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Menlo Park's economy runs on equity comp, LLC distributions, and 1099 income. Traditional lenders want two years of tax returns that show predictable W-2 earnings. That doesn't match how tech founders, consultants, and venture-backed operators actually get paid.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders look at what hits your account, not what you reported to the IRS. This works when your tax returns show minimal income but your bank shows six figures in monthly deposits.
Bank Statement Loans in Menlo Park
Most lenders require 620+ credit and 10-20% down depending on loan size. You provide 12 or 24 months of business and personal bank statements. The underwriter calculates monthly income by averaging deposits and applying an expense ratio.
Expense ratios typically range from 25% to 50% depending on business type. If you show $20,000 in monthly deposits with a 40% expense ratio, the lender uses $12,000 as qualifying income. Higher down payments often unlock better expense ratios and lower rates.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Menlo Park.
Menlo Park's economy runs on equity comp, LLC distributions, and 1099 income. Traditional lenders want two years of tax returns that show predictable W-2 earnings. That doesn't match how tech founders, consultants, and venture-backed operators actually get paid.
Bank statement loans use 12 to 24 months of deposits to calculate income. Lenders look at what hits your account, not what you reported to the IRS. This works when your tax returns show minimal income but your bank shows six figures in monthly deposits.
Most lenders require 620+ credit and 10-20% down depending on loan size. You provide 12 or 24 months of business and personal bank statements. The underwriter calculates monthly income by averaging deposits and applying an expense ratio.
Not all bank statement programs treat deposits the same way. Some lenders average gross deposits. Others separate business transfers, one-time windfalls, and recurring income streams. A few now accept crypto exchange statements as income documentation.
We work with 200+ wholesale lenders and compare how each calculates income from your statements. One lender might disqualify Venmo transfers while another counts them. The right lender match can increase your qualifying income by 20-30%.
Most Menlo Park borrowers overpay because they go with the first lender who says yes. Bank statement loans carry higher rates than conventional loans, but rate spreads between lenders can exceed 1%. That's $500+ monthly on a $1.5M loan.
Clean up your statements before applying. Lenders flag irregular deposits, returned payments, and NSF fees. If you commingle personal and business funds, expect questions. Some borrowers open a dedicated account 12 months before applying to create cleaner documentation.
Bank statement loans work when 1099 loans and P&L loans don't. If you write off most income, 1099 loans still use tax returns. If your business is new, P&L loans require two years of operating history. Bank statements show income regardless of tax strategy.
DSCR loans ignore personal income entirely and qualify you based on rental property cash flow. Asset depletion loans use liquid assets instead of income. Each non-QM option solves a different documentation problem.
Menlo Park's median home values push many loans into jumbo territory. Bank statement jumbos require larger down payments and reserve requirements than conforming amounts. Expect 15-25% down and 6-12 months of reserves for properties over $1M.
Some lenders now accept verified cryptocurrency holdings as reserves or income documentation. If you hold significant crypto but limited cash, this expands your options. Rates vary by borrower profile and market conditions.
Most lenders want both business and personal statements to see the full income picture. Some accept business-only if you're incorporated and take a regular distribution.
You provide statements for all accounts where income deposits occur. Lenders consolidate them to calculate total qualifying income. More accounts means more documentation but doesn't hurt approval odds.
Underwriters flag unusual deposits and may exclude them from income calculations. Gift funds, tax refunds, and asset sales typically don't count as recurring income.
Expect 3-5 weeks from application to clear-to-close. The income calculation takes longer than conventional loans because underwriters manually review every deposit.
Yes. Rate-and-term refinances work the same as purchase loans. Cash-out refinances require more equity and reserves depending on loan amount.