Bank statement loans in California are built for entrepreneurs, 1099 earners, realtors, freelancers, and small‑business owners whose tax returns don’t reflect true cash flow. Instead of W‑2s and full tax returns, lenders analyze 12–24 months of bank statements (business and/or personal) to document income—no tax returns required.
If you’re buying in Los Angeles, Orange County, San Diego, the Bay Area, Sacramento, or any high‑cost market, California jumbo bank statement loans and high‑balance bank statement mortgages can open doors that traditional underwriting sometimes can’t.
What is a California Bank Statement Loan?
A California bank statement mortgage (a Non‑QM loan) determines qualifying income from depositsshown on your bank statements—often applying a reasonable expense factor to business accounts (sometimes supported by a CPA letter).
- Properties: Primary residences, second homes, and investment properties (varies by lender).
- Common use cases: Purchase, rate/term refinance, and cash‑out refinance.
What Qualifies in California?
- Self‑employed / 1099: S‑Corp, LLC, sole proprietor, independent contractor.
- Income pattern fits deposits: Consistent business deposits for 12–24 months.
- Self‑employment history: Most programs expect ~2 years self‑employed (they still only require 12 months of statements for documentation).
- Case‑by‑case exceptions: Some lenders will consider ~1 year self‑employed if you have strong continuity—e.g., prior W‑2 in the same field for ~8 years.
Guidelines vary by lender. Your loan advisor will confirm eligibility.
12 Months vs. 24 Months of Statements—
Which Is Better?
12 MONTHS
Faster and lighter paperwork. Many lenders accept 12 months without any built‑in pricing penalty.
24 MONTHS
More data can unlock pricing benefits—some lenders offer a reduced rate when you provide 24 months; it can also help if income is seasonal or trending up.Jumbo & High Balance
Bank Statement Loans (California)
California home prices often exceed agency loan limits. That’s where high‑balance and jumbo bank statement mortgages shine.
- High‑balance bank statement loans (CA): For loan amounts above standard conforming limits(county‑specific).
- Jumbo bank statement loans (CA): For larger loan amounts well beyond agency caps—common in LA, Orange County, San Diego, San Jose, San Francisco, and coastal markets.
Exact loan limits and maximum LTVs vary by lender and county. Your broker will target lenders that are active (and competitive) at your price point.
What Drives Your Interest Rates?
Credit
Lenders usually price off your middle credit score (or highest middle among co‑borrowers).
Equity
For purchases, down payment % matters; for refinances, it’s loan‑to‑value (LTV).
Program Details
Occupancy (primary/second/investment), property type, and documentation path (12 vs. 24 months) can influence pricing.
Why Use a California Mortgage Broker for Bank Statement Loans?
Rates and guidelines vary widely across Non‑QM lenders.
A broker gives you the market, not just one bank’s view.
Best-fit pricing
We match your profile to lenders offering the sharpest bank statement rates for your scenario (12 vs. 24 months, expense factors, reserves).
Multiple lenders, one file
Side‑by‑side program options without repeating the process.
Real competition
If pricing shifts, we can re‑shop quickly to keep you aligned with market moves.California Self Employed: Who Benefits Most
Real estate agents & brokers
- Pattern: Commission spikes, seasonality around listing cycles.
- Prep: 12 or 24 months of personal statements with labeled commission deposits; quick letter explaining seasonality. Consider 24 months if volume fluctuates.
Small business owners, entrepreneurs, independent contractors, freelancers, and real estate investors
About the Author
Darrin J. Seppinni is President of HomeLife Mortgage and a published author with more than forty years in the mortgage industry. He specializes in non-traditional programs—including Bank Statement Loans, DSCR Loans, and No-Doc Loan solutions—that serve self-employed borrowers and real-estate investors.
Contact
Email: darrin@homelifemtg.com | Phone: 949-681-7280
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For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing. HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.
