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 these professionals 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.

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?

We operate in:
  • Los Angeles
  • San Diego
  • Coronado
  • La Jolla
  • Del Mar
  • La Quinta
  • Palm Springs
  • San Jose
  • San Francisco
  • Fresno
  • Sacramento
  • Long Beach
  • Oakland
  • Bakersfield
  • Anaheim

Pros and Cons of Bank Statement Home Loans in California

Bank statement mortgage loans in California can help self-employed individuals achieve their dreams of homeownership. The pros of California bank statement loans include: 

  • No need for tax returns
  • Your income statements are based on regular monthly deposits rather than W-2s or pay stubs
  • Lenders can assess 12 or 24 months of bank statements
  • Down payments as low as 10%
  • Borrowers can explore cash-out refinance loans of up to 80% of their property’s value
  • Loans amounts up to $5 million
  • Choose between fixed-rate or adjustable-rate mortgages

While bank statement loans offer more flexibility for borrowers, they’re not the right option for everyone. Potential drawbacks include: 

  • Self-employed borrowers need to prove at least two years of self-employment
  • Some borrowers may face higher interest rates and down payment requirements compared to traditional loans
  • Bank statement loans lack the regulatory oversight of traditional mortgages, leading to varied eligibility criteria set by lenders


What Are the Requirements for a Bank Statement Loan in California?


In order to qualify for a bank statement loan 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, complete our online application to get the process started.

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. 

Who Should Consider a Bank Statement Home Loan in California?

California bank statement loans can be an excellent opportunity for many types of self-employed professionals and business owners across various industries. Gig economy workers, realtors, entrepreneurs, retirees, consultants, content creators, social media influencers, and other independent contractors often find flexibility in bank statement loans because they give them the opportunity to show the real income they make rather than the net income claimed on their tax returns, which doesn’t necessarily show the full picture of their finances. 

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.

How to Get a Bank Statement Loan in California

Our team at Griffin Funding can help guide any prospective borrowers, including business owners and self-employed individuals, through the process. Our lending process starts with an initial discovery meeting where we assess your eligibility with this bank statement loan calculator and help you complete your application. We’ll also find the best rates based on your credit score. 

Once you’ve locked in your rate, we’ll work on the underwriting process, while you focus on ensuring that all the appropriate inspections are completed. When your loan is ready for signing, we can finalize everything and release your funds so you can move forward with purchasing your home.

Often, we can complete this process within 30 days—however, that depends on ensuring we get everything we need from you in a quick turnaround time. 

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 loan in CA with Griffith Funding, please complete our application form or call us at (855) 698-1098 and our team of experts will be happy to assist you.

Frequently Asked Questions: Bank Statement Loans in California

Are bank statement mortgage loans still widely available? 

Bank statement mortgage loans in California are not universally available because not every lender offers them. The availability of these loans depends on the policies and offerings of individual lenders. Griffin Funding is an experienced bank statement loan lender in California that can help you navigate the application process. 

Is it hard to get a bank statement loan in California?

The ease of getting a loan depends on your unique financial situation. Lenders typically assess factors such as credit history, income, and debt-to-income ratio. If you have a strong financial profile and can provide sufficient documentation, the process should be relatively straightforward. 

Ultimately, getting a bank statement loan in California is no more difficult than getting any other type of loan. However, whether you qualify and if this type of loan is right for you will depend on your unique situation and overall goals. 

If you’re considering bank statement loans as your path to homeownership, contact Griffin Funding today. We’ll learn more about you and your goals to help you determine whether bank statement loans are the right option for you. 

How long does it take to get a bank statement loan?

Griffin Funding aims to complete the bank statement loan process within 30 days. However, the actual timeline may vary based on certain factors, such as the loan amount, the complexity of the loan, and the responsiveness of the borrower in providing the required documentation.