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Montague sits in rural Siskiyou County where many residents run small businesses, farms, or work as independent contractors. Traditional lenders reject these borrowers because tax returns don't show their real income.
Bank statement loans solve this by analyzing 12 or 24 months of deposits instead of W-2s. You qualify based on what actually flows through your accounts, not what you write off.
Bank Statement Loans in Montague
Most lenders want 620+ credit and 10-20% down depending on loan amount. They calculate income by averaging your monthly deposits, then apply a percentage based on business type.
Sole proprietors typically get 75% of deposits counted as income. LLCs and S-corps may see 50% counted since business expenses run higher. Cash flow matters more than what you reported to the IRS.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Montague.
Montague sits in rural Siskiyou County where many residents run small businesses, farms, or work as independent contractors. Traditional lenders reject these borrowers because tax returns don't show their real income.
Bank statement loans solve this by analyzing 12 or 24 months of deposits instead of W-2s. You qualify based on what actually flows through your accounts, not what you write off.
Most lenders want 620+ credit and 10-20% down depending on loan amount. They calculate income by averaging your monthly deposits, then apply a percentage based on business type.
Only non-QM lenders offer bank statement programs. Your local credit union won't touch these deals. Rates run 1-2% higher than conventional loans because underwriting takes more work.
Some lenders now accept crypto holdings as reserves or income alongside traditional bank statements. This matters in Northern California where tech workers mine or trade digital assets while running other businesses.
I see Montague borrowers get tripped up by inconsistent deposits. One $15K month and five $3K months won't average well. Lenders want steady cash flow, not lumpy income patterns.
Clean up your statements before applying. Large transfers between personal accounts look like manufactured income. Separate business and personal banking at least six months before you apply.
1099 loans work better if you get regular contractor payments from one or two sources. Profit and loss statements require a CPA letter that costs $500-800.
Bank statement programs give you the most flexibility. You don't need clean tax returns or formal P&Ls. Just accounts that show regular business activity for a year or more.
Montague's small-town economy runs on agriculture, tourism, and service businesses. Most properties here fall under conforming loan limits, but bank statement loans still apply.
Seasonal businesses face extra scrutiny. If you run a rafting company or farm operation, lenders average your full year of deposits. They won't penalize you for winter slowdowns if spring and summer compensate.
Most lenders require 12 months. Some will use 24 months if it shows stronger income trends. Personal and business accounts both count.
Provide all accounts where business income gets deposited. Lenders will combine them to calculate your total qualifying income.
Yes. Underwriters remove irregular deposits like insurance payouts or loan proceeds. They want recurring business revenue, not windfalls.
You need at least 12 months of statements showing business activity. New businesses without that history won't qualify yet.
Expect 1-2% above conventional rates. Lower credit scores or higher loan amounts push rates toward the upper end of that range.