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Bank Statement Loans in Santa Clarita
Santa Clarita has a strong entrepreneurial base. Business owners and contractors make up a significant slice of local homebuyers.
Bank statement loans solve the W-2 problem. If your tax returns don't reflect actual cash flow, this program uses deposits to prove income.
We see these loans fund across all price points in Santa Clarita. From Valencia condos to Stevenson Ranch single-families, underwriters care about deposits, not deductions.
You need 12 to 24 months of business or personal bank statements. Lenders average deposits and apply a percentage to calculate income.
Minimum credit score runs 620 to 680 depending on down payment. Most programs want 10% to 20% down, though some allow as little as 10%.
Debt-to-income ratios go higher than conventional loans. We regularly get borrowers approved at 50% DTI when deposits support it.
Self-employment needs to be ongoing. Most lenders want two years in the same business or industry, documented through statements.
About 30 of our 200+ wholesale lenders offer bank statement programs. Each has different calculation methods for income.
Some lenders average gross deposits. Others deduct business expenses at a flat rate like 25% or 50%. The math can swing your buying power by $100K.
Rate pricing sits 0.75% to 1.5% above conventional loans. That spread tightens with higher credit scores and larger down payments.
Overlays vary wildly between lenders. One might reject recent tax liens while another approves with explanation letters. Shopping matters here.
Clean up statements before you apply. Large unexplained deposits trigger underwriter questions. Transfers between your own accounts get scrutinized.
Personal statements work better for sole proprietors. Business account statements suit LLCs and S-corps, but mixing personal and business funds creates headaches.
Timing matters with tax season. Applying right after filing returns when cash is tight can hurt income calculations. Plan around quarterly cycles.
This loan makes sense when tax returns understate income by 30% or more. Smaller gaps might qualify conventionally with proper documentation.
1099 loans work if you have clean contractor income. Bank statement loans handle messier cash flow and multiple income streams.
Profit and loss statements can work with one year seasoning versus two for bank statements. But P&L loans cost more and require CPA preparation.
DSCR loans make sense for Santa Clarita investment properties. Bank statement loans serve primary residences and second homes better.
Asset depletion loans suit retired business owners. Active entrepreneurs get better rates with bank statement programs.
Santa Clarita business owners often show lower taxable income due to write-offs. This program lets you qualify on actual revenue flow.
Property values across Valencia, Saugus, Canyon Country, and Stevenson Ranch all work with bank statement financing. No price ceiling specific to the loan type.
Many Santa Clarita self-employed borrowers have seasonal income fluctuations. Using 24 months of statements instead of 12 smooths those swings for better qualification.
Los Angeles County transfer taxes and fees apply the same regardless of loan type. The non-QM structure doesn't change closing cost calculations.
Most average 12 or 24 months of deposits, then multiply by 50% to 100% depending on whether you use personal or business accounts. Business accounts typically get lower percentages.
Yes, though DSCR loans usually price better for pure rentals. Bank statement loans work well for second homes or properties you'll occupy part-time.
Minimum is 620, but you'll get much better rates at 680 or higher. Every 20-point increment above 680 improves your pricing.
Some lenders want returns for context even though they don't use them for income calculation. Others skip returns entirely and underwrite purely on deposits.
Expect 3 to 5 weeks from application to closing. The statement review adds time versus conventional loans, especially if deposits need explanation.
Absolutely. Rate-and-term refinances and cash-out refinances both work. Same qualification standards apply as purchase transactions.
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.