Loading
Loading
West Hollywood attracts creative professionals, consultants, and entrepreneurs who earn through freelance work and business ownership. Traditional W-2 income verification doesn't capture how most people here actually make money.
Bank statement loans let you qualify using 12-24 months of deposits instead of tax returns. This works better for borrowers who write off expenses aggressively or have fluctuating income streams typical in entertainment and creative industries.
Bank Statement Loans in West Hollywood
You need 12-24 months of consistent bank statements showing regular deposits. Lenders calculate income by averaging your deposits and applying an expense ratio, typically 25-50% depending on business type.
Most programs require 10-20% down and credit scores starting at 620, though 680+ gets better rates. You must show you've been self-employed for at least two years in the same line of work.
Personal and business accounts both work. Underwriters look at total deposit activity, not just what you claim as taxable income on returns.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in West Hollywood.
West Hollywood attracts creative professionals, consultants, and entrepreneurs who earn through freelance work and business ownership. Traditional W-2 income verification doesn't capture how most people here actually make money.
Bank statement loans let you qualify using 12-24 months of deposits instead of tax returns. This works better for borrowers who write off expenses aggressively or have fluctuating income streams typical in entertainment and creative industries.
You need 12-24 months of consistent bank statements showing regular deposits. Lenders calculate income by averaging your deposits and applying an expense ratio, typically 25-50% depending on business type.
Bank statement programs vary widely across lenders. Some accept 12 months of statements while others require 24. Expense ratios differ by industry — a consultant might get 25% expenses while a contractor gets 50%.
Rates run 0.5-2% higher than conventional loans because this is non-QM financing. The tradeoff is qualification flexibility. Working with a broker who knows which lenders use favorable expense ratios for your industry matters.
Not all non-QM lenders serve California. The ones that do have different overlays for loan amounts, property types, and documentation standards.
Most West Hollywood borrowers I work with on bank statement loans have strong income but messy tax returns. They write off home offices, vehicles, meals, and travel. Their actual cash flow far exceeds what Schedule C shows.
The biggest mistake is not organizing statements before applying. Lenders need clear scans of every page for 12-24 months. Missing statements kill deals. I also see borrowers mix business and personal funds poorly, which creates documentation headaches.
If you have large irregular deposits — property sales, gifts, loans — flag them upfront. Underwriters will question anything that doesn't look like regular income. Clean, consistent deposit patterns get faster approvals.
Bank statement loans compete with 1099 loans and profit-loss statement programs. The right choice depends on your documentation. If you receive 1099s from multiple clients, a 1099 loan might work with less paperwork.
P&L loans require a CPA letter but can close faster with just 12 months of statements. Asset depletion loans ignore income entirely and qualify you based on liquid assets — better if you have significant savings but irregular deposits.
For investment properties, DSCR loans skip personal income verification completely. They qualify based on rental income alone. That works better than bank statements if you're buying a rental.
West Hollywood's housing stock includes condos, townhomes, and single-family homes across a tight geographic area. Bank statement loans work for all property types, but condos require additional HOA review that can add time to closing.
Property values here demand larger loan amounts than many California markets. Make sure your lender has high enough bank statement loan limits. Some cap at $1.5 million while others go to $3 million or higher.
California's property tax rate around 1% applies, but West Hollywood has unique costs including competitive bidding environments and strict rental ordinances if you plan to rent part of the property.
They average your monthly deposits over 12-24 months, then subtract an expense ratio of 25-50% based on your business type. The net amount becomes your qualifying income.
Yes, most lenders accept business accounts. Some require both personal and business if you own multiple entities or mix funds between accounts.
Typically no. Bank statement loans exist specifically to avoid tax return income verification. Some lenders ask for returns but don't use them for qualification.
Minimum scores start at 620, but most competitive rates require 680+. Higher scores offset the risk lenders take on non-traditional income documentation.
Plan for 10-20% down. Some programs go as low as 10% with strong credit and reserves, but 15-20% is more common for non-QM financing.
Yes. Rates run 0.5-2% higher than conventional loans because of added lender risk. The tradeoff is qualification flexibility for self-employed borrowers.