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in Fresno, CA
Fresno's self-employed borrowers—contractors, farm operators, salon owners—face a choice: prove income with bank statements or a CPA-prepared P&L. Both bypass tax returns, which often understate real earnings.
The right fit depends on how clean your business accounting is and whether you want a CPA involved. One path offers flexibility, the other offers credibility with underwriters.
Bank statement loans analyze 12 or 24 months of business or personal bank deposits to calculate income. Underwriters apply a percentage (typically 50-75%) to average monthly deposits as qualifying income.
This works for borrowers with consistent deposits but messy books. No CPA required. You need 10-20% down, 620+ credit, and clean bank records without unexplained large swings.
P&L loans use a CPA-prepared profit and loss statement covering 1-2 years. The CPA signs off that the numbers reflect your business performance, giving lenders confidence in the income claim.
You'll need 10-20% down and 620+ credit. This path suits borrowers with organized books and a relationship with a CPA who knows their business inside out.
Bank statements skip the CPA entirely—just upload PDFs from your bank. P&L loans need formal financials, which costs $500-2,000 in CPA fees but can justify higher income if your deposits look erratic.
Bank statement underwriting scrutinizes every deposit and withdrawal. One large unexplained deposit can trigger questions. P&L loans smooth those bumps—the CPA already validated the numbers.
Go bank statement if you have steady deposits, no CPA on retainer, and want to close fast. This works for contractors, real estate agents, and small operators with straightforward cash flow.
Choose P&L if your deposits swing wildly, you write off heavy expenses, or you already work with a CPA. The formal statement can unlock higher loan amounts when bank deposits alone don't tell the full story.
Yes, lenders accept personal statements if your business income flows through them. Expect closer scrutiny on what counts as income versus personal transfers.
No, the CPA-prepared P&L replaces tax returns. You'll provide the P&L and a CPA letter, not 1040s or 1120s.
Rates are similar—both are non-QM products priced on risk. Credit score and down payment matter more than which income method you choose.
Most lenders require 12 or 24 months. Longer history smooths seasonal swings, which helps Fresno ag-related borrowers with harvest cycles.
Yes, but it restarts underwriting and delays closing. Decide upfront which documentation path you can deliver cleanly.