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Bank Statement Loans in San Fernando
San Fernando's small business economy runs on entrepreneurs who don't get W-2s. Restaurant owners, contractors, and consultants file Schedule C returns that show lower income than they actually bring in.
Bank statement loans solve the self-employed borrower problem: lenders calculate income from 12-24 months of deposits instead of tax returns. That means you qualify based on actual cash flow, not what you wrote off.
Most lenders require 620-640 minimum credit for bank statement programs. Down payment starts at 10% but expect better rates at 15-20% down.
You need 12 consecutive months of business or personal bank statements showing consistent deposits. Lenders calculate income by averaging monthly deposits, then applying a 50% or 100% expense factor depending on whether you use business or personal accounts.
Bank statement loans live in the non-QM space, which means traditional banks don't touch them. You need a broker with access to specialty lenders who price these deals competitively.
Rates run 1-2% above conventional mortgages. The spread depends on credit score, down payment, and how clean your bank statements look. Erratic deposits or frequent NSFs push pricing higher.
Self-employed borrowers in San Fernando often fail conventional underwriting because their CPAs maximized deductions. A contractor showing $60K on tax returns might deposit $120K annually—bank statement loans capture that real income.
Clean up your statements before applying. Three months of consistent deposits works better than volatile swings. Separate business from personal if possible, but personal-only statements work if that's your setup.
Bank statement loans compete with 1099 and P&L programs. Bank statements work better when you have irregular contract income that doesn't fit neat 1099 documentation. P&L loans require a CPA letter, which adds cost and time.
DSCR loans make sense for investment properties, but owner-occupied buyers need bank statement programs. Asset depletion works only if you have significant liquid assets—most San Fernando borrowers qualify faster with bank statements.
San Fernando's housing stock skews toward single-family homes under $800K. Bank statement loans work well in this price range since you're not fighting jumbo loan overlays on top of non-QM requirements.
Local contractors, landscapers, and food service operators make up a large self-employed base here. These borrowers typically show strong cash flow but weak tax returns—exactly who bank statement programs serve.
Yes, personal statements work but lenders apply a higher expense ratio. Business accounts get 50% expenses deducted, personal accounts get 100% deduction before calculating qualifying income.
Lenders average all deposits across 12-24 months. Seasonal businesses qualify fine, but erratic swings with no pattern can hurt pricing or require larger down payments.
Most programs want 12-24 months of statements, not necessarily two years in the same business. You need to show income stability, not business longevity.
Underwriters exclude transfers between accounts you own. Only new deposits count toward income calculation—internal moves get backed out during review.
Some lenders allow it, but you're better off going full bank statement or full conventional. Mixing documentation types usually creates more underwriting problems than it solves.
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.