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San Juan Capistrano attracts business owners, real estate investors, and independent contractors drawn to the city's historic charm and coastal proximity. Traditional income documentation doesn't reflect what self-employed borrowers actually earn.
Bank statement loans use 12 or 24 months of deposits to calculate qualifying income. This works for borrowers who write off business expenses that reduce taxable income but still generate strong cash flow.
Bank Statement Loans in San Juan Capistrano
Most lenders require 12 to 24 months of business or personal bank statements showing consistent deposits. Credit scores typically start at 620, though rates improve significantly above 680.
Down payments range from 10% to 20% depending on credit profile and property type. Lenders calculate income by averaging deposits and applying a percentage based on whether you use business or personal accounts.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in San Juan Capistrano.
San Juan Capistrano attracts business owners, real estate investors, and independent contractors drawn to the city's historic charm and coastal proximity. Traditional income documentation doesn't reflect what self-employed borrowers actually earn.
Bank statement loans use 12 or 24 months of deposits to calculate qualifying income. This works for borrowers who write off business expenses that reduce taxable income but still generate strong cash flow.
Most lenders require 12 to 24 months of business or personal bank statements showing consistent deposits. Credit scores typically start at 620, though rates improve significantly above 680.
Access to 200+ wholesale lenders gives us multiple options for bank statement programs. Some calculate income at 100% of deposits on business accounts, others use 50% to account for expenses.
Underwriting varies widely between lenders. One might decline a contractor with seasonal income while another specializes in that exact scenario. Shopping your file across lenders finds the best structure.
I see two common mistakes with bank statement loans. First, borrowers think any deposits count as income—lenders exclude transfers between accounts and one-time windfalls. Second, mixing business and personal expenses in one account complicates underwriting.
The 12-month option works for borrowers with strong recent income but weak prior years. The 24-month average helps if you had one slow period but consistent performance overall. Choosing the right period changes your qualifying income significantly.
1099 loans work if you have stable contractor income from consistent clients. Profit and loss statements paired with CPAs help borrowers who track income formally but don't file tax returns showing full earnings.
Asset depletion loans ignore income entirely and qualify based on liquid assets. DSCR loans work for investment properties where rental income covers the mortgage. Bank statements fit borrowers with fluctuating business income and standard documentation gaps.
San Juan Capistrano's property types range from historic adobes near the Mission to newer developments in Rancho Mission Viejo and Forster Ranch. Older properties sometimes need larger down payments or face appraisal scrutiny with non-QM loans.
The city's business community includes hospitality operators, contractors serving coastal remodels, and professionals commuting to Irvine or San Diego. Bank statement loans accommodate income patterns retail banks won't approve.
Lenders count business revenue and regular client payments. They exclude transfers between your own accounts, loans, and one-time windfalls that don't represent ongoing income.
Yes, but lenders typically apply a lower percentage to personal account deposits to account for mixed personal and business expenses. Business accounts usually qualify more income.
Lenders average deposits across 12 or 24 months to smooth seasonal variation. Some specialize in construction, hospitality, and other industries with predictable cycles.
Yes, non-QM loans typically price 1-3% higher than agency loans. The rate compensates lenders for alternative documentation and reflects individual borrower risk.
Most programs start at 620, but you'll pay premium rates. Scores above 700 access better pricing and lower down payment requirements.
Yes, if your tax returns eventually show qualifying income or your business matures to where you can document income traditionally. Many borrowers use bank statement loans as a bridge.