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Bank Statement Loans in Commerce
Commerce sits in the industrial heart of Los Angeles County. Self-employed borrowers here run logistics firms, manufacturing operations, and wholesale distribution networks.
Traditional W-2 income verification won't work for most Commerce business owners. Bank statement loans let underwriters see actual cash flow instead of adjusted tax returns.
Many Commerce entrepreneurs write off significant expenses to minimize tax liability. That strategy tanks conventional loan applications but works fine with bank statement underwriting.
You need 12 to 24 months of consecutive bank statements from business or personal accounts. Lenders calculate income by averaging monthly deposits.
Minimum credit scores typically start at 620, but some programs require 660-680. Most lenders want 10-20% down, depending on loan amount and property type.
Self-employment must be documented for at least two years. That means business licenses, CPA letters, or other proof you've operated continuously.
Bank statement programs live exclusively in the wholesale lending channel. Your local bank or credit union won't offer them.
SRK CAPITAL shops over 200 wholesale lenders who price these loans differently. Rate spreads between lenders can hit 75-100 basis points on the same borrower profile.
Some lenders use 100% of deposits as income. Others apply a 50% or 75% haircut to account for business expenses. The calculation method changes your qualifying amount by tens of thousands.
Commerce borrowers often mix business and personal deposits in the same accounts. Clean separation helps, but most lenders can work with commingled funds if documentation is clear.
Large one-time deposits kill your average income calculation. Flag those upfront with explanation letters — capital contributions, transfers between accounts, or loan proceeds don't count as income.
Expect rates 50-150 basis points above conventional programs. That premium buys flexibility that self-employed borrowers can't get anywhere else.
1099 loans work if you have clean contractor income and minimal expenses. Bank statement loans handle messier situations where revenue and expenses both run high.
Profit & Loss statement programs require CPA preparation and often full tax returns. Bank statements skip the accountant and use raw deposit data instead.
DSCR loans work better for investment properties where rental income covers the payment. Bank statements make sense for primary residences or properties you'll owner-occupy.
Commerce property values vary wildly between industrial zones and residential pockets. Lenders often cap bank statement loans at specific dollar amounts, so jumbo properties may need different programs.
Many Commerce business owners buy in adjacent cities like Montebello or East LA while running operations here. Bank statement loans work fine for out-of-area purchases as long as employment location makes sense.
Industrial business income can swing seasonally. Underwriters average 12-24 months specifically to smooth out quarterly volatility common in Commerce's warehouse and distribution sectors.
Yes, most lenders accept business accounts. Some require both personal and business statements if funds move between accounts regularly.
Underwriters exclude transfers between your accounts from income calculations. Provide documentation showing both sides of each transfer to avoid double-counting.
Most bank statement programs don't require CPA letters. Some lenders ask for one if your income calculation is borderline or deposits look irregular.
They average total deposits over 12-24 months, then apply a percentage factor (50-100%) to account for business expenses. Higher factors mean more qualifying income.
Yes, cash-out and rate-term refinances both work. Same income documentation requirements apply as purchase transactions.
Most programs require 24 months minimum. Some lenders accept 12 months if you have prior industry experience in the same field.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.