Bank Statement Loans for Self-Employed Borrowers in California
Qualify using 12-24 months of bank statements instead of tax returns. Perfect for self-employed borrowers and business owners.
Overview
If you own a business, freelance or earn 1099 income, your tax returns probably show far less than you actually make. A bank statement loan solves that: the lender calculates your qualifying income from deposits into your personal or business accounts over 12 or 24 months. It is the most common path to a mortgage for self-employed buyers in San Ramon and the East Bay.
Designed for self-employed borrowers and business owners who write off expenses on their tax returns. Instead of traditional income verification, we use 12-24 months of personal or business bank statements to calculate qualifying income.
Program Features
- 12 or 24-month bank statement options
- Personal or business bank statements accepted
- No tax returns required
- Purchase and refinance eligible
- Up to $3M loan amounts
- Primary, second home, and investment properties
Ideal For
Self-employed borrowers, business owners, freelancers, gig economy workers, and entrepreneurs.
How income is calculated
You provide 12 or 24 consecutive months of statements. For personal accounts, deposits are totaled and averaged. For business accounts, the lender applies an expense factor (or uses a CPA letter) to estimate net income, then averages it. Large one-time transfers are excluded. The result is your monthly qualifying income, used in place of tax returns. No 1040s, no P&L in most cases, no employment verification beyond proof the business exists.
Program highlights
Purchase and refinance, including cash-out. Loan amounts up to $3M. Primary residences, second homes and investment properties. Both 12-month and 24-month options, with 24 months usually pricing better. Two years of self-employment history is typical, and some lenders accept one year with prior experience in the same field. Subject to credit approval; programs vary by lender.
Why the lender you pick matters
Expense factors, treatment of co-mingled accounts, minimum credit scores and maximum loan-to-value differ between lenders, and the difference can be the loan amount you qualify for. As a broker we compare bank statement programs across our panel and place the file where the income calculation works in your favor. A quick pre-review of your statements tells you where you stand before you apply.
Bank Statement Loan FAQs
Do I need tax returns for a bank statement loan?
No. That is the point of the program. Income is calculated from your bank deposits instead.
Can I use business bank statements?
Yes. Lenders apply an expense factor to business deposits, or use a CPA letter, to estimate net income. Personal statements are also accepted.
How long do I need to be self-employed?
Two years is standard. Some programs accept one year if you have prior experience in the same line of work.
What is the maximum loan amount?
Up to $3M through our bank statement programs, which covers most East Bay purchases.
Is the down payment larger than a conventional loan?
Usually somewhat larger, and it depends on credit score and loan amount. We will show you exactly what each lender requires for your scenario.
Can I do a cash-out refinance with bank statements?
Yes. Bank statement programs are available for purchase, rate-and-term and cash-out refinances.
Programs, terms and eligibility vary by lender and are subject to credit approval. This is not a commitment to lend. SiFi Lending is a mortgage broker (Simonich Financial, Inc., NMLS #2563307); we arrange loans, we do not make loans. Equal Housing Opportunity.