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Bank Statement Loans in Lomita
Lomita's mix of small business owners and independent contractors makes bank statement loans essential here. Traditional W-2 verification doesn't work when your income comes from gig work, consulting, or running a local business.
We see strong demand from contractors serving the Harbor Area and self-employed professionals buying in Lomita's quieter residential streets. These borrowers have the income but not the tax returns that conventional underwriters want to see.
You need 12 or 24 months of business or personal bank statements showing consistent deposits. Lenders calculate your monthly income by averaging deposits and applying an expense ratio, typically 25-50% depending on your business type.
Minimum credit scores start at 620, but expect better rates above 680. Most lenders want 10-20% down and cap debt-to-income around 50%. No tax returns required, which is the entire point of this program.
Bank statement programs vary wildly between lenders on expense ratios and documentation requirements. One lender might use 50% expenses while another uses 25%, which doubles your qualifying income on paper.
Shopping this loan across multiple wholesale lenders matters more than almost any other program. Rate spreads exceed 1% between aggressive and conservative pricing, and underwriting strictness varies just as much.
Most self-employed borrowers leave money on the table by not knowing which months to include. Exclude large one-time deposits that aren't recurring income—they inflate your average and trigger documentation requests that delay closing.
If you've got both business and personal accounts, run scenarios both ways. Some borrowers qualify better using personal statements with lower expense ratios, others need business account volume to hit debt-to-income requirements.
If you file accurate tax returns showing good income, a 1099 loan or P&L program will get better rates than bank statements. Bank statement loans make sense when write-offs kill your qualifying income on paper.
For investment properties, DSCR loans skip personal income entirely and qualify on rental cash flow. That's cleaner if the property supports itself and you want to avoid sharing business financials.
Lomita's proximity to the Port of Los Angeles means we work with import/export business owners and logistics contractors who have complex income streams. Bank statement loans handle this better than traditional underwriting.
Properties in Lomita typically fall under conforming loan limits, but self-employed borrowers still use bank statement programs when tax deductions reduce qualifying income below what conventional lenders require.
Yes, and we run both scenarios to see which qualifies you better. Business statements sometimes show more income, but personal statements get lower expense ratios from certain lenders.
Lenders average your total deposits over 12 or 24 months, so irregular income works fine. Exclude one-time deposits that aren't recurring business income to avoid documentation headaches.
They total your deposits, divide by months provided, then subtract 25-50% for business expenses. A contractor might get 50% expense ratio while a consultant gets 25%.
Yes, expect 1-2% higher than conventional rates. You're paying for underwriting flexibility that doesn't require tax returns or W-2 verification.
Only large irregular deposits that spike your average income. Regular business deposits from clients don't require individual explanations.
Yes, though 24 months sometimes gets better rates and shows more income stability. Start with whichever timeline presents your income most favorably.
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.