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Bank Statement Loans in Burlingame
Burlingame's thriving business community includes many self-employed professionals who face challenges qualifying for traditional mortgages. Bank statement loans solve this problem by verifying income through 12 to 24 months of bank deposits rather than tax returns.
This Non-QM product serves entrepreneurs, independent contractors, and small business owners who write off significant expenses. The flexibility makes homeownership accessible in San Mateo County's competitive real estate market.
Self-employed borrowers often show lower taxable income than their actual cash flow. Bank statement loans recognize this reality by focusing on deposits rather than adjusted gross income on tax returns.
Borrowers need 12 to 24 months of consecutive bank statements showing consistent deposits. Lenders calculate income by averaging monthly deposits and applying expense ratios that typically range from 25% to 50% depending on business type.
Credit score requirements usually start at 620, though stronger scores above 680 unlock better terms. Down payments typically begin at 10% for primary residences, with 15% to 20% more common for investment properties.
The program works best for borrowers with two or more years of self-employment history. Business bank statements, personal statements, or a combination may qualify depending on business structure.
Not all lenders offer bank statement loans, making broker access essential for Burlingame buyers. Each lender uses different formulas to calculate qualifying income and applies varying expense ratios to deposits.
Some lenders accept 12-month programs while others require 24 months. The documentation requirements vary significantly, with certain lenders accepting electronically downloaded statements while others insist on official bank-issued copies.
Interest rates on bank statement loans run higher than conventional products due to the alternative documentation. Rates vary by borrower profile and market conditions, with factors including credit score, down payment, and loan amount affecting pricing.
Many self-employed Burlingame residents qualify for more house than they realize. The key lies in choosing between 12-month and 24-month programs based on deposit consistency and selecting lenders with favorable expense ratios for your business type.
Timing matters significantly. Borrowers should avoid making large non-business deposits or transfers during the statement period, as these complicate income calculations. Clean, consistent business deposits create the strongest file.
Working with a broker who understands multiple bank statement programs helps match borrowers to optimal lenders. Some lenders work better for certain professions or business structures, making program selection critical to approval success.
Bank statement loans compete with several alternatives for self-employed borrowers. 1099 Loans work for contractors receiving most income through 1099 forms, while Profit & Loss Statement Loans allow CPA-prepared financials to document income.
Asset Depletion Loans qualify borrowers based on liquid assets rather than income, serving those with substantial savings. DSCR Loans focus on investment property cash flow instead of borrower income, ideal for rental investors.
The right choice depends on your documentation strengths. Business owners with strong bank deposits but complex tax returns benefit most from bank statement programs compared to traditional income verification.
Burlingame's proximity to Silicon Valley and San Francisco creates a robust self-employment ecosystem. Tech consultants, startup founders, and professional service providers frequently need bank statement financing in San Mateo County.
Property values throughout Burlingame require substantial loan amounts, making income calculation methods especially important. The difference between 25% and 50% expense ratios can mean hundreds of thousands in buying power.
San Mateo County's competitive market rewards quick closings. Bank statement loans typically take 30 to 45 days to close when documentation is organized upfront, keeping Burlingame buyers competitive with conventional purchasers.
Yes, many lenders accept combinations of personal and business statements. The approach depends on your business structure and how you receive income. Sole proprietors often use personal statements while LLC owners might use business accounts.
Lenders average your monthly deposits over 12 or 24 months, then subtract an expense ratio typically ranging from 25% to 50%. The remaining amount becomes your qualifying income. Higher expense ratios reduce qualifying income.
Consistent deposits strengthen applications, but irregular income doesn't disqualify you. Lenders review the full pattern and may focus on average monthly amounts. Some fluctuation is expected for self-employed borrowers.
Yes, bank statement loans work for investment properties with higher down payments, typically 20% to 25%. DSCR Loans might offer better terms for rental properties since they focus on property cash flow rather than personal income.
Bank statement loans typically close in 30 to 45 days with organized documentation. The timeline matches conventional loans when statements are clean and complete. Preparation reduces delays significantly.
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.