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in Sanger, CA
Self-employed borrowers in Sanger face a choice: prove income with bank statements or a CPA-prepared P&L. Both skip tax returns, but they work differently.
Bank statement loans pull deposits from 12-24 months of statements. P&L loans rely on a CPA's snapshot of your business finances.
Bank statement loans analyze 12 or 24 months of business or personal account deposits. Lenders calculate income by averaging those deposits, often applying a 50% expense factor.
You submit PDFs of statements, not tax returns. This works well for contractors, freelancers, and small business owners who write off most income.
Credit requirements typically start at 620. Down payments range from 10% to 20% depending on credit score and property type.
P&L statement loans require a CPA to prepare a detailed profit and loss report covering 12-24 months. The CPA must be licensed and independent.
This approach shows net business income after expenses. It appeals to borrowers who maintain clean books but take legitimate deductions that lower taxable income.
Credit scores usually need to hit 640 minimum. Down payments mirror bank statement programs at 10-20%.
Bank statements show raw cash flow. P&L statements show profitability after business expenses. If you run high deposits through accounts, bank statements might inflate qualifying income.
P&L loans cost extra upfront because you pay a CPA for preparation. Bank statement loans just need downloaded PDFs from your institution.
Rates vary by borrower profile and market conditions. Both products price similarly since they carry non-QM risk adjustments.
Choose bank statements if your accounts show consistent deposits and you lack a relationship with a CPA. This path is faster and cheaper to document.
Choose P&L if you maintain detailed books and already work with a CPA. Business owners with complex income streams often prefer this cleaner presentation.
Sanger's ag-related businesses and service contractors typically lean toward bank statements. Professional practices with formal accounting favor P&L documentation.
Yes, most lenders accept personal statements if business income deposits into those accounts. You'll need to show consistent income flow over 12-24 months.
No, the CPA just needs a valid license and independence from the borrower. Remote CPAs work fine as long as they prepare compliant statements.
Bank statements often show higher income because lenders use gross deposits minus a standard expense factor. P&L reflects actual net profit, which may be lower.
Bank statement loans close in 21-30 days typically. P&L loans take similar time once the CPA finishes documentation, which adds 1-2 weeks upfront.
Yes, if one approach doesn't yield enough qualifying income. We shop both options across 200+ lenders to find the best fit for your situation.