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. 

Bank statement loans are different from conventional loan options that require borrowers to provide proof of income based on tax returns and financial statements. However, with bank statement loans, borrowers can use information from their bank statements instead of tax information or other documents to show lenders they’re capable of paying back the loan. 

Business owners and self-employed workers seek bank statement loans because they allow these professionals to demonstrate their income more accurately while still claiming deductions for business expenses on their taxes. Generally, this can give them a better chance for a mortgage loan approval but everyone’s circumstances are unique.

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 bank statements. We count 100 percent of deposits as income.
  • Business Bank Statements: qualify on 12 or 24 months 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

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: AZ, CA, CO, CT, DE, FL, GA, HI, ID, IL, LA, ME, MD, MI, MT, NV, NM, NC, OH, OR, SC, TN, TX, VA, and WA. (Pending in NJ, OK, PA, UT, WI)

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.

How Much Do You Have to Put Down 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 five 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?

CA 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.