Loading
Loading
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.
Bank Statement Loans in Lomita
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.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options 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.
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.