A bank statement loan lets self-employed Pasadena 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%). Written at conventional or jumbo size. 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 taxable income below what they actually make.
Who it fits in Pasadena
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%) |
| Loan size | Conventional or jumbo |
| Rate | ~0.75–2% over conventional |
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.
For a practice owner?
Yes — reads business/personal deposits; ideal for owned practices.
Conventional or jumbo?
Both — matched to your price point.
How's income figured?
Averaged deposits × ~50% expense factor (varies by business).
Higher rates?
Usually ~0.75–2% over conventional; many refinance later. Illustrative.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), serving Pasadena from its Marina del Rey office. Nothing here is tax advice.