A bank statement loan is a non‑QM mortgage that allows borrowers—especially self‑employed Californians—to qualify using bank statements instead of tax returns.
This is ideal when tax write‑offs make taxable income look lower than actual cash flow. According to multiple California lenders, bank statement loans are designed for self‑employed borrowers, gig workers, contractors, and small business owners whose deposits better reflect their true income.
How It Works Instead of W‑2s or full tax returns, lenders review:
• 12–24 months of personal or business bank statements
• Average monthly deposits to calculate qualifying income
• Business expense factor (often 10–50% depending on industry) This approach is highlighted by California lenders as a flexible alternative to traditional mortgages.