I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
Los Angeles has one of the highest concentrations of self-employed residents in the country. Entertainment industry professionals, tech entrepreneurs, restaurateurs, real estate investors, healthcare practitioners, and freelancers of every kind make up a substantial share of LA’s workforce. For these borrowers, bank statement loans are often the only viable path to a mortgage that reflects their actual financial strength.
The Self-Employed Mortgage Problem in Los Angeles
California’s tax environment encourages aggressive deduction strategies for self-employed business owners. A business generating $400,000 in gross revenue may show $80,000 in taxable income after legitimate deductions — which would limit a conventional mortgage to a fraction of what the borrower can actually afford. A bank statement loan uses actual cash flow — deposits — rather than taxable income, producing a far more accurate picture of ability to pay.
How Bank Statement Loans Work
Lenders review 12 or 24 months of bank deposits and apply an expense ratio — typically 50% for business accounts — to arrive at qualifying income. A business depositing $25,000/month over 24 months would qualify with $12,500/month in income regardless of tax return figures. Personal bank statements can also be used at a higher percentage since personal accounts already reflect post-expense cash.
Los Angeles Loan Amounts
LA County’s 2026 conforming limit is $1,209,750. Bank statement loans are available both within and above this limit — many LA borrowers use bank statement programs for jumbo loans on properties in Beverly Hills, Santa Monica, Pacific Palisades, Silver Lake, Los Feliz, and other high-value neighborhoods.
Who Uses Bank Statement Loans in Los Angeles?
- Film and television professionals — actors, writers, directors, producers, crew members
- Real estate agents and investors with commission or rental income
- Restaurant and hospitality business owners
- Healthcare professionals operating private practices
- Tech founders and consultants
- Music industry professionals
Frequently Asked Questions
Do I need 2 years of self-employment to qualify?
Most lenders require 2 years. Some allow 12 months of self-employment for borrowers transitioning from W-2 employment in the same field. We can review your employment history to determine which lenders are the best fit.
What down payment is required for a bank statement loan in LA?
Most bank statement loan programs require 10–20% down depending on loan amount, credit score, and DSCR. Some lenders go as low as 10% down at 720+ credit for loan amounts up to $1M.
Can entertainment industry professionals use bank statement loans in Los Angeles?
Yes, and this is one of the most common use cases in LA. Actors, writers, directors, and crew members often have irregular, project-based income that doesn’t translate well to conventional underwriting. Bank statement loans evaluate actual deposit history, which typically gives a much clearer picture of a working entertainment professional’s financial strength.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
