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Bank Statement Loans in Coronado
Coronado's real estate market attracts business owners and high-net-worth self-employed buyers who write off income aggressively. Traditional W-2 verification doesn't capture their actual earning power.
Bank statement loans solve this gap by analyzing cash flow from 12 or 24 months of deposits. Underwriters look at what actually moved through your accounts, not what you reported to the IRS.
You'll need 620+ credit and 10-20% down depending on loan amount. Lenders calculate income by averaging monthly deposits, then applying a 50% expense ratio to account for business costs.
Expect higher rates than conventional loans—typically 1.5 to 3 points above conforming rates. The premium reflects non-QM risk pricing and portfolio lending structures.
Most bank statement programs come from non-QM portfolio lenders, not Fannie or Freddie. Each lender sets their own overlays for reserves, debt ratios, and deposit consistency.
Some accept 12-month statements for stronger borrowers. Others require 24 months if credit is below 700 or you're buying in Coronado's upper price ranges. Mixing business and personal accounts creates underwriting complications.
I see Coronado buyers struggle when their bank statements show irregular deposits or large one-time transfers. Underwriters want consistent monthly flow, not sporadic windfalls that inflate averages.
Clean up your statements before applying. Move business expenses to a separate account three months ahead of time. Large unexplained deposits trigger documentation requests that delay closing.
1099 loans work if you have clean contractor income and can provide 1099 forms. Profit & Loss statements require a CPA letter and two years of P&Ls, adding cost and complexity.
DSCR loans bypass personal income entirely by qualifying on rental cash flow. Asset depletion divides liquid assets by 360 months to create qualifying income. Bank statements hit the sweet spot for most self-employed Coronado buyers.
Coronado's island location creates HOA-heavy condo inventory and high-value single-family homes. Non-QM lenders scrutinize condo warrantability and may cap loan amounts at $2-3 million depending on your deposit history.
Military buyers stationed at Naval Base Coronado usually don't need bank statement loans—VA financing offers better terms. This program targets business owners, consultants, and commission-based earners buying primary or second homes here.
They average total monthly deposits over 12 or 24 months, then multiply by 50% to account for business expenses. Consistent deposits produce higher qualifying income than sporadic large transfers.
Yes, but the condo project must meet lender warrantability standards. Some non-QM lenders have stricter condo requirements than conventional programs, especially for high-rise buildings.
Minimum 620, but you'll get better rates and terms above 700. Lower scores trigger larger down payment requirements and higher reserve mandates from portfolio lenders.
Typically 15-20% for most borrowers. Stronger credit and consistent deposits may qualify for 10% down programs with certain lenders, though rates increase at lower equity levels.
Yes, but mixing them complicates underwriting. Lenders prefer clean business accounts showing only income deposits, not personal transfers or one-time windfalls that inflate averages.
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.