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Bank Statement Loan Requirements in California

Bank statement loans replace tax returns with deposit history — so the requirements center on your statements, credit, and down payment, not your Schedule C. Here are the exact 2026 numbers: credit floors, down-payment tiers, the expense factor that turns deposits into income, reserves, and DTI.

620–640 credit floor10–20% down12/24 mo statementsNo tax returns
MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
The Requirements at a Glance

Credit: ~620–640 floor (700+ best). Down: 10–20% primary (up to 90% LTV well-qualified), 20–25% investment. Statements: 12 or 24 months, personal or business. Income: deposits ÷ months, minus an expense factor (~50%) on business accounts. Reserves: 3–6+ months. DTI: up to ~45–50%. Property: 1–4 unit residential. See Eligibility for who qualifies.

Credit & down payment tiers

Credit and down payment move together — a higher score lets you put less down and get a better rate. Illustrative 2026 tiers:

Credit scoreTypical min. down (primary)Pricing
720+10–15%Best rates
680–71915–20%Strong
660–67920–25%Moderate premium
620–65925%+Higher premium

Well-qualified borrowers can reach 90% LTV (10% down) on a primary residence. Investment properties typically require 20–25% down and a stronger credit profile. See Rates for how these tiers price.

Statements & how income is calculated

This is the heart of the program. Instead of tax returns, the lender uses your deposit history:

  1. Choose 12 or 24 months

    24-month programs often price better or allow higher LTV (longer consistency). 12-month suits a recent income increase or newer business. Statements must be consecutive, all pages, no gaps.

  2. Personal or business statements

    Personal works for sole proprietors running income through one account. Business shows higher volume but carries an expense factor.

  3. Deposits become income

    Eligible deposits are totaled and divided by the months. Transfers and non-income items are removed.

  4. The expense factor

    On business accounts, an expense factor (~50%) is applied. A CPA letter documenting lower actual expenses can raise qualifying income.

Worked example: $25,000/month in business deposits × a 50% expense factor = $12,500 qualifying monthly income — enough to support roughly a $500K–$600K loan at current rates, depending on your other debts. If your CPA can document that your real expenses are only 30%, your qualifying income rises accordingly. That single letter is often the highest-leverage document in the file.

Reserves, DTI & self-employment history

RequirementTypical 2026 standard
Reserves3–6 months of payments (6–12 for higher LTV / lower credit)
DTIUp to ~45%, some programs to ~50%
Self-employment historyUsually 2 years same field (some 12-month w/ strong factors)
Mortgage insuranceNone — no MI at any LTV

Retirement and investment accounts typically count toward reserves, and 12+ months of reserves can buy down your rate tier.

Property types & documents

Eligible property: residential 1–4 units — primary, second home, or investment. Commercial and 5+ unit multifamily need separate programs.

Documents you'll provide: 12–24 months of statements, a business license or proof of self-employment, sometimes articles of incorporation or a CPA letter, ID, and asset statements for down payment and reserves — but no tax returns for income. See the Process.

Not stated income. Bank statement loans are fully documented ability-to-repay loans — they just document income with deposits instead of returns. Anyone offering true "stated income, no proof" in 2026 isn't legitimate.

Bank statement requirement FAQs

What credit score do I need?

~620–640 floor; 700+ for best rates and higher LTV. Higher credit lowers your down-payment tier too.

How much down?

10–20% primary (up to 90% LTV well-qualified), 20–25% investment. Lower credit = more down.

How is income calculated?

Deposits ÷ months; business accounts get a ~50% expense factor (a CPA letter can improve it).

12 or 24 months?

Both common — 24-mo often prices better; 12-mo suits a recent increase or newer business.

Reserves?

3–6 months typical (6–12 for higher LTV/lower credit). Retirement/investment accounts usually count.

Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.

See exactly what your deposits qualify for.

Get pre-approved and we'll total your deposits, apply the right expense factor (and help you get a CPA letter if it raises your income), and match you to the credit and down-payment tier that prices best. Free, one credit pull, no obligation.