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in San Joaquin, CA
Self-employed borrowers in San Joaquin face a choice: prove income with bank statements or a CPA-prepared P&L. Both are non-QM loans designed for business owners who can't show traditional W-2 income.
The right option depends on how you manage your books and what documentation you already have. One path is faster and simpler. The other can unlock higher loan amounts if your financials are clean.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders typically use 50-75% of average monthly deposits as qualifying income, depending on your business type.
You don't need a CPA or formal books. This makes bank statement loans the fastest option for contractors, commission earners, and cash-heavy businesses in San Joaquin.
P&L statement loans require a CPA-prepared profit and loss statement covering 12-24 months. Lenders use the net income from your P&L to qualify you, often resulting in higher purchasing power than bank statements.
You'll also need a year-to-date P&L and usually a business license. This option works best for established businesses with clean bookkeeping and a CPA relationship already in place.
Bank statement loans are faster and easier if you lack formal books. P&L loans take longer due to CPA requirements but typically qualify you for more money because they use full net income instead of a percentage of deposits.
Rates and down payments are similar across both programs. The real difference is documentation speed versus qualifying power. Bank statements get you to closing in 3-4 weeks. P&L loans can take 4-6 weeks but may increase your budget by 15-30%.
Choose bank statement loans if you don't have a CPA, run a cash business, or need to close fast. Choose P&L loans if you already prepare financials, want maximum purchasing power, and can wait an extra few weeks.
Most San Joaquin self-employed borrowers start with bank statements because it's simpler. We switch to P&L only when the numbers justify the extra hassle—usually when it unlocks an extra $50K+ in loan amount.
Yes, if you deposit business income into personal accounts. Most lenders accept personal or business bank statements as long as deposits show consistent income.
No, P&L loans skip tax returns entirely. Lenders only need the CPA-prepared profit and loss statement plus a year-to-date version.
Rates are nearly identical. Both are non-QM loans with similar pricing, typically 1-2% higher than conventional loans.
Usually 50-75% of average monthly deposits. The exact percentage depends on your business type and expense assumptions.
Yes, but it restarts underwriting. If your CPA can prepare a P&L quickly, switching makes sense when it increases your buying power significantly.