A bank statement loan lets self-employed Newport Beach buyers qualify using 12–24 months of bank deposits instead of tax returns. Typical terms: 620–640+ credit, 10–20% down, income = averaged deposits × an expense factor (~50%). Rates run a bit above conventional. See the full program details.
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 around 50%) to estimate your qualifying income. No W-2s, no pay stubs, no tax returns. It's built for business owners whose write-offs shrink their taxable income far below what they actually bring in.
Who it fits in Newport Beach
Newport Beach is dense with exactly the buyers this loan serves: founders, consultants, physicians, attorneys, real estate professionals, restaurateurs, and other self-employed earners. If your accountant does a great job lowering your taxable income — and then a bank tells you that same low number disqualifies you — a bank statement loan is the answer.
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 ~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?
Newport Beach is full of business owners whose returns understate income.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), with a Newport Beach office at 4000 MacArthur Blvd, Suite 600. Nothing here is tax advice.