A bank statement loan lets self-employed Torrance 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%). A great fit for South Bay business owners. 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 business owners whose write-offs shrink their taxable income below what they actually make.
Who it fits in Torrance
Torrance has one of the South Bay's deepest small-business communities, full of the buyers this loan serves: medical, dental, and professional practices, retailers and restaurateurs, import-export and logistics firms, contractors, and independent consultants. 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 ~2 yrs, 620–640+ credit, 10–20% down.
How's income figured?
Averaged deposits × ~50% expense factor (varies by business).
Common for Torrance owners?
Yes — the South Bay has a deep small-business base.
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 Torrance from its Marina del Rey office. Nothing here is tax advice.