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Bank Statement Loans in Downey
Downey's business community includes aerospace contractors, manufacturing specialists, and retail entrepreneurs who write off everything they can. Traditional lenders see low taxable income and decline. Bank statement loans look at actual deposits.
Self-employed borrowers in Los Angeles County often can't qualify conventionally despite strong cash flow. This program uses 12 to 24 months of business or personal bank statements instead of tax returns to verify income.
You need 12 or 24 months of bank statements showing consistent deposits. Most lenders calculate income using 50% to 75% of average monthly deposits, depending on business type and deposit patterns.
Credit scores start at 620, but expect better rates above 680. Down payments run 10% to 20% depending on loan amount and credit profile. Reserves of 6 to 12 months help offset the higher perceived risk.
Not every lender offers bank statement programs, and those who do price them very differently. Some calculate income conservatively at 50% of deposits. Others go to 75% for specific business structures.
Rates run 1% to 2% higher than conventional loans. Shopping across our 200+ lenders matters here because pricing spreads can hit half a point or more. One lender might require 24 months of statements while another accepts 12.
I see Downey business owners get declined conventionally all the time despite pulling $30k monthly in deposits. They write off meals, mileage, home office, depreciation. Their AGI looks terrible but their bank account tells the real story.
Clean statements matter more than most borrowers realize. Frequent NSFs, overdrafts, or irregular deposits make underwriters nervous. They're trying to identify sustainable income patterns, not one-time windfalls or transfers between accounts.
1099 loans work if you have consistent contractor income and clean 1099 forms. Profit and loss statement loans rely on CPAs preparing financials. Bank statement loans require neither, just actual deposit history.
DSCR loans make sense for investment properties where rental income covers the mortgage. But for primary residences or when you need personal income verification, bank statements give self-employed borrowers the clearest path to approval.
Downey properties near the revitalized downtown corridor or close to the 5 and 605 freeways attract buyers with variable income. Small business owners, real estate agents, and contractors make up a significant chunk of local buyers.
Los Angeles County prices mean loan amounts often exceed conforming limits, especially for larger homes in established neighborhoods. Bank statement programs handle jumbo amounts, though down payment requirements increase above $1 million.
Yes, most lenders accept personal statements if business deposits flow through personal accounts. Some allow a mix of both to show complete income picture.
Typically 50% to 75% of average monthly deposits, depending on business type and expense patterns. Higher percentages apply to service businesses with lower overhead.
Underwriters average deposits over the full statement period to smooth fluctuations. Extremely irregular patterns may require 24 months instead of 12.
They're excluded from income calculations. Lenders look for recurring deposits that demonstrate sustainable income, not isolated windfalls or account transfers.
Expect 30 to 45 days from application to closing. Gathering clean statements upfront and explaining unusual deposits speeds the process significantly.
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.