Bank Statement Loans in Hanford (Kings County): what to know
- We arrange bank statement loans for California homes nationwide, submit your scenario and we will confirm the licensed loan officer for your state.
- Property taxes in Hanford are assessed by Kings County, and lenders escrow them into the monthly payment, so the local tax bill directly affects your qualifying payment.
- California is a community-property state: on FHA and VA loans, a spouse’s debts can count even if the spouse is not on the loan.
- Self-employed borrowers in Hanford often have seasonal or variable income. Bank statement loans average 12 to 24 months of deposits, which smooths out the peaks and valleys better than a single year of tax returns.
- California is a community-property state with high conforming and high-balance limits in many counties. Rent-control rules in some cities can affect the rent figure a DSCR lender will use.
Local market snapshot: Hanford
| Median home value | $734,700California (statewide) · Source: U.S. Census Bureau |
|---|---|
| Median gross rent | $2,036/moCalifornia (statewide) · Source: U.S. Census Bureau |
| Effective property tax rate | 0.70% (approx.)California (statewide effective, approx.) · Source: National Mortgage Center |
Homeowners insurance: Wildfire is the dominant driver - many insurers have pulled back from high-risk zones, pushing homeowners toward the FAIR Plan; earthquake coverage is a separate policy.
Who it is for
- Business owners and self-employed borrowers with heavy write-offs
- Gig workers, contractors and realtors
- Buying a primary home, second home or investment property
Typical Bank Statement Loans requirements in Hanford, CA
| Statement period | 12 or 24 months, personal or business |
|---|---|
| Income calculation | Business: deposits × (1 − expense factor, often 50% or a CPA-set ratio). Personal: eligible deposits |
| Self-employment history | Typically 2 years |
| Minimum credit | Typically 620–660 |
| Max LTV | Up to about 85–90% with strong credit |
| Loan amounts | Up to about $3,000,000+ |
| Occupancy | Primary, second home and investment |
Figures are typical market ranges as of October 2026. Actual terms depend on the lender, your credit, the property and the program, and are confirmed on your Loan Estimate or term sheet.
How it works
- Pull 12 or 24 months of statements.
- Remove transfers and non-business deposits.
- Apply the expense factor (business accounts) to find qualifying income.
- Underwrite DTI, credit and reserves like any mortgage.
Try the Bank Statement Income Calculator
Pros and cons
Advantages
- No tax returns
- Counts real cash flow
- Works for primary homes
Trade-offs
- Rates above conventional
- Larger down payment than FHA/conventional
- Deposit analysis takes time
Documents you’ll need
- 12 or 24 months of bank statements
- Business license or CPA letter showing 2 years self-employed
- Optional CPA expense-ratio letter
- Asset statements for down payment and reserves
Bank Statement Loans FAQ
Can I get a Bank Statement Loan in Hanford?
Yes. We arrange bank statement loans for Hanford properties nationwide, submit your scenario and we will confirm the licensed loan officer for your state.
How is bank statement income calculated?
Lenders total eligible deposits, divide by the number of months, then apply an expense factor to business accounts (commonly 50%, lower with a CPA letter).
Personal or business statements?
Either. Personal statements usually count most deposits; business statements apply an expense factor.
Can I use a bank statement loan for a primary residence?
Yes. Unlike DSCR, bank statement loans work for primary homes, second homes and rentals.
How many months of statements do I need?
12 or 24 months, depending on the lender. 24 months usually gets better pricing because it shows more stable income.
What deposits do lenders exclude?
Transfers between your own accounts, large one-time deposits you cannot source, and anything that is not business revenue. Clean statements make underwriting much faster.
What is the expense factor on business statements?
Lenders multiply business deposits by 50% by default to account for expenses. A CPA letter stating your actual expense ratio can raise that, sometimes to 70 or 80%.
How long do I need to be self-employed?
Typically 2 years. Some lenders accept 1 year with strong reserves and a prior history in the same field.
What credit score do I need?
Usually 620 to 660 minimum, with the best rates at 700 and up. Higher down payments can offset a lower score.
Can I use bank statements for an investment property?
Yes. Bank statement loans work for primary homes, second homes and investment properties. For pure rentals, compare with DSCR, which skips income docs entirely.
Official sources
How Bank Statement Loans compare
| Bank Statement Loans | P&L-Only Loans | 1099 Loans | Asset Depletion Loans | |
|---|---|---|---|---|
| Best for | Business owners and self-employed borrowers with heavy write-offs | Business owners with a CPA-prepared P&L | Sales reps, realtors, nurses, drivers and other 1099 earners | Retirees |
| Down payment | , | , | , | , |
| Credit | Typically 620–660 | Typically 640–680 | Typically 620–660 | Typically 660–700 |
| Income docs | , | , | , | , |
Typical ranges, your Loan Estimate or term sheet confirms actual terms.
Coming soon: a 2-minute walkthrough from our loan team.
Related programs
P&L-Only Loans
A P&L-only loan qualifies a self-employed borrower using a 12- or 24-month profit and loss statement prepared or signed by a CPA, EA or licensed tax preparer, with no tax returns.
1099 Loans
A 1099 loan qualifies independent contractors using their 1099 forms (and sometimes a small expense factor) instead of full tax returns, so write-offs on Schedule C do not shrink your qualifying income..
Asset Depletion Loans
An asset depletion (asset utilization) loan converts your liquid assets into a monthly qualifying income, typically by dividing eligible assets by a set number of months, so retirees and investors with savings but little paycheck can qualify..
Non-QM Loans
A non-QM (non-qualified mortgage) loan is any mortgage that documents income or credit outside the standard Qualified Mortgage rules, using bank statements, a P&L, 1099s, assets or rent instead of W-2s and tax returns.