Loading
Loading
Calabasas attracts business owners, entertainment professionals, and consultants who control their income but struggle with traditional mortgage documentation.
Bank statement loans skip W-2s and tax returns. Lenders calculate income from 12 to 24 months of personal or business bank deposits instead.
This matters in Calabasas where self-employed borrowers often write off substantial expenses. Your tax return shows $80K income but your bank statements prove $200K cash flow.
Most borrowers here use 12-month programs if deposits are consistent. The 24-month option smooths out seasonal income fluctuations common in consulting and creative industries.
Bank Statement Loans in Calabasas
You need 640 credit minimum for most programs. Some lenders approve 600 scores but charge higher rates.
Down payments start at 10% for primary residences. Investment properties require 20-25% depending on credit and loan amount.
Self-employment history matters. Most lenders want two years in the same business or industry. One year works if you have extensive experience in your field.
Bank statements must show regular deposits. Lenders flag large one-time transfers or inconsistent income patterns that suggest instability.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Calabasas.
Calabasas attracts business owners, entertainment professionals, and consultants who control their income but struggle with traditional mortgage documentation.
Bank statement loans skip W-2s and tax returns. Lenders calculate income from 12 to 24 months of personal or business bank deposits instead.
This matters in Calabasas where self-employed borrowers often write off substantial expenses. Your tax return shows $80K income but your bank statements prove $200K cash flow.
Bank statement lenders calculate income differently. Some use gross deposits. Others subtract business expenses if you provide a CPA letter.
The calculation method changes your qualifying income by 30-50%. A broker tests multiple lenders to find which formula maximizes your buying power.
Rates run 1-2% higher than conventional loans. Expect 7.5-9% in current conditions compared to 6.5-7.5% on QM products.
Not every non-QM lender funds in California. We access 30+ bank statement programs with different rate sheets, underwriting standards, and documentation requirements.
Half my Calabasas clients who think they need bank statement loans actually qualify conventional. Run the numbers both ways before paying non-QM pricing.
Timing matters. If you can delay purchase six months and reduce tax write-offs, you might qualify conventional and save $50K+ over the loan term.
Clean bank statements before you apply. Lenders scrutinize every large deposit. Unexplained $10K transfers trigger underwriting questions that delay closing.
Business account statements work better for most borrowers. Personal accounts mix business and personal expenses which complicates income calculation and lowers qualifying amounts.
1099 loans work for independent contractors with consistent 1099 income. Bank statements fit business owners with entity structures that hide income on tax returns.
Profit and loss loans require a CPA to prepare P&L statements. Bank statement programs skip that step but scrutinize deposits more carefully.
DSCR loans ignore your income entirely. They qualify based on rental property cash flow. Use those for investment properties when personal income complicates qualification.
Asset depletion converts investment accounts into qualifying income. Better for retirees or high-net-worth buyers who don't need to prove business income.
Calabasas home prices favor established business owners over startup founders. Most properties require $1M+ purchase prices that need substantial income documentation.
Entertainment industry income creates unique challenges. Residuals and project-based earnings show up inconsistently in bank statements even when annual income is high.
The Calabasas market moves quickly. Bank statement loans take 30-45 days to close versus 21 days for conventional. Factor extra time into your offer strategy.
HOA fees in gated communities impact debt-to-income ratios. Some Calabasas properties carry $500-800 monthly HOA dues that reduce maximum loan amounts by $75-100K.
Yes. Business statements often work better because they separate business revenue from personal expenses. Lenders apply a percentage to gross deposits to calculate qualifying income.
Lenders require documentation for deposits over $1K. If you can't source a deposit, underwriters exclude it from income calculation. Clean statements before applying.
Most programs require 12 or 24 months from your primary business account. You don't need statements for personal checking accounts unless you're using those to document income.
Varies by program. Most use 50% of gross deposits. Some apply higher percentages if you provide a CPA expense ratio letter showing actual business costs.
Yes. If you have part-time W-2 income plus self-employment, lenders add both sources. The W-2 portion uses standard documentation while business income needs bank statements.
No. Bank statement loans ignore tax returns entirely. Write-offs that lower taxable income don't affect qualification since lenders only review cash deposits in your accounts.