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Compton has a strong small business and self-employed workforce. Traditional W-2 income documentation doesn't capture how most entrepreneurs here actually earn.
Bank statement loans work well for Compton's mix of contractors, gig workers, and cash-heavy businesses. If you write off everything come tax time, you already know standard loans won't show your real income.
Most borrowers here use 12-month statements, though 24-month programs exist for lower rates. Your deposits tell the income story your tax returns hide.
Bank Statement Loans in Compton
You need 12 consecutive months of bank statements from the same account. Lenders calculate your average monthly deposits, then apply a percentage (typically 50-75%) as qualifying income.
Credit minimums start at 620, but most Compton approvals happen above 660. Expect 10-20% down for purchases, 15-25% equity for refinances.
Business statements get you better terms than personal statements. Mixing both accounts works if your business deposits flow through personal banking.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Compton.
Compton has a strong small business and self-employed workforce. Traditional W-2 income documentation doesn't capture how most entrepreneurs here actually earn.
Bank statement loans work well for Compton's mix of contractors, gig workers, and cash-heavy businesses. If you write off everything come tax time, you already know standard loans won't show your real income.
Most borrowers here use 12-month statements, though 24-month programs exist for lower rates. Your deposits tell the income story your tax returns hide.
About 30 lenders in our network handle bank statement programs. Rates run 0.75-2.5% higher than conventional loans, depending on your down payment and credit profile.
Some lenders count 100% of deposits as income. Others use 50% to account for business expenses. This calculation difference changes your buying power by $100K+ on the same statements.
Compton properties sometimes need non-QM friendly appraisers. We route your file to lenders who regularly close in South LA and won't kill deals over minor property quirks.
The biggest mistake is mixing business and personal expenses in the same account. Clean statements with clear income patterns get better underwriting treatment.
Large one-time deposits trigger questions. If you sold a car or got a tax refund during your 12-month period, document it upfront or lenders assume it's income.
Many Compton self-employed borrowers qualify for more house than they think. Your gross deposits often exceed what shows on tax returns by 40-60%.
1099 loans require those year-end forms from clients. Bank statements work when you have mixed income sources or clients who don't issue 1099s.
DSCR loans use rental income, not your personal income. Choose bank statements if you're buying a primary residence or need to show personal earning power.
Profit and loss statements need a CPA signature. Bank statements are faster and cheaper when you don't have current P&Ls or formal bookkeeping.
Many Compton small businesses run cash-heavy operations. Lenders expect this and focus on consistent deposit patterns rather than every dollar being electronically traced.
Properties under $750K usually get straightforward appraisals. The mix of renovated homes and original stock doesn't cause the valuation issues you see in some markets.
Local income sources like trucking, construction, and personal services fit bank statement programs perfectly. These industries naturally have variable monthly income that averages out over 12 months.
Yes, but business statements usually qualify you for better rates and terms. If business income flows through personal accounts, most lenders accept that with clear deposit patterns.
Lenders average all 12 months, so one slow month gets balanced by stronger months. Consistent patterns matter more than perfect monthly deposits.
Not automatically, but you'll need to explain and document them. Cash deposits are common in Compton businesses—just be ready to show they're legitimate income.
Figure 3-5 weeks from application to closing. Faster than tax return verification since underwriters just analyze deposits, not complicated business deductions.
Yes, though DSCR loans often make more sense for pure rentals. Bank statements work better when you need to qualify based on personal income across multiple properties.