To apply for a bank statement loan in California you'll provide 12–24 months of bank statements instead of tax returns; the lender averages your deposits to calculate income. Expect a 10–20% down payment, a credit score around 620–660+, and proof you've been self-employed about two years. No W-2s or tax returns required.
Step 1 — Confirm this is the right loan
Bank statement loans are for self-employed borrowers, business owners, and 1099 earners whose tax returns understate their real income because of write-offs. If that's you, this program often qualifies you for far more than a conventional loan would. See our bank statement loan program.
Step 2 — Gather your documents
- 12–24 months of bank statements (personal or business, depending on program).
- Proof of self-employment for ~2 years (business license, CPA letter, or similar).
- ID, and details on the property you're buying or refinancing.
No tax returns and no W-2s are required — that's the point of the program.
Step 3 — How the lender counts your income
The lender totals your deposits over the statement period and applies an expense factor (or uses your P&L) to estimate net income, then averages it monthly. Choosing the right statement period and account can materially change your qualifying income — this is where an experienced broker adds real dollars.
Step 4 — Credit, down payment, reserves
Plan on roughly 10–20% down, a credit score around 620–660+ (higher scores get better pricing), and some cash reserves. Exact requirements vary by lender, which is why we shop several.
Step 5 — Apply, underwrite, close
We submit your file, the lender orders an appraisal and reviews your statements, and on a clean file you close in about 3–5 weeks. Compare with conventional and P&L options first.
Frequently asked questions
What documents do I need for a bank statement loan?
Usually 12–24 months of personal or business bank statements, proof you've been self-employed about two years (license, CPA letter), and ID. No tax returns or W-2s.
How do lenders calculate income on a bank statement loan?
They total your deposits over the statement period and apply an expense factor (or use a profit-and-loss statement) to estimate net income, then average it into a monthly figure used to qualify you.
What credit score and down payment do I need?
Commonly a score around 620–660 or higher and 10–20% down, plus some reserves. Stronger credit and larger down payments get better rates.
How long does a bank statement loan take to close?
On a complete file, typically about 3–5 weeks — similar to a conventional loan once documentation is in.