A bank statement loan lets self-employed Santa Monica buyers qualify using 12–24 months of deposits instead of tax returns — frequently at jumbo sizes here. Typical: 620–640+ credit, 10–20%+ down, income = averaged deposits × an expense factor (~50%). 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 high earners whose write-offs shrink their taxable income below what they actually make.
Who it fits in Santa Monica
Santa Monica is full of the buyers this loan serves: production company owners, directors and creatives, tech founders and consultants, agency principals, and independent professionals. Many earn well into jumbo-purchase territory but show complex or understated returns — the exact gap a bank statement loan closes.
Typical terms (2026)
| Feature | Typical |
|---|---|
| Docs | 12–24 months bank statements — no tax returns |
| Credit score | ~620–640+ (more for jumbo) |
| Down payment | ~10–20%+ (more on jumbo) |
| Income calc | Avg deposits × expense factor (~50%) |
| Loan size | Up to jumbo — common here |
| 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.
Jumbo bank statement?
Yes — common here; needs stronger credit, reserves & down payment.
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.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), serving Santa Monica from its Marina del Rey office. Nothing here is tax advice.