write-offs that reduce taxable income.
Eligibility Criteria
Who Is Eligible for a Bank Statement Loan in California?
You may qualify for a Bank Statement Loan if you meet the following requirements:
- Self-Employed or Business Owner: At least 1–2 years in business
- Bank Statements: 12 or 24 months (personal or business)
- Credit Score: Typically 620+
- Down Payment: Usually 10–20%
- Debt-to-Income Ratio: Calculated using bank deposits
- Primary, Second, or Investment Property: Allowed
Benefits
Benefits of a Bank Statement Loan
No Tax Returns Required
Qualify without W-2s, 1099s, or tax filings
Flexible Income Qualification
Uses real cash flow, not taxable income
Ideal for Self-Employed Borrowers
Perfect for contractors, freelancers, and entrepreneurs
Multiple Property Types Allowed
Primary homes, vacation homes, and investments
Competitive Interest Rates
Strong options for non-QM borrowers
Fast & Simple Process
Digital documentation and faster approvals
Types
Types of Bank Statement Loans We Offer
12-Month Bank Statement Loan
Best For: Borrowers with recent income growth
Highlights: Faster qualification
24-Month Bank Statement Loan
Best For: Stable long-term income earners
Highlights: Lower risk and better rates
Personal Bank Statement Loan
Best For: Sole proprietors
Highlights: Simple documentation
Business Bank Statement Loan
Best For: LLCs & corporations
Highlights: Expense factor applied
Comparison
Bank Statement Loan vs. Conventional Loan
Bank Statement Loan
- Income Verification: Bank statements
- Tax Returns Required: No
- Credit Flexibility: Higher
- Best For: Self-employed borrowers
- Loan Type: Non-QM
Conventional Loan
- Income Verification: W-2s & tax returns
- Tax Returns Required: Yes
- Credit Flexibility: Lower
- Best For: Salaried employees
- Loan Type: QM
FAQs
Frequently
Asked Questions
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
Can I use business bank statements only?
Yes, many borrowers qualify using only business bank statements with an expense factor applied.
Are bank statement loans more expensive?
Rates may be slightly higher than conventional loans, but they offer unmatched flexibility for self-employed borrowers.
How is income calculated from bank statements?
Lenders review 12 or 24 months of deposits from your personal or business bank statements and calculate an average monthly income. For business accounts, an expense factor may be applied to estimate usable income.
Can I qualify if I recently became self-employed?
Most lenders require at least 1–2 years of self-employment, but exceptions may be available if you have prior experience in the same industry or strong cash reserves.
Still have a question?
JLLendingTeam: A collaborative group specializing in providing tailored lending solutions and financial support for clients.
JL Lending Team
Why Choose Us for Bank Statement Loans?
Local Experts
Serving California’s veterans with deep knowledge of the state’s housing market.
Fast, Tech-Enabled Process
Apply, upload documents, and track your loan online.
Personalized Guidance
We’re not tied to one lender — we find the best loan for you.
Contact Us
Ready to Get Started with Your Bank Statement Loan?
Take the stress out of qualifying for a mortgage as a self-employed borrower. Our Bank Statement Loan programs are designed to help you use real cash flow — not tax returns — to buy or refinance your California property.
We’ll guide you every step of the way — from income review to closing.