Non-QM Loans :  1-858-997-9135
VA & Conv Loans :  1-855-537-6969
Non-QM Loans :  1-858-997-9135
VA & Conv Loans :  1-855-537-6969

Find Out if You Qualify


If you are a person who is currently self-employed, a gig worker, entrepreneur, realtor, consultant, or a freelancer and thinking of getting a home, then a bank statement loan is the best way to get one.

The best thing about these loans is that they have a good amount of flexibility which allows you to easily qualify for it. They can become a good way to qualify you based on cash flow for you which is used to buy your home. The eligibility requirements are very vast which makes it easy for the individual to get qualified, for example, a minimum credit score of 660, a 10% down payment, and 6 months cash reserves.

However, this is just one step of the whole process and I am sure you would never want a loan with a high interest rate. So, the next step for you would be to get a loan with a low interest rate. Let’s have a look at the factors that come into play when you have to apply for a bank statement mortgage.

bank  statement loan California
Bank State Loans Near California
Bank Statement Loans

Credit Score for Bank Statement Loan in California

Your interest rate depends on your credit score. This means the better your credit score, the lower your interest rate, however, if your credit score is not that good, it would be better for you to work on it before applying for the loan.  For your information, banks or mortgage lenders always pull scores about the individual from all three credit bureaus so that they can check the risk of lending money to that borrower.

Down Payment For Your Bank Statement Loan In California 

Your credit score also supports the down payment requirement. Let’s make it simpler for you. The higher the credit score you have, the lower the down payment you will have to pay which means ultimately lower interest rate.

For example, if you are having a credit score of 660, this means you have to pay the 10 percent as the down payment and if your credit score is higher than this then you get a better interest rate. For good measure, a large down payment is never a bad choice.

Factors that impact the rate of Bank Statement Loans

Apart from the above mention points which can affect the interest rate and your eligibility to get the loan, there are some factors also which can impact the rate of the loan.

Type of loan

Loans with a longer-term fixed rate usually come with a higher interest rate versus a shorter-term fixed loan like a 5/1 ARM that typically has a lower interest rate in the state of California.

Interest-only options

There are such loans that come with the idea that the person has to pay the interest rate for some time in the start instead of the loan and after some time, the person will start paying the principle of the loan. In this way, the person can purchase a higher-value home and have a reasonable payment.

Amount of Loan

The amount of loan also decides the value of the loan, the higher the amount of loan will be, the higher the interest rate will be. The reason the interest will be higher is because of the risk the mortgage lender will have to face in any case.

The Popularity of a Bank Statement Loan in California

Bank statement mortgages or loans are not like traditional loans, and they bring an easier method of purchasing a home. For example, it does not involve the methods of traditional methods, such as tax returns or employment verification. This makes it easier to get a loan from lenders.

These kinds of loans are mostly used by freelancers, businessmen, real estate investors, and contractors and provide a hassle-free way of purchasing a home. Moreover, in recent years, bank statement loans have exploded in popularity, especially for the self-employed. Let’s have a look at the different features which are making bank statement loans popular.

Reasons why the Bank Statement Loans are Popular in California

These loans have become a better option for people who are either doing their own business or working online and do not have some proof of their employment records which makes it easy for them to get these loans.

  • The explosion of freelancers and self-employment

According to the research done, there are around 16 million Americans who are self-employed and around 24 million Americans are thinking about self-employment. This rise of self-employed people and freelancers has enhanced the prospects of people moving towards bank statement loans as these people are looking to buy their homes.

  • The Rise of Real Estate Investment

Real estate investment has risen in the past decade and is not slowing down. People are working more and expansion into urban areas and buying investment properties have fueled the real estate boom. Therefore, investors need more lending options for money to buy properties without showing their tax returns or employment records. Bank statement loans are the best option in hand.

  • Mortgage rates are at their lowest

One of the reasons why people are getting mortgage loans is because interest rates are at all-time lows. This has caused a big shift in more people getting into real estate as property values continue to rise.

Buyers who do not have any traditional source of income are willing to go for bank statement loans as alternative documentation to get approved coupled with a good credit score near California.

  • Covid-19 and Employment

The pandemic has taken a toll on businesses and unemployment is on the rise as many were left without a job. In turn, this has pushed people into self-employment and the number is increasing day by day because it is providing them with the liberty to do their job the way they want to do.

As these loans do not require any employment verification proof, this means they can get the loan easily from the lenders or the bank through their bank statements. With this type of loan, anyone can feel comfortable knowing they can start their own business, make money, and get approved using bank statements loans.