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Clearlake has a strong base of self-employed residents — contractors, tradespeople, small business owners. Standard W-2 loans often fail these borrowers, even when income is solid.
Bank statement loans solve that problem. They skip tax returns entirely and use 12 to 24 months of deposits to prove what you actually earn.
620+
Min Credit Score
As low as 10%
Down Payment
12–24 months
Statements Required
Non-QM
Loan Type
Bank Statement Loans in Clearlake
Lenders look at your average monthly deposits over 12 or 24 months. Business account holders typically get a 50% expense factor applied. Personal accounts use 100% of deposits.
Credit requirements vary by lender. Most want a 620 or higher. Down payments typically start at 10%, though better pricing comes with 20% or more down.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Clearlake.
Clearlake has a strong base of self-employed residents — contractors, tradespeople, small business owners. Standard W-2 loans often fail these borrowers, even when income is solid.
Bank statement loans solve that problem. They skip tax returns entirely and use 12 to 24 months of deposits to prove what you actually earn.
Lenders look at your average monthly deposits over 12 or 24 months. Business account holders typically get a 50% expense factor applied. Personal accounts use 100% of deposits.
Bank statement loans are non-QM products. Most big banks don't offer them. You won't find these at your local credit union either.
Wholesale non-QM lenders dominate this space. Rate and guideline differences between them are significant. Shopping matters more here than on any conventional loan.
The biggest mistake I see: borrowers funneling all income through one account, then wondering why qualifying income looks low. Clean, consistent deposit history across 24 months tells the best story.
If your business account shows heavy cash flow but large transfers out, lenders will scrutinize that. Keep deposits traceable and avoid mixing personal and business funds.
A 1099 loan works better if your income comes from a handful of clients who issue 1099s. Bank statement loans work better when income hits your account in mixed or irregular ways.
DSCR loans are another option — but only for investment properties. If this is your primary residence or second home in Clearlake, bank statement is likely your path.
Lake County has a large share of self-employed residents in trades, tourism, and agriculture. Many write off substantial business expenses, making their taxable income look far lower than reality.
That gap between real earnings and reported income is exactly why bank statement loans exist. Clearlake buyers who've been turned down by conventional lenders often have strong cases here.
Yes. Personal statements use 100% of deposits. Business statements typically apply a 50% expense factor to estimate income.
Yes, rates run higher than conventional loans. Rates vary by borrower profile and market conditions.
Lenders average deposits over the full 12 or 24 months. Some variation is fine — large unexplained gaps hurt more than seasonal swings.
Yes. Bank statement loans work for primary homes, second homes, and investment properties.
Expect 30 to 45 days. Non-QM underwriting takes longer than conventional. Have your statements organized before you apply.