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Encinitas attracts entrepreneurs, freelancers, and business owners. Traditional loans often reject these borrowers despite strong cash flow.
Bank statement loans solve that problem. Your deposits prove income — not a W-2 or tax return.
620+
Min Credit Score
12–24 Months
Bank Statements Needed
10–20%
Min Down Payment
2+ Years
Self-Employment Required
Non-QM
Loan Type
Bank Statement Loans in Encinitas
Most lenders want 12 to 24 months of bank statements. Business owners typically use 50% of deposits as qualifying income after an expense factor.
Credit score minimums usually start at 620. Down payments typically run 10% to 20% depending on the loan size and your profile.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Encinitas.
Encinitas attracts entrepreneurs, freelancers, and business owners. Traditional loans often reject these borrowers despite strong cash flow.
Bank statement loans solve that problem. Your deposits prove income — not a W-2 or tax return.
Most lenders want 12 to 24 months of bank statements. Business owners typically use 50% of deposits as qualifying income after an expense factor.
Retail banks rarely offer bank statement loans. This product lives almost entirely in the wholesale and non-QM lending space.
We work with 200+ wholesale lenders, many of whom specialize in non-QM products. Rate and program terms vary significantly between them.
The biggest mistake I see is borrowers mixing personal and business deposits. Keep accounts clean — commingled funds kill deals fast.
Run your numbers before applying. Some lenders use a 50% expense factor. Others accept a CPA letter to justify a lower one. That difference moves your qualifying income significantly.
If you get 1099s instead of W-2s, a 1099 loan may qualify you at a higher income than bank statements. Worth running both scenarios.
Strong assets with lower monthly income? Asset depletion loans calculate income differently and sometimes produce a better qualifying number.
Encinitas home prices demand serious buying power. Bank statement loans here often run in jumbo territory — above conventional loan limits.
The local economy runs heavy on small business owners, consultants, and creatives. This loan type fits that borrower profile well.
Yes. This loan is designed for self-employed borrowers. Lenders want at least 2 years of self-employment history.
Yes, some lenders allow personal statements. The expense factor applied to personal accounts is often lower.
They average your deposits over 12 or 24 months, then apply an expense factor — often 50%. A CPA letter can adjust that factor.
Yes, typically. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.
You can, but a DSCR loan may be a stronger fit for investment properties. We can compare both options for your situation.
Typically 21 to 30 days with complete documentation. Statement review adds time compared to a standard conventional loan.