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Bank Statement Loans in Etna
Etna's economy runs on seasonal work, small business owners, and contractors who don't get W-2s. Traditional lenders reject most self-employed borrowers here because tax returns show deductions that hide real income.
Bank statement loans solve this by using 12-24 months of deposits to prove cash flow. You qualify based on what actually hits your account, not what you told the IRS after writing off your truck and equipment.
This matters in Siskiyou County where ranchers, construction contractors, and hospitality owners generate real income that doesn't show on line 31 of a tax return. Your CPA helped reduce taxable income — that same strategy kills conventional loan approval.
You need 12-24 months of business or personal bank statements showing consistent deposits. Most lenders calculate income using 50-75% of average monthly deposits, depending on profile.
Credit minimums start around 640, though some portfolio lenders go to 600 with larger down payments. Expect 15-20% down for purchases, 25% equity for cash-out refinances in rural markets like Etna.
Your bank statements can't show frequent NSFs, large unexplained deposits, or business-to-business transfers that look like circular payments. Lenders want clean deposit patterns that prove sustainable income.
Bank statement loans live in the non-QM space, which means you won't get them at Wells Fargo or your local credit union. These come from specialty lenders who underwrite to their own guidelines, not Fannie Mae rules.
SRK Capital works with 15-20 active bank statement lenders at any given time. Each has different appetites for property type, loan size, and borrower profile — which matters when you're financing rural Siskiyou County real estate.
Rates run 1.5-3 points higher than conventional loans. Current market puts you around 7.5-9.5% depending on credit, down payment, and property type. You're paying for flexibility that traditional underwriting won't provide.
Most self-employed Etna borrowers fail conventional loans because their CPA did their job too well. You wrote off mileage, equipment, home office, meals — all legitimate. But Fannie Mae sees taxable income of $40K when you actually deposited $110K.
Bank statement underwriting fixes this mismatch. We submit 24 months of statements, lender calculates average monthly deposits, applies a percentage (usually 50-75%), and that becomes your qualifying income. Your write-offs don't kill the deal.
The catch: you need clean statements. If you mix personal and business funds, show erratic deposits, or have regular overdrafts, underwriters get nervous. Three months before applying, clean up your banking patterns and stop depositing cash without documentation.
Bank statement loans compete with 1099 loans and P&L statement programs. The difference: bank statements show actual cash flow, while 1099s still rely on tax reporting and P&Ls require CPA preparation.
If you're a true contractor with minimal expenses, 1099 loans might price better. If you run a business with inventory or significant overhead, P&L statements could show higher qualifying income. Bank statements work best for borrowers with aggressive write-offs and straightforward deposit patterns.
For investment properties in Etna, DSCR loans ignore your personal income entirely — they qualify on rental cash flow. If the property rents for $2,400 and the payment is $1,800, you're approved regardless of what your tax return shows.
Etna's limited housing inventory makes property type important. Bank statement lenders vary widely on how they treat rural properties, manufactured homes, and larger acreage. Some cap at 5 acres, others go to 40 acres with land restrictions.
Siskiyou County appraisals can delay closings because comps are scarce and appraisers travel from Redding or Medford. Build extra time into your purchase contract — 45 days minimum, 60 is safer for complex properties.
If you're buying a working ranch or property with commercial use, expect more lender pushback. Many bank statement programs are designed for primary and second homes, not properties with income-producing barns, vacation rentals, or agricultural operations.
Yes, but mixed accounts complicate underwriting. Lenders prefer clean business statements showing only income deposits and business expenses. Personal accounts work if deposit patterns clearly show business revenue.
They average 12-24 months of deposits, then apply a percentage (usually 50-75%) to account for expenses. Higher percentages go to borrowers with lower stated expense ratios or W-2 supplement income.
Seasonal patterns are fine if you can show consistent annual income. Lenders average deposits over the full statement period, so summer spikes offset winter slowdowns in tourism or construction.
Yes, though DSCR loans often price better for pure rentals. Bank statement loans make sense when you want cash-out or the property doesn't generate enough rent to qualify via DSCR.
Expect rates 1.5-3 points higher, plus potential prepayment penalties. For borrowers who can't qualify conventionally, the premium is worth access to financing that matches their actual income reality.
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.