Bank Statement Loans California

When applying for a Debt-Service Coverage Ratio (DSCR) or Non-QM (Qualified Mortgage) loan in California, you’ll need to provide a comprehensive set of documentation to demonstrate your financial situation and ability to repay the loan. These types of loans are often used by self-employed individuals or borrowers with non-traditional income sources. The specific documentation requirements may vary among lenders, but here is a general list of what you might need:

1. **Personal Identification:** Valid government-issued identification, such as a driver’s license or passport.

2. **Income Documentation:**
– For Self-Employed Borrowers:
– Profit and Loss Statements (P&L) for the last 12 to 24 months.
– Business bank statements for the same period to verify income deposits.
– Individual tax returns (personal and business) for the past two years.
– 1099 forms and other documents supporting any additional income sources.

– For W-2 or Salaried Borrowers:
– Pay stubs covering the most recent 30 days.
– W-2 forms for the past two years.
– Tax returns (personal and, if applicable, business) for the past two years.

3. **Employment Verification:** If you are employed, the lender may require verification of your employment and position.

4. **Bank Statements:** Recent personal and business bank statements for the last 3 to 12 months, depending on the lender’s requirements.

5. **Credit History:** Your credit report and credit score are essential. Ensure your credit report is accurate and address any discrepancies or issues.

6. **Debt Information:** Provide information about your existing debts, such as credit cards, student loans, auto loans, etc.

7. **Asset Documentation:** Information on your assets, such as savings, investments, and retirement accounts, may be required.

8. **Business Financials:** If you own a business, you might need additional documentation, such as balance sheets and cash flow statements.

9. **Proof of Rent/Mortgage Payments:** If you are currently renting or have an existing mortgage, be prepared to provide documentation of on-time payments.

10. **Business License (if applicable):** If you’re self-employed, you may need to show a valid business license.

11. **Residential History:** Provide information about your past residences for the last two years.

12. **Explanation Letter:** Prepare a letter explaining any gaps in employment, unusual deposits, or other relevant financial situations.

It’s important to note that each lender may have specific criteria and documentation requirements for DSCR or Non-QM loans, so be sure to check with the lender or mortgage broker you plan to work with to ensure you have all the necessary documentation. Having all the paperwork organized and readily available can streamline the application process and increase your chances of approval.