Bank Statement Loans in California

California has one of the top economies in the world, making it attractive for entrepreneurs and startups, but traditional lending options make it difficult for them to qualify. This can limit home buying opportunities for business owners and those who are self-employed.

According to the U.S. Census Bureau, California had approximately 3,502,950 nonemployer establishments in 2022, which serve as a proxy for self-employed individuals. The BLS reported that California’s total employment in November 2024 was approximately 16,032,440. The data suggests that as high as 21.85% of California’s workforce is self-employed.

With a bank statement loan, borrowers can make their dreams a reality. Bank statement loans in California are flexible and designed with self-employed individuals and business owners in mind. Learn more about this loan option to see if it’s the right fit for you.

What Is a Bank Statement Loan?

Bank statement loans are non-QM loans and are often the most convenient option for business owners and self-employed professionals in California, as well as many other states across the U.S.

Known as a self-employed mortgage, bank statement loans are different from conventional loan options that require borrowers to provide proof of income based on tax returns and financial statements. As a type of no-income verification mortgage, bank statement loans allow borrowers to use their bank statements instead of pay stubs, W-2s, and tax information to show lenders they’re capable of paying back the loan.

Business owners and self-employed workers seek out low or no doc loans in California like bank statement loans because they allow them to provide proof of income while still claiming deductions for business expenses on their taxes. By providing lenders with a more accurate picture of their income, borrowers can typically qualify for higher loan amounts and more beneficial terms.

If you think a bank statement loan might be right for you, speak to one of our loan specialists today to learn more.

Who Are Bank Statement Loans for?

California bank statement loans are ideal for self-employed professionals and business owners across various industries, including gig economy workers, realtors, entrepreneurs, retirees, consultants, content creators, social media influencers, and independent contractors. These loans offer flexibility by allowing borrowers to showcase their actual income through bank statements rather than relying on tax returns, which may not reflect their full financial picture.

For individuals who find that a bank statement home loan might not be the right option for them, our team can also help them find more suitable loan options:

• Asset-based loans: Asset-based loans allow borrowers to leverage the value of their assets to secure a loan instead of traditional qualification requirements.
• DSCR loans: DSCR loans are based on a property’s cash flow and are approved based on the debt service coverage ratio. Griffin Funding allows for DSCRs as low as .75.
• VA loans: Our team specializes in VA loans, which are mortgages for veterans and active-duty service members. These loans are backed by the federal government and are meant to make finding a home loan easier for veterans.
• FHA loans: These loans offer more flexible qualification requirements and lower down payment options (as little as 3.5% down). While they still require income verification, FHA loans often have more forgiving credit requirements.
• Home Equity loans: These loans allow you to tap the equity in your home without having to refinance your first mortgage. Home equity loans also allow you to use your bank statement deposits as proof of income.

Types of CA Bank Statement Loans

We currently offer two overarching loan options for self-employed borrowers.

• Personal Bank Statements: Qualify on 12 or 24 months’ worth of bank statements. We count 100 percent of deposits as income.
• Business Bank Statements: Qualify on 12 or 24 months’ worth of bank statements. We count 50 percent of the deposits as income.

Where Are Bank Statement Loans Available in CA?

This is not an exclusive list. Our team strives to serve borrowers across the state. We’re also proud to offer loans for borrowers in the following states:

In order to qualify for a bank statement loan in California our team will need to verify information about you including:

• Whether you’ve been self-employed for at least two years
• Can provide 10% of a down payment or more (10% down with a 660 credit score or higher)
• Have a credit score of at least 620
• Are able to prove that you’re a business owner

To be eligible for a bank statement loan in California, you generally need to fall into one of the following categories:

• Self-employed
• Business owner
• Retiree / Investor

If you think you may qualify for a bank statement mortgage loan in California based on this criteria, get in touch to take the first step towards getting a mortgage..

Not sure if a bank statement home loan in California is right for you? Download the Griffin Gold app to compare your mortgage loan options and assess your unique financial needs.

What Is the Minimum Down Payment for a Bank Statement Loan in California?

The down payment amount required for California bank statement loans usually depends on a borrower’s credit or bank statements and the nature of the regular deposits detailed for those accounts. Another major factor that plays into how large your down payment will be is the cost of the home you’re looking to purchase. With housing prices generally being higher in the state of California, you are likely going to need a larger down payment.

For traditional California home loans, lenders generally require a minimum down payment of anywhere from 5% to 20% and a credit score of more than 700. However,Griffin Funding offers bank statement loans to borrowers in CA who have a 620 credit score or higher. With a 660 credit score or higher, we accept down payments as low as 10%.

Note that the down payment you need to make will depend on your circumstances and what information you’re able to provide for our consideration.

How to Get a Bank Statement Loan in California

Interested in applying for a bank statement mortgage loan in California? At Griffin Funding, we offer streamlined approval processes for all of the self-employed mortgages we offer in California. Below are the basic steps you’ll take to secure a bank statement loan:

1. Initial Discovery Meeting: Start by connecting with Griffin Funding. During this meeting, our team will assess your eligibility using a bank statement loan calculator and guide you through completing your application.
2. Lock in Your Rate: Based on your credit score, we’ll help you secure the best available rate for your loan.
3. Underwriting Process: Once your rate is locked, we’ll handle the underwriting process. During this time, ensure all necessary inspections are completed on your end.
4. Finalize and Sign: When your loan is ready, we’ll schedule a signing to finalize the process.
5. Receive Your Funds: After signing, your funds will be released, allowing you to move forward with purchasing your home.

This process can often be completed in as little as 30 days, provided all required documents are submitted promptly.

Find Out If You Qualify for a Bank Statement Mortgage in California

Griffin Funding is a direct lender as well as a broker. Unlike most banks that only offer a few products, we partner with over 40 different banks, lenders, private equity funds, and investors nationwide and offer a large range of products. We have the experience and flexibility to find the unique loan that fits your unique situation, all while providing five-star, white-glove customer service that makes the process as pleasant as possible.

To apply for a bank statement home loan in California with Griffin Funding, please get started online or call us at (855) 576-1043 and our team of experts will be happy to assist you.