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Novato's business owner community faces a common problem: strong cash flow that doesn't show up on tax returns. Bank statement loans solve this by using 12 to 24 months of deposits instead of W-2s or 1099s.
Self-employed borrowers in Marin County often write off legitimate expenses that reduce taxable income. This loan type lets lenders see your actual revenue before deductions hit.
Bank Statement Loans in Novato
Most lenders require 620 minimum credit, though some accept 580 with compensating factors. You'll need at least 12 months of consistent bank activity in business or personal accounts.
Down payment starts at 10% for primary residences, 15-20% for investment properties. Lenders calculate income by averaging monthly deposits, then applying a percentage based on your business type.
Expect rates 1-2% higher than conventional loans. This premium covers the added risk lenders take without traditional income documentation.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Novato.
Novato's business owner community faces a common problem: strong cash flow that doesn't show up on tax returns. Bank statement loans solve this by using 12 to 24 months of deposits instead of W-2s or 1099s.
Self-employed borrowers in Marin County often write off legitimate expenses that reduce taxable income. This loan type lets lenders see your actual revenue before deductions hit.
Most lenders require 620 minimum credit, though some accept 580 with compensating factors. You'll need at least 12 months of consistent bank activity in business or personal accounts.
Not all lenders price bank statement loans the same. Some count 100% of deposits as income, others use 50-75% depending on business expenses they assume you incur.
A few specialty lenders in our network accept single-account statements. Others require both business and personal accounts to cross-verify income consistency.
Turnaround varies wildly. Some lenders fund in 21 days, others take 45+ if they need extra underwriting reviews on complex deposit patterns.
Clean bank statements matter more than you think. Large one-time deposits trigger questions. Lenders want to see regular business revenue, not sporadic windfalls or transfers between accounts.
If you commingle personal and business funds, explain it upfront. Underwriters will flag every non-income deposit — loan proceeds, transfers, refunds. Documentation kills deals when borrowers don't prepare it early.
Timing matters. Start organizing statements 60 days before you want to lock a rate. Missing pages or accounts you forgot about will delay closing.
1099 loans work if you have clean tax returns showing strong income. Bank statement loans work when tax returns don't reflect what you actually earn.
Profit & loss loans require a CPA letter and reviewed financials. Bank statements skip that step but typically cost 0.25-0.5% more in rate.
DSCR loans ignore personal income entirely and qualify you on rental property cash flow. That's the move if you're buying an investment property in Novato with solid rent comps.
Novato sits in a county where many borrowers are consultants, creatives, or small business owners. Lenders familiar with Marin understand seasonal revenue fluctuations common in this market.
Properties in Novato often appraise well due to steady demand and limited inventory. Strong appraisals help offset the higher risk profile lenders assign to bank statement loans.
Marin County's higher property values mean many bank statement borrowers need jumbo loan amounts. Not every non-QM lender goes above conforming limits, so lender selection matters more here.
Yes, if they show consistent deposits covering your income needs. Some lenders prefer seeing personal accounts too for verification, but business-only works with the right lender.
Provide all accounts where business income deposits. Lenders will total the deposits across accounts to calculate your qualifying income.
No, but you'll need to document them. Lenders remove non-recurring deposits like loan proceeds or asset sales from income calculations.
Typically 50-100% depending on your business type. Service businesses often get 75-100%, while product-based businesses get 50-75% to account for costs.
Yes. Rate-and-term refinances work the same as purchases. Cash-out refinances require 15-20% equity and follow stricter debt-to-income limits.
Lenders average deposits over 12 or 24 months. Seasonal businesses should provide two years of statements to show the full revenue cycle.