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in Kerman, CA
Both options let self-employed borrowers in Kerman qualify without tax returns. The difference is how you prove income—either through deposits or CPA paperwork.
I see more bank statement deals close faster in Central Valley markets. P&L loans work when your business structure makes deposits messy to track.
Bank statement loans calculate income from 12 or 24 months of business or personal deposits. Lenders average your total deposits and apply an expense ratio—usually 25% to 50%.
This works best for contractors, consultants, and cash-heavy businesses common around Kerman's ag service economy. You skip the CPA requirement and just upload PDFs.
P&L statement loans require a CPA-prepared profit and loss report covering at least one year. Some lenders want two years if your income fluctuates significantly.
This fits borrowers with complex business structures—S-corps, partnerships, or multiple revenue streams. Kerman farmers and equipment dealers often use this when bank deposits don't tell the full story.
Bank statement loans use raw deposits. P&L loans use net profit after business expenses. That means the same business might show higher qualifying income one way or the other depending on deposit patterns.
Rates vary by borrower profile and market conditions, but bank statement loans typically price 0.25% to 0.50% better. The P&L route adds underwriting time because lenders verify CPA credentials and review the report line by line.
Choose bank statements if your deposits are clean and regular. Most Kerman self-employed borrowers close faster this way without paying a CPA.
Go with P&L if you run money through multiple accounts, take big deductions, or have a partner splitting deposits. It's also better when you already work with a CPA who knows your business.
Yes, most lenders let you combine accounts if deposits overlap. We pick the combination that shows your income best.
Some lenders accept one year if income is strong and consistent. Newer businesses under 12 months usually can't use P&L loans.
Depends on your expense ratio versus actual business costs. We run both calculations before you pay a CPA.
Yes, both typically need 640 minimum. Some portfolio lenders go to 600 with larger down payments.
You can, but it restarts underwriting and adds two weeks. Better to choose the right doc type upfront.