Loading
in San Leandro, CA
Both loans skip tax returns entirely. They're built for self-employed borrowers whose write-offs make their taxable income look too low.
The difference is how you prove income. One uses your bank deposits. The other uses a CPA-signed P&L. That choice affects your rate and who approves you.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense ratio — usually 50% for sole proprietors — to arrive at qualifying income.
You don't need a CPA. You just need clean, consistent bank statements. Business and personal accounts both work, but lenders read them differently.
P&L loans rely on a profit and loss statement prepared by a licensed CPA. That one document stands in for tax returns and bank records.
Fewer lenders offer this option. Those that do often require a higher credit score and larger down payment. But if your cash flow is strong on paper, P&L loans can qualify you faster.
Bank statement loans are more widely available. More wholesale lenders offer them, which means more rate competition. P&L loans come from a smaller pool of lenders.
P&L loans carry more documentation risk. If a lender questions the CPA's methodology, your deal can stall. Bank statements are harder to dispute — the numbers are right there.
If you have 12 to 24 months of solid deposit history, start with bank statements. More lenders, more competition, better odds of a rate you can live with.
P&L loans make sense when your deposits are messy — lots of transfers, mixed personal and business use. A clean CPA statement can cut through the noise fast.
No. Bank statement loans only need your bank records. A CPA is not required unless you choose the P&L route.
Bank statement loans usually offer more lender competition. That often means better rates. Rates vary by borrower profile and market conditions.
Yes, for bank statement loans. Lenders apply different expense ratios to each. Business accounts typically get a higher expense deduction.
Most lenders want a P&L covering the last 12 months, signed and dated by a licensed CPA. Older statements usually won't qualify.
Yes. Both programs are available to San Leandro borrowers. Loan limits and terms depend on the lender and your borrower profile.
Most lenders want at least 620 to 660 for bank statement loans. P&L programs often require 680 or higher. Requirements vary by lender.