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Bank Statement Loans in Santa Monica
Santa Monica's economy runs on entrepreneurs, freelancers, and small business owners who can't produce W-2s. Standard mortgages shut out these borrowers even when they earn well above median income.
Bank statement loans solve this by using 12 to 24 months of deposits to verify income. You skip the tax return maze and qualify based on actual cash flow, not what you report to the IRS.
Most lenders require 620 minimum credit score, though some accept 580 with larger down payments. You'll need 10-20% down for primary residences, more for investment properties.
Business owners showing consistent monthly deposits qualify easiest. Lenders typically average your deposits over 12 or 24 months, then apply a percentage (usually 50-75%) to calculate qualifying income.
Personal and business accounts both work, but business statements often yield higher qualifying income. Mix irregular contractor payments with steady client retainers and lenders still see the full picture.
About 30 lenders in our network offer bank statement programs, each with different calculation methods. Some use gross deposits, others net out business expenses. This variation can shift your qualifying income by 30% or more.
Rates run 0.5-2% above conventional depending on credit, down payment, and loan amount. Santa Monica's higher property values mean even small rate differences cost thousands annually.
Portfolio lenders often beat aggregators on flexibility. They'll consider accounts with large seasonal swings or newer businesses that traditional underwriting rejects outright.
Santa Monica borrowers often mix personal and business funds in ways that complicate income calculation. Clean up your accounts 60 days before applying. Separate personal transfers from business revenue.
The 12-month versus 24-month statement choice matters. Twelve months works if your income trended up recently. Twenty-four months smooths out volatility but can dilute strong recent growth.
I've seen tech consultants and creative professionals with $500K+ annual income get denied at traditional banks, then approved in 10 days using bank statements. The documentation burden drops dramatically.
1099 loans work if you have clear contractor income documentation. Bank statement loans handle messier situations with multiple income streams, cash clients, or cryptocurrency payments.
Profit and loss statements require a CPA signature and two years of business history. Bank statements need no accountant involvement and work with businesses under two years old.
DSCR loans make sense for pure investment properties where rental income covers the mortgage. Bank statement loans work for primary residences and second homes where personal income matters.
Santa Monica's median home prices push many borrowers into jumbo territory. Bank statement jumbos exist but require 20-25% down and reserve requirements that can exceed $100K in liquid assets.
The city's entertainment industry, tech sector, and professional services create ideal bank statement borrower profiles. Variable monthly income from project work fits this program perfectly.
Condos near the beach come with high HOA fees that affect debt-to-income ratios. Bank statement lenders often allow higher DTI than conventional loans, but those monthly assessments still count.
You need 12 or 24 months of personal or business bank statements showing regular deposits. No tax returns or W-2s required, though lenders may ask for a CPA letter confirming self-employment.
Lenders average your monthly deposits over the statement period, then apply a percentage (typically 50-75%) to account for business expenses. Higher percentages apply to service businesses with lower overhead.
Yes, but expect 20-25% down minimums and stricter reserve requirements. DSCR loans often work better for pure investment properties since they qualify based on rental income, not personal funds.
Most lenders require 620 minimum, though some accept 580 with larger down payments and higher rates. Above 700 gets you the best pricing, especially on jumbo amounts common in Santa Monica.
Underwriting typically takes 7-14 days once you submit clean statements. The process moves faster than conventional loans since there's no employment verification or tax transcript analysis required.
No. Lenders average deposits over 12-24 months specifically to smooth seasonal variation. Consistent annual totals matter more than month-to-month stability for most programs.
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.