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in Antioch, CA
Self-employed borrowers in Antioch have two strong options for documenting income without traditional W-2s. Bank statement loans and profit & loss statement loans both serve business owners, but they verify income differently.
Your choice depends on how you manage your finances and what documentation you already maintain. Both are non-QM products designed specifically for entrepreneurs and independent contractors who don't fit conventional lending boxes.
Bank statement loans use 12 to 24 months of personal or business bank statements to calculate your income. Lenders analyze deposits to determine qualifying income, typically using 50-75% of average monthly deposits.
This option works well if you keep consistent cash flow through your accounts. No tax returns or P&L statements required. You simply provide bank statements showing regular business activity.
Many Antioch business owners prefer this route because they already have the statements on hand. The process is straightforward and doesn't require hiring a CPA to prepare additional documents.
Profit & loss statement loans rely on a CPA-prepared P&L to verify your business income. Your accountant creates a detailed statement showing revenue, expenses, and net profit over a 12 or 24 month period.
This approach works if you already maintain formal accounting records and work with a CPA. The P&L provides a clear picture of business profitability rather than just cash flow through accounts.
Antioch entrepreneurs with established accounting practices often find this method natural. If you already prepare P&Ls for business planning or tax purposes, you have the documentation ready.
The main split is documentation method: raw bank statements versus formal financial statements. Bank statement loans let lenders see actual cash movement. P&L loans show business performance through accounting principles.
Cost differs too. Bank statement loans require no additional professional fees beyond what you normally pay. P&L loans need a CPA to prepare the statement, adding several hundred dollars to your upfront costs.
Income calculation varies between the two. Bank statement loans typically use 50-75% of deposits as qualifying income. P&L loans use the net profit figure your CPA calculates, which accounts for legitimate business expenses.
Rates vary by borrower profile and market conditions. Both are non-QM products, so pricing depends on your overall credit picture, down payment, and how your income documentation looks to underwriters.
Choose bank statement loans if you want simplicity and already maintain good banking records. This works best when your deposits clearly reflect business income and you prefer avoiding extra professional fees.
Go with P&L loans if you work with a CPA regularly and maintain detailed accounting records. This option makes sense when your business has significant legitimate expenses that reduce bank deposits but shouldn't reduce qualifying income.
Consider your business structure too. Contractors and service providers with minimal overhead often prefer bank statement loans. Product-based businesses with inventory costs might benefit from P&L documentation that accounts for those expenses properly.
SRK Capital can review your specific situation and recommend the approach that maximizes your buying power in Antioch's market. We work with both documentation types regularly throughout Contra Costa County.
Generally, you choose one documentation method per loan application. However, some lenders may request supporting documents from either category to verify the income shown through your primary method.
No, both are non-QM products that look at the full borrower picture. While stronger credit helps, neither requires perfect scores. Your income documentation quality matters more than conventional lending.
Bank statement loans often process slightly faster since the documentation is simpler. P&L loans need CPA verification, which can add a few days. Both typically close within 30-45 days.
Rates vary by borrower profile and market conditions. Neither inherently offers better pricing. Your credit, down payment, and how cleanly your income documents determine your rate more than the documentation type.
Yes, if your bank statement application faces challenges, you can pivot to P&L documentation or vice versa. We help Antioch borrowers find the path that works best for their specific financial picture.