Find the Best California Bank Statement Loan Lender for Self-Employed Borrowers

Navigating mortgage options as a self-employed individual in California just got easier. Bypass the hurdles of traditional income verification with a lender who specializes in bank statement loans. This article introduces you to the concept of leveraging your bank deposits for loan approval and outlines how to work with a California bank statement loan lender to secure the home financing you need, even with your unique income structure.

Key Takeaways

  • Bank statement loans facilitate homeownership for self-employed individuals in California by utilizing bank statements as income proof instead of tax returns, with criteria often including only two years of self-employment, a minimum credit score of 620, and 12 to 24 months’ worth of bank statements.

  • NQM Funding’s Select Alt Doc program offers a flexible qualification framework for self-employed borrowers, accepting different forms of income verification documents like bank statements, 1099s, or profit and loss statements, which alleviates the reliance on tax returns.

  • Choosing NQM Funding for a bank statement loan provides benefits like specialized Non-QM loan products tailored for self-employed individuals, expert guidance, and a streamlined application process, enhancing the chances of securing a bank statement loan.

Unlocking Homeownership in California: The Bank Statement Loan Advantage

Bank statement loans, a type of non-QM loan, are a breath of fresh air for self-employed individuals and small business owners who often struggle with traditional loan options. Unlike conventional loans which rely on tax returns for income proof, bank statement loans utilize bank statements. This innovative approach not only simplifies the loan application process but also expands homeownership opportunities for the self-employed sector.

Bank statement loans have notably accessible eligibility criteria. Two years of self-employment, a minimum credit score of 620, and 12 or 24 months’ worth of bank statements for income verification are typically required. This less rigid qualification process potentially allows for lower down payments as low as 10%, making homeownership more attainable for a larger segment of self-employed individuals.

Moreover, bank statement loans cater to a diverse range of self-employed professionals such as gig workers, entrepreneurs, and freelancers. These loans accept personal bank statements, counting 100% of deposits, and business bank statements, counting 50% of deposits as income. This flexibility, along with the expertise of a bank statement loan lender like NQM Funding, makes the dream of homeownership a reality for self-employed borrowers, including the self employed borrower in California.

Navigating the Bank Statement Mortgage Landscape

Self-employed borrowers must comprehend the landscape of bank statement mortgages. For these loans, income is determined by:

  1. Summing all deposits over a given period.

  2. If using a business account, this sum is divided by two.

  3. Then, the sum is averaged over the number of months analyzed.

This method of income calculation offers a more accurate reflection of a self-employed borrower’s financial capability, making bank statement loans a more suitable option, especially when considering their debt service coverage ratio.

However, securing a bank statement loan does entail a meticulous underwriting process. Borrowers generally need to provide a profit and loss statement, and they may be subjected to additional scrutiny including examination of:

  • regular income deposits

  • large deposits

  • overdrafts

  • bounced checks

NQM Funding’s Select Alt Doc program can ease this process, offering various methods of income verification and providing more lenient requirements regarding credit events.

Identifying Your Ideal Bank Statement Loan Lender

Selecting an appropriate bank statement loan lender is a vital step towards homeownership. Mortgage lenders with experience in bank statement loans offer invaluable insight and guidance to self-employed borrowers seeking non-traditional lending solutions. They provide access to a wide range of mortgage products, including bank statement loans, potentially leading to better loan terms for borrowers.

Ensure that the mortgage brokers you compare are licensed in California and have the requisite experience to handle bank statement loans. NQM Funding, with its extensive knowledge and dedication to non-traditional lending solutions, exemplifies the ideal mortgage lender for securing a bank statement loan.

The Select Alt Doc Program by NQM Funding

NQM Funding’s Select Alt Doc program revolutionizes the non-traditional lending market. This program provides a flexible qualification framework for loan applicants, allowing self-employed individuals broader options when traditional documentation is inadequate. It’s a beacon of hope for those finding it challenging to secure a home loan due to inconsistent income.

One of the key highlights of the Select Alt Doc program is its accommodation of various documents for income verification. Borrowers can qualify with a range of documents including business or personal bank statements, 1099 forms, or profit and loss statements, omitting the need for tax returns. This flexibility significantly simplifies the loan application process for self-employed borrowers.

Furthermore, the Select Alt Doc program caters to a variety of borrower profiles that don’t align with traditional agency guidelines. This makes it a viable solution for self-employed professionals and real estate investors who often struggle with rigid traditional loan requirements.

Program Highlights That Set NQM Funding Apart

The Select Alt Doc program by NQM Funding stands out for its competitive features. It covers loan amounts ranging from $125,000 to over $3.5 million, catering to a wide variety of financing needs. Whether you’re an entrepreneur looking to finance your primary residence or a real estate investor seeking to diversify your portfolio, the Select Alt Doc program has you covered.

Additionally, the program provides high loan-to-value ratios of up to 90%, accommodating a broad spectrum of equity positions. It also offers competitive options such as purchase, rate/term, and cash-out refinancing, making it an attractive choice in the non-traditional lending market, especially when considering conventional loan limits.

Comparing Bank Statement Loans and Traditional Mortgages

While both bank statement loans and traditional mortgages serve the purpose of facilitating homeownership, they cater to different borrower profiles. Bank statement loans are designed for self-employed borrowers or those with inconsistent income, while traditional mortgages require consistent, verifiable income through W-2s and tax returns. This key difference in income verification sets the two apart, making bank statement loans a more viable option for self-employed borrowers.

Bank statement loans may come with higher interest rates and down payment requirements. This is due to the higher risk they pose to lenders. On the flip side, they also come with features like high loan-to-value ratios and a wide range of loan amounts, making them a flexible and accommodating solution for self-employed borrowers. To understand how bank statement loans work, you can refer to a bank statement loans faq.

Ultimately, the decision to opt for a bank statement loan or a traditional mortgage depends on the borrower’s individual circumstances, financial situation, and goals. For self-employed borrowers in California, NQM Funding offers bank statement loans, providing a viable solution for those who don’t qualify for traditional mortgages.

Step-by-Step Guide to Securing a Bank Statement Loan in California

here are several essential steps to obtaining a bank statement loan. The journey begins with:

  1. Initial consultation and eligibility assessment: This involves a discovery meeting to understand the borrower’s needs.

  2. Completing an application: Provide all necessary information and documentation.

  3. Finding the best rates: Consider the borrower’s credit score and financial situation.

The application process entails a manual underwriting process. This includes verifying deposited amounts through a Verification of Deposit (VOD) request and potentially contacting the bank. Despite the thorough process, the application for a bank statement loan can be completed within 30 days, provided all necessary documents are submitted in a timely manner.

It’s worth noting, however, that more complex situations could extend this period to 45-60 days. Therefore, having a detailed understanding of the process, and partnering with an experienced lender like NQM Funding, can significantly enhance the efficiency of securing a bank statement loan.

Preparing Your Financial Profile

You should carefully consider your financial profile when preparing to apply for a bank statement loan. For self-employed individuals and entrepreneurs, personal or business bank statements serve as proof of income. These documents offer a realistic representation of your income, giving lenders a comprehensive overview of your financial capabilities.

In addition to bank statements, it’s necessary to disclose detailed information about your business activities and expenses as part of the application process. This includes providing bank statements from both personal and business accounts covering a period of up to two years. Providing complete and accurate information is crucial for a successful application.

Partnering With NQM Funding for Expert Guidance

Partnering with NQM Funding for your bank statement loan offers numerous benefits, including:

  • Extensive support and education to partners, including training focused on Non-QM products and the latest industry trends

  • Enhanced capability to handle Non-QM loans effectively

  • Providing a seamless experience for borrowers

Moreover, mortgage professionals can benefit from a simplified bank statement loan application and approval process by collaborating with NQM Funding. By offering access to a variety of specialized Non-QM loan products and expert guidance, NQM Funding enables mortgage professionals to meet the diverse needs of their clients more effectively.

Why Choose NQM Funding for Your Bank Statement Loan

Opting for NQM Funding for a bank statement loan presents a host of benefits. NQM Funding specializes in wholesale Non-QM loan products, including Bank Statement Loan Programs, tailored to the requirements of self-employed individuals with unique income situations. Their commitment to understanding and meeting the needs of self-employed borrowers sets them apart in the market. Some of the benefits of choosing NQM Funding for a bank statement loan include:

  • Specialization in Non-QM loan products

  • Tailored programs for self-employed individuals

  • Understanding of unique income situations

  • Commitment to meeting borrower needs

Additionally, by collaborating with NQM Funding, mortgage professionals can:

  • Build a competitive edge in the market

  • Leverage their extensive knowledge and experience in the Non-QM sector

  • Access a unique blend of specialized loan products

  • Receive expert guidance that caters to a diverse range of borrower profiles

NQM Funding’s Bank Statement Loan Program enables self-employed individuals and entrepreneurs to utilize bank statements as a solid proof of income for loan qualification. This commitment to providing flexible and accommodating financial solutions makes NQM Funding a top choice for a bank statement loan.

The NQM Funding Edge: A Leader in Non-QM Loans

NQM Funding distinguishes itself as a leader in the financial marketplace with its diverse array of wholesale Non-QM loan products. Their goal to be the leading company for this product demonstrates their commitment to serving the unique needs of self-employed borrowers.

Through its strategic product offerings and deep-seated expertise in the Non-QM sector, NQM Funding has streamlined the application and approval processes. This enhances the efficiency and overall experience for clients, making NQM Funding an ideal partner for securing a bank statement loan.


In conclusion, bank statement loans offer a viable solution for self-employed borrowers seeking homeownership in California. By using bank statements as proof of income, these loans offer a flexible and accommodating option for those who may not qualify for traditional mortgages. NQM Funding, with its Select Alt Doc program and extensive expertise in non-QM loans, stands out as a leader in this field. Partnering with them not only simplifies the loan application process but also opens up a world of possibilities for achieving your homeownership dreams.

Frequently Asked Questions

What is a Select Alt Doc?

A Select Alt Doc allows self-employed borrowers to choose the documents that best reflect their financial situation.

What are the options for qualifying for a Select Alt Doc loan?

To qualify for a Select Alt Doc loan, you can use business bank statements, personal bank statements, 1099 forms, or profit and loss statements, with or without bank statements. These are the available options for qualifying.

What are the program highlights of a Select Alt Doc loan?

The program highlights of a Select Alt Doc loan include a high loan-to-value ratio, a minimum FICO score requirement, flexible loan amounts, and various refinancing options available. These features make it a versatile choice for borrowers looking for alternative documentation loan solutions.

What types of borrowers can qualify for a Select Alt Doc loan?

You can qualify for a Select Alt Doc loan if you are a U.S. citizen, permanent resident, non-permanent resident, or have an Individual Taxpayer Identification Number (ITIN).

Why should I choose NQM Funding for a bank statement loan?

You should choose NQM Funding for a bank statement loan because they offer wholesale Non-QM loan products with flexible qualifications and a variety of loan amounts to accommodate different income scenarios. This provides personalized options for your needs.

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