Loading
Loading
Manhattan Beach attracts entrepreneurs, business owners, and high earners who don't fit traditional W-2 employment. Your tax returns show write-offs, not your actual income capacity.
This coastal market moves fast with cash-heavy competition. Bank statement loans let you close in 21-30 days without waiting for tax return analysis or CPA letters.
Most Manhattan Beach self-employed buyers understate income by 20-40% on tax returns. This loan uses gross deposits from your business accounts instead.
Bank Statement Loans in Manhattan Beach
You need 12-24 months of business or personal bank statements showing consistent deposits. Lenders calculate income by averaging monthly deposits, then applying a 25-50% expense ratio.
Minimum 620 credit score, though 680+ gets you better pricing. Down payment starts at 10% for primary residence, 15-20% for investment properties.
Self-employment must show 2+ years history in the same industry. Job changes work if you stayed in your field—switching from employed dentist to practice owner qualifies.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Manhattan Beach.
Manhattan Beach attracts entrepreneurs, business owners, and high earners who don't fit traditional W-2 employment. Your tax returns show write-offs, not your actual income capacity.
This coastal market moves fast with cash-heavy competition. Bank statement loans let you close in 21-30 days without waiting for tax return analysis or CPA letters.
Most Manhattan Beach self-employed buyers understate income by 20-40% on tax returns. This loan uses gross deposits from your business accounts instead.
Only non-QM lenders offer true bank statement programs. Your local bank won't do this—they're bound by qualified mortgage rules that require tax returns.
Pricing runs 1-2% higher than conventional rates because these loans don't get sold to Fannie Mae. Rates vary by borrower profile and market conditions.
We work with 15+ non-QM lenders who each have different underwriting approaches. One might average 12 months of deposits, another uses 24 months. That difference can swing your qualifying income by $50K+.
Manhattan Beach buyers often use 12-month statements when business grew recently, 24-month when income stayed consistent. We model both scenarios before submitting.
Clean up your statements 90 days before applying. Large one-time deposits need sourcing letters. NSF fees and negative balances raise red flags with underwriters.
If you mix personal and business expenses in one account, expect 50% expense ratio. Separate business accounts get 25% ratios, which means higher qualifying income.
This loan works for 1099 contractors, but straight 1099 loans often price better. We check both programs for every self-employed borrower.
1099 loans work better if most income comes from contractor payments. They use your 1099 forms instead of bank statements—simpler documentation, sometimes better rates.
Profit & loss statement loans require CPA-prepared financials and often need higher credit scores. They're cleaner for established businesses but take longer to underwrite.
DSCR loans ignore your personal income entirely—they qualify based on rental property cash flow. Better for investment properties in Manhattan Beach when your tax returns look weak.
Manhattan Beach condos and townhomes over $1M often need 15-20% down with bank statement loans. Single-family homes pricing higher may require jumbo bank statement products.
The beach cities see lots of self-employed tech consultants, creative professionals, and medical practitioners. These borrowers rarely show their actual earning power on tax returns.
HOA dues here run $400-800+ monthly, which counts against your debt-to-income ratio. Higher stated income from bank statements helps offset those costs for qualification.
Yes, but lenders apply higher expense ratios to personal accounts—usually 50% versus 25% for business accounts. This reduces your qualifying income significantly.
They total your deposits over 12 or 24 months, divide by the number of months, then subtract an expense ratio. The remaining amount is your qualifying income.
One-time deposits like tax refunds or loan proceeds get backed out of the calculation. You'll need to document what that deposit represents with a letter of explanation.
Yes, but expect 20-25% down payment requirements. DSCR loans often work better for investment properties since they qualify based on rental income, not your statements.
Similar timeline—usually 21-30 days to close. The main difference is reviewing bank statements instead of tax returns, which actually speeds up some files.
Not usually. Statement length affects income calculation but not pricing. Use whichever period shows stronger, more consistent income for your business.