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Bank Statement Loans in Fairfield
Fairfield has a solid base of self-employed business owners who can't verify income the traditional way. Bank statement loans let you use 12 to 24 months of deposits instead of tax returns.
This matters in Solano County where small business owners, contractors, and gig workers often write off most of their taxable income. Your actual cash flow becomes the qualification metric.
You need 12 or 24 months of business or personal bank statements showing consistent deposits. Lenders calculate your monthly income based on total deposits minus standard business expense deductions.
Expect minimum credit scores around 620 to 660 depending on the lender. Down payment requirements typically start at 10% for primary residences and 15-20% for investment properties.
Bank statement loans sit in the non-QM space, which means fewer lenders offer them compared to conventional programs. We work with about 30 wholesale lenders who underwrite these deals.
Rates vary by borrower profile and market conditions. Pricing runs 1-2% higher than conventional loans because lenders view alternative documentation as higher risk.
The biggest mistake self-employed borrowers make is not organizing their statements before applying. Lenders want clean PDFs directly from the bank, not screenshots or printed copies.
Most underwriters average your deposits and apply a 25-50% expense ratio depending on your industry. Contractors get hit with higher expense ratios than consultants because lenders assume more business costs.
If you file 1099s and can show that income, 1099 loans might price better than bank statements. Same goes for P&L statement loans if you have a CPA who can verify your financials.
DSCR loans work better for investment properties in Fairfield where the rental income covers the mortgage. Asset depletion makes sense if you have substantial liquid assets but irregular income.
Fairfield's proximity to Travis Air Force Base creates opportunities for self-employed contractors serving the military community. Those businesses often show strong bank deposits but minimal taxable income.
The city sits between Sacramento and the Bay Area, attracting commuters who run consulting or tech businesses from home. Bank statement loans work well for these borrowers who optimize their tax write-offs.
Most lenders accept either business or personal statements. Some allow you to combine both if deposits flow between accounts.
Underwriters average your deposits over the statement period. Seasonal businesses can still qualify if the overall average supports the loan amount.
Lenders exclude obvious non-income deposits like transfers or loan proceeds. Consistent operating deposits matter more than occasional spikes.
Expect 3-4 weeks from application to closing. The underwriter manually reviews every statement, which takes longer than automated income verification.
Yes. Bank statement programs work for both purchases and refinances, including cash-out refinances up to certain LTV limits.
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.