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Burlingame's median home prices make traditional income documentation a roadblock for many self-employed buyers. Bank statement loans solve this by analyzing deposits instead of tax returns.
Self-employed borrowers in San Mateo County often show lower taxable income than their actual cash flow. This loan type looks at what really comes in, not what you write off.
You need 12 to 24 months of personal or business bank statements showing consistent deposits. Lenders calculate income by averaging monthly deposits, often using 50-75% of gross deposits.
Credit scores typically start at 620, though most competitive rates need 680+. Down payments range from 10-20% depending on property type and credit profile.
Not every lender offers bank statement programs. We work with 200+ wholesale lenders, and only about 30 of them underwrite these loans competently.
Some lenders use 12 months of statements, others require 24. Some accept business-only statements, others want personal accounts. Shopping matters here more than conventional loans.
Most self-employed borrowers underestimate their qualifying income on bank statement loans. A tax return showing $80K might support $150K+ when we analyze deposits.
Clean bank statements matter. Large unexplained deposits, frequent NSFs, or inconsistent income patterns raise red flags. We tell clients to use one primary account for three months before applying.
1099 loans work for contractors with strong 1099 documentation. Profit & loss statement loans suit established businesses with CPA-prepared financials. Bank statement loans fit borrowers who take aggressive write-offs.
If you own rental properties, DSCR loans might beat bank statement programs. They ignore personal income entirely and qualify based on rental cash flow alone.
Burlingame properties often exceed conforming limits, pushing borrowers into jumbo territory. Some bank statement lenders cap at $1.5M, others go to $3M+. Loan size affects lender selection.
San Mateo County has high property taxes and HOA fees in many neighborhoods. Lenders include these in debt ratios, usually capping total DTI at 50% on bank statement loans.
Lenders average your monthly deposits over 12 or 24 months, then apply a percentage (typically 50-75%) to account for business expenses. Higher percentages require clean statements.
Some lenders accept business-only statements, others require personal accounts, and many want both. We match you with lenders who fit your documentation.
Yes. Rates run 0.5-2% higher depending on credit, down payment, and loan size. The trade-off is approval without tax returns.
Inconsistent income, frequent overdrafts, or too many unexplained large deposits create problems. Lenders want to see predictable cash flow patterns.
Expect 30-45 days. Underwriters manually review every statement, which takes longer than automated conventional underwriting.
Bank Statement Loans in Burlingame