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Santa Rosa's self-employed population faces a common problem: strong income but tax returns that don't show it. Write-offs reduce taxable income while actual cash flow stays healthy.
Bank statement loans solve this by using 12 to 24 months of deposits to calculate qualifying income. We see contractors, consultants, and small business owners get approved at amounts their tax returns would never support.
Sonoma County's housing costs require real buying power. This program gives self-employed borrowers the leverage they need without waiting years to rebuild their tax return income.
Bank Statement Loans in Santa Rosa
You need 12 months in business minimum, though most lenders prefer 24. Credit scores start at 620, but 680+ gets better rates and more lender options.
Down payments run 10% to 20% depending on credit and property type. Investment properties require 20-25% down across the board.
Lenders calculate income by averaging your deposits and applying an expense ratio—usually 25% to 50% depending on your business type. A consultant gets 25% expenses while a contractor might see 50%.
Local decision guide
Use this guide to connect bank statement loans eligibility, lender expectations, and local market factors before comparing payment options in Santa Rosa.
Santa Rosa's self-employed population faces a common problem: strong income but tax returns that don't show it. Write-offs reduce taxable income while actual cash flow stays healthy.
Bank statement loans solve this by using 12 to 24 months of deposits to calculate qualifying income. We see contractors, consultants, and small business owners get approved at amounts their tax returns would never support.
Sonoma County's housing costs require real buying power. This program gives self-employed borrowers the leverage they need without waiting years to rebuild their tax return income.
Not every non-QM lender handles bank statement programs the same way. Some use 12-month lookbacks while others require 24. Some average all deposits, others separate business from personal transfers.
We work with lenders who understand Sonoma County business patterns. Seasonal income from wine industry contractors gets treated differently than steady consulting revenue.
Rates typically run 1% to 2% above conventional loans. The gap narrows with higher credit scores and larger down payments. Rates vary by borrower profile and market conditions.
Clean up your bank statements before applying. Large one-time deposits trigger questions. Consistent monthly patterns get approved faster than erratic cash flow.
Separate business and personal accounts if possible. Commingled funds work but require more documentation and explanations that slow approval.
Most Santa Rosa borrowers benefit from personal bank statements over business accounts. Personal statements typically show lower expense ratios, which means higher qualifying income.
1099 loans work better if you have consistent 1099 income and don't need the flexibility bank statements provide. Profit and loss statement loans require a CPA but can show higher income if your P&L is strong.
DSCR loans make sense for Santa Rosa investment properties where rental income covers the mortgage. Asset depletion works when you have substantial liquid assets but inconsistent income.
Bank statement loans hit the sweet spot for self-employed borrowers with steady deposits who maximize tax deductions. You prove income without restructuring your business or tax strategy.
Sonoma County's wine industry, construction sector, and professional services create a large self-employed population. Many show strong bank deposits but minimal tax return income due to equipment depreciation and business expenses.
Santa Rosa home prices require substantial qualifying income. Bank statement loans let you use actual cash flow instead of artificially low tax return figures.
We see strong demand in west Santa Rosa and Rincon Valley where self-employed buyers compete for limited inventory. Getting approved quickly matters in this market.
They average 12 or 24 months of deposits and subtract an expense ratio based on your industry. Typical ratios run 25% for service businesses to 50% for construction or retail.
Both work, but personal statements often qualify you for more. Business accounts typically get higher expense ratios applied, which reduces your qualifying income.
Minimum is 620, but 680+ gets significantly better rates and terms. Higher scores also allow lower down payments and more property type flexibility.
Clean files close in 21-30 days. Commingled accounts or irregular deposits add time for documentation and explanation letters.
No. Lenders exclude transfers between your own accounts, loan proceeds, and one-time deposits. Only recurring business income counts toward qualification.