Bank Statement Loans for Self Employed in California

California Self employed Statistics

California has an incredibly dynamic and diverse work force and is the world's fifth largest economy. Major industries include Hollywood's film industry, technology hubs of Silicon Valley and Irvine, healthcare, manufacturing, business services, and agriculture.

Being self-employed allows you to use your skills and determination to pursue your passions and earn money on your own terms. Whether it be in the film industry, technology, healthcare, or hospitality. According to the government statistics, California has 3.9 million small businesses [1].

The largest concentration of self-employed workers in California are in San Francisco, Los Angeles, Oxnard-Ventura, San Diego, and San Jose. They range from 12-15 percent of the workforce and are steadily growing even with the passage of AB5[2] to convert certain independent contractors to salaried employees. Many have claimed that their success and financial stability is attributed from their self-employment. In May 2017, 10.6 million people were employed as independent contractors, up from 10.3 million in February 2005 [3].

Global consulting firm McKinsey & Company found that there are roughly 68 million freelancers in the U.S. which greatly contrasts with the Bureau of Labor Statistics (BLS) count of only 16 million Americans being self-employed as of July 2019[4]

12 or 24 month loan program

Bank Statement Loan Options California

12 Month Bank Statement Overview

The 12-month program is the most popular and allows a self-employed borrower to use either personal or business bank statements to qualify.

  1. No Tax Returns - No Transcripts
  2. Must be self-employed for last 2 years
  3. Copy of business license, business filing with county or state, or tax preparer letter
  4. up to 60 LTV financing (40-percent down payment)
  5. credit scores as low as 680
  6. Primary residence, second home, or investment property
  7. Home, condo, townhome, or 2-4 units (No mobile or manufactured homes)
  8. loan amounts from $200,000 to $6 million
  9. One (1) 30-day late allowed on housing in last 12 months
  10. up to 55 LTV on cash-out refinance
  11. 100% of deposits allowed with personal accounts. Up to 90% allowed with business account
  12. Business bank statements may require an expense ratio letter or P&L(CPA or borrower prepared)
  13. Available on a 5/1, 7/1 ARM or 30-year fixed mortgage
  14. Interest only option up to 10 years
  15. Lowest interest rate when you have 760+ credit scores & 50 LTV

24 Month Bank Statement Program

This loan product was introduced to confirm your business income over a 24-month period.
Moreover, most bank statement lenders offer a better interest rate when you provide 24 months of statements.
Qualifying requirements for the 24-month bank statement loan are similar to the 12-month above.

1 Month Bank Statement Loan Highlights

  • Loan amounts from $300,000 up to $7.5 million
  • Purchase loans up to 65 LTV (35-percent down); 60 LTV for 1st time buyers
  • Refinance loans up to 65% (30-percent equity needed)
  • Minimum credit score of 680
  • Primary residences or Second home ONLY; No investment properties or units
  • Rural home with 10 acres acceptable
  • Need perfect credit & housing payment history for the last 3 years
  • Debt to income ratios (DTI) up to 50
  • Interest Only option of 5 or 10 years

Bank Statement Mortgage Lenders California

There are roughly 100 lenders who we work with. Approximately one-third of them offer this type of loan without tax returns. We know who the best bank statement lenders are that occasionally have monthy specials, lower interest rates than competitors, and easier approval conditions to get your loan closed hassle-free.

Tip: Please make sure that your California business can be found online at Your company should be active and valid for the underwriter to approve your self-employment. If you have an expired business name your loan request may not be approved. If you still have more questions check out our answers to FAQs about bank statement loans or simply click "apply" above and we'll contact you. Most California's sole proprietors have filed their fictitious business names at their local County Recorder's office.

We serve the following California areas:

Los Angeles County
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Agoura Hills • Alhambra • Baldwin Hills • Bel Air • Beverly Hills • Brentwood • Burbank • Calabasas • Culver City • Downtown L.A. • Echo Park • Encino • Gardena / Compton • Glendale • Granada Hills • Hancock Park • Hermosa Beach • Hollywood • Inglewood • La Canada - Flintridge • Los Feliz • Malibu • Manhattan Beach • Marina Del Rey • Northridge • Pacific Palisades • Pasadena • Redondo Beach • Santa Clarita • Santa Monica • Sherman Oaks • Silver Lake • Studio City • Tarzana • Torrance • Venice • View Park • Windsor Hills • West Hollywood • West L.A. • West Covina

Orange County
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Anaheim • Aliso Viejo • Brea • Buena Park • Costa Mesa • Coto De Caza • Cypress • Dana Point • Fountain Valley • Fullerton • Garden Grove • Huntington Beach • Irvine • Ladera Ranch • Lake Forest • Laguna Beach • Laguna Hills • Laguna Niguel • La Palma • Los Alamitos • Mission Viejo • Newport Beach • Orange • Placentia • Rancho Santa Margarita • Rossmoor • San Juan Capistrano • Santa Ana • Seal Beach • Tustin • Yorba Linda

Riverside County
Situated east of L.A. and Orange county, Riverside has some excellent attractions in Palm Springs, casinos & wine vineyards in Temecula & Murrieta plus highly-rated schools.
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Banning • Beaumont • Canyon Lake • Coachella • Corona • Desert Hot Springs • Hemet • Indian Wells • Lake Elsinore • La Quinta • Moreno Valley • Murrieta • Norco • Palm Desert • Palm Springs • Rancho Mirage • Riverside • San Jacinto • Temecula

Ventura County
  Located northwest of Los Angeles county and south of Santa Barbara county provides residents with peaceful living. The Ventura Pier and bike path are among the attractions.
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Camarillo • Fillmore • Ojai • Oxnard • Port Hueneme • San Buenaventura • Santa Paula • Simi Valley • Thousand Oaks • Ventura

San Diego, Santa Barbara, San Luis Obispo.

Northern California
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San Jose • San Francisco • Sacramento • Oakland • Berkeley • Stockton • Modesto • Hayward • Fremont • Santa Rosa • Sunnyvale • San Rafael • Redding • Salinas • Visalia • Chico • Eureka • Palo Alto • San Ramon • San Mateo • Mountain View • Santa Cruz • Redwood City • Pleasanton • El Dorado Hills • Fresno


  1. California Small Business Profiles
  2. Assembly Bill 5
  3. L.A. Times Independent Contractors, June 2018
  4. Pew Research Facts about American Workers 8/29/2019


William Cook, Mortgage Originator
William Cook, Mortgage and Finance Guru

William possesses an active license from the NMLS and California Dept. of Real Estate. William has extensive knowledge about various mortgage products, real estate investing and personal finance. He has been writing and blogging about real estate and related topics for more than 15 years. His work has been featured on various real estate sites and industry platforms. More about William