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in Eureka, CA
Both loans solve the same problem: you're self-employed and tax returns don't show your real income. The difference is how you prove what you earn.
Eureka has a strong base of independent business owners — fishing, timber, trades, retail. These two non-QM programs were built for borrowers like that.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits, then apply an expense factor.
You don't need a CPA involved. Just clean bank statements showing consistent cash flow into your business or personal account.
P&L loans use a CPA-prepared profit and loss statement instead of bank statements. Your accountant documents your income directly.
This works well if your deposits are inconsistent but your actual profit is solid. The CPA's signature carries the weight.
Bank statement loans demand more paperwork — up to 24 months of records. P&L loans require less paper but more professional involvement from your accountant.
Rates vary by borrower profile and market conditions. P&L loans can carry slightly higher rates on some programs because income verification is less direct.
If your business runs heavy cash volume — think a fishing operation or contractor — bank statements often show stronger income. More deposits means more qualifying power.
If you run lean or your revenue is seasonal, a P&L can tell a cleaner story. Your CPA controls how income is presented. That matters in a market like Eureka where seasonal trades are common.
Yes — that's the point. Neither program uses tax returns. Your write-offs don't count against you.
No CPA required. You just provide 12 to 24 months of statements. The lender runs the income calculation.
Bank statement programs typically have more lender competition, which can mean better pricing. Rates vary by borrower profile and market conditions.
Most lenders want two years of self-employment history for both programs. Some allow 12 months with strong compensating factors.
Some lenders allow it as supporting documentation. Usually one method is primary. We'll identify which approach gets you the strongest approval.
Yes. Non-QM lenders lend in Humboldt County. Rural location may affect appraisal requirements but not program eligibility.