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Bank Statement Loans in Long Beach
Long Beach self-employed borrowers hit a wall with conventional loans that demand two years of tax returns. Business owners who write off expenses aggressively show income too low to qualify, even when cash flow is strong.
Bank statement loans use 12 to 24 months of deposits to prove income instead. This works for contractors, real estate agents, consultants, and small business owners across Long Beach who can't document income traditionally.
Most lenders require 12 or 24 months of consecutive business or personal bank statements. They calculate monthly income by averaging total deposits, then apply a multiplier between 1.0x and 1.5x depending on whether you use personal or business accounts.
Credit minimums run 620 to 680 depending on the lender. Down payments start at 10% but expect 15-20% for competitive rates. Debt-to-income ratios cap around 50%, slightly higher than conventional loans.
Bank statement loans live in the non-QM space, which means your local bank won't offer them. You need lenders who specialize in alternative documentation — usually accessed through brokers with wholesale lending relationships.
Rate spreads vary widely between lenders. Some price bank statement loans 0.5% above conventional, others charge 1.5% more. Program details differ too: some accept personal statements only, others require business accounts, and a few blend both.
Long Beach business owners often choose between 12-month and 24-month statement programs. The 12-month option qualifies you on higher income if your recent deposits increased, but comes with stricter credit and down payment requirements.
Watch for how lenders treat large one-time deposits. Most exclude them from income calculations, which protects you during underwriting but can reduce qualifying income. If you received a big client payment or sold equipment recently, expect the underwriter to back it out.
If you file 1099s and show reasonable income on tax returns, 1099 loans might work better than bank statements. They price closer to conventional rates and require less documentation deep-dive into your accounts.
For rental property investors in Long Beach, DSCR loans skip personal income verification entirely. They qualify you on property cash flow instead of deposits, which works when you're buying investment real estate but doesn't help with primary residence purchases.
Long Beach home prices create loan amounts that often exceed conforming limits in coastal neighborhoods. Bank statement loans work for jumbo amounts, but expect stricter requirements above $1.5 million — higher credit scores and bigger down payments.
Self-employed borrowers here include harbor-related businesses, independent healthcare providers, and creative professionals. Each income type presents different documentation challenges. Service businesses with consistent monthly deposits underwrite cleanest.
Yes, but business statements typically qualify you at higher income multipliers. Personal accounts work when business and personal finances mix, common for sole proprietors.
Most lenders require two years minimum. Some accept 12-month programs for established businesses with strong credit and larger down payments.
No. Lenders exclude transfers between your own accounts, reimbursements, and one-time windfalls. Only genuine business revenue or income deposits count toward qualification.
Expect 0.5% to 1.5% higher rates. Exact pricing depends on credit score, down payment size, and the specific lender program you choose.
Absolutely. Rate-and-term refinances and cash-out refinances both work with bank statement documentation, following the same qualification rules as purchases.
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.