Non-QM · Bank Statement · DSCR Loans
Bank Statement Loans for Self-Employed Borrowers in California
Bank statement mortgage loans in California allow self-employed borrowers to qualify using 12–24 months of personal or business bank statements instead of tax returns. Options Home Loans offers programs starting at 620 credit score with up to 90% LTV. DSCR investor loans also available — no personal income required.
12–24 mo
Bank Statements
620
Min Credit Score
90%
Max LTV
Not Required
Tax Returns
What Is a Bank Statement Mortgage Loan?
A bank statement mortgage is a Non-QM (non-qualified mortgage) loan designed for self-employed borrowers, business owners, freelancers, and gig economy workers who cannot document income through traditional W-2s or tax returns. Instead of tax returns, the lender reviews 12–24 months of personal or business bank statements to calculate average monthly income. This approach captures actual cash flow rather than taxable income — a critical distinction for business owners who take advantage of legal deductions.
Who Should Consider a Bank Statement Loan?
Bank statement loans are ideal for self-employed borrowers whose tax returns show lower income due to business write-offs, depreciation, or other deductions. Common candidates include small business owners, independent contractors, real estate investors, consultants, freelancers, gig workers, and anyone who has been self-employed for at least 12–24 months. If your bank deposits are strong but your tax returns make it look like you earn very little, a bank statement loan may be the right solution.
How Income Is Calculated on a Bank Statement Loan
For personal bank statements, the lender averages your monthly deposits over 12–24 months. For business bank statements, an expense factor is applied — typically 50% for sole proprietors and 25–50% for corporations — to estimate net income. For example, if your business deposits average $20,000/month and a 50% expense factor applies, your qualifying income is $10,000/month. Options Home Loans works with multiple Non-QM lenders to find the most favorable income calculation for your specific situation.
DSCR Loans for California Real Estate Investors
DSCR (Debt Service Coverage Ratio) loans allow real estate investors to qualify based on the rental income of the investment property — not personal income. The DSCR is calculated by dividing the property's gross monthly rent by the total monthly mortgage payment (PITIA). A DSCR of 1.0 means rent exactly covers the payment; 1.25 means rent is 25% higher than the payment. Most programs require a minimum DSCR of 1.0–1.25. No personal income documentation, no employment verification, and no tax returns are required. This makes DSCR loans the fastest-growing product for California investors.
Bank Statement Loan Requirements in California
Typical requirements for a California bank statement loan include: 12–24 months of personal or business bank statements, minimum 620 credit score (some programs to 600), loan amounts from $150,000 to $3 million+, LTV up to 90% (10% down), primary residence, second home, or investment property, and 2+ years of self-employment history. Debt-to-income ratios are more flexible than conventional guidelines, typically up to 50–55%. Options Home Loans will review your full profile and match you with the best available program.
Non-QM Loan Programs Available in California
Beyond bank statement and DSCR loans, Options Home Loans offers a full suite of Non-QM products: asset depletion loans (qualify using liquid assets), 1099-only loans (for independent contractors), P&L statement loans (for business owners with a CPA-prepared profit and loss statement), foreign national loans (for non-US citizens purchasing California real estate), and interest-only loans for investors seeking maximum cash flow. Each program has different qualifying criteria — our team will identify the best fit for your scenario.
Rates and Terms for Non-QM Loans
Non-QM loans typically carry rates 0.5–1.5% higher than conventional loans due to the additional risk and documentation flexibility. However, for self-employed borrowers who cannot qualify conventionally, the rate premium is often worth the ability to purchase or refinance at all. Loan terms include 30-year fixed, 15-year fixed, 5/1 ARM, 7/1 ARM, and interest-only options. Options Home Loans shops your scenario across multiple Non-QM lenders to find the most competitive rate available.
You May Qualify If…
Bank Statement Loan FAQs
No Tax Returns Required
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