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McFarland's economy runs on agriculture and small business. Most self-employed borrowers here can't show W-2s. Bank statement loans solve that problem by using 12 or 24 months of deposits instead of tax returns.
As of February 2026, rate cuts are expected later this year but not immediately. That gives self-employed borrowers time to organize their bank statements while rates stabilize. Non-QM lenders continue expanding income documentation options, including newer asset types.
Bank Statement Loans in McFarland
You need 12 to 24 months of business or personal bank statements showing consistent deposits. Lenders calculate income by averaging those deposits and applying a percentage based on whether you track business expenses separately.
Minimum credit scores start around 620, but most approvals happen at 660 or higher. Expect 10-20% down depending on credit strength. Debt-to-income ratios can stretch to 50% with strong reserves.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in McFarland.
McFarland's economy runs on agriculture and small business. Most self-employed borrowers here can't show W-2s. Bank statement loans solve that problem by using 12 or 24 months of deposits instead of tax returns.
As of February 2026, rate cuts are expected later this year but not immediately. That gives self-employed borrowers time to organize their bank statements while rates stabilize. Non-QM lenders continue expanding income documentation options, including newer asset types.
You need 12 to 24 months of business or personal bank statements showing consistent deposits. Lenders calculate income by averaging those deposits and applying a percentage based on whether you track business expenses separately.
Bank statement loans are non-QM products. Most regional banks don't offer them. You need a broker with access to wholesale non-QM lenders who specialize in alternative documentation.
We work with 200+ lenders including multiple non-QM specialists. Some lenders accept personal statements only. Others require business accounts. A few now accept verified cryptocurrency holdings as reserves, though that's still emerging in early 2026.
I see McFarland borrowers stumble on inconsistent deposits. If your business has seasonal swings, use 24 months of statements instead of 12. That smooths out the income calculation and usually gets you a higher qualifying amount.
Clean up your statements before applying. Large one-time transfers look like income to underwriters. You'll spend weeks writing explanation letters. Move those deposits to a different account three months before you apply.
Bank statement loans work when 1099 loans don't. If you write off most of your income, 1099s show too little to qualify. Bank statements capture gross deposits before deductions hit your tax return.
DSCR loans skip income verification entirely for investment properties. If you're buying a rental in McFarland, that's often simpler. Bank statement loans make sense for primary residences or when you need to show income for other reasons.
McFarland home prices trend lower than Kern County averages. That helps with down payments, but appraisals can be tricky. Non-QM lenders sometimes require desktop or full appraisals even on straightforward purchases.
Agricultural income shows up as irregular deposits during harvest season. If you farm or work harvest contracts, use 24-month statements. Underwriters in other states don't understand Kern County ag cycles. We explain those patterns upfront.
Both work. Business accounts get a better income calculation because lenders apply lower expense deductions. Personal accounts still qualify but at a higher assumed expense ratio.
One or two won't kill the deal. Repeated overdrafts suggest cash flow problems and can trigger a decline. Clean up your account management before applying.
Yes, most lenders offer 12-month programs. You'll usually get a slightly higher rate. If your income is stable, 12 months works fine.
They average monthly deposits across your statement period. Then they apply a percentage reduction for business expenses, typically 25-50% depending on account type.
Most bank statement lenders don't require tax returns at all. A few ask for them to verify self-employment but don't use them to calculate income.