A bank statement loan lets self-employed and freelance Costa Mesa buyers qualify using 12–24 months of deposits instead of tax returns. Typical: 620–640+ credit, 10–20% down, income = averaged deposits × an expense factor (~50%). Rates run a bit above conventional. Full program details.
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How a bank statement loan works
Instead of tax returns, the lender reviews 12 to 24 months of your personal or business bank statements, averages the deposits, and applies an expense factor (often ~50%) to estimate qualifying income. No W-2s, no pay stubs, no tax returns — built for independent earners whose write-offs shrink their taxable income below what they actually make.
Who it fits in Costa Mesa
Costa Mesa's economy is full of the buyers this loan serves: restaurant and shop owners, designers, artists, contractors, agency owners, and gig professionals along 17th Street, in SoBeCa, and across the Eastside. If your accountant does a great job lowering your taxable income — and then a bank uses that low number to say no — a bank statement loan is the fix.
Typical terms (2026)
| Feature | Typical |
|---|---|
| Docs | 12–24 months bank statements — no tax returns |
| Credit score | ~620–640+ |
| Down payment | ~10–20% |
| Income calc | Avg deposits × expense factor (~50%) |
| Rate | ~0.75–2% over conventional |
| Property | Primary, second home, or investment |
Terms vary by lender, business type & profile; illustrative for 2026, not an offer.
Bank statement loan FAQs
What is it?
A non-QM loan qualifying on 12–24 months of deposits, not tax returns.
Who qualifies?
Self-employed/freelance ~2 yrs, 620–640+ credit, 10–20% down.
How's income figured?
Averaged deposits × ~50% expense factor (varies by business).
Higher rates?
Usually ~0.75–2% over conventional; many refinance later. Illustrative.
Why popular here?
Costa Mesa is full of creatives & owners whose returns understate income.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), serving Costa Mesa from its Newport Beach office. Nothing here is tax advice.