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in Corcoran, CA
Self-employed borrowers in Corcoran face a common problem: traditional lenders want W-2s you don't have. Both bank statement and P&L loans solve this, but they use different documentation to prove your income.
These aren't niche products anymore. We close both types regularly for contractors, farm operators, and small business owners across Kings County who can't qualify through conventional channels.
Bank statement loans use 12 to 24 months of business or personal bank statements to calculate your income. Lenders look at deposits, average them, and apply an expense factor based on your business type.
This works well if you have consistent deposits but heavy tax write-offs that tank your taxable income. We see this constantly with agricultural operations and construction businesses in Kings County.
P&L statement loans require a CPA-prepared profit and loss statement covering at least 12 months. Some lenders want a balance sheet too. Your accountant must be licensed and independent.
This route makes sense if your business shows strong profits on paper and you already work with a CPA. The income calculation is cleaner because it comes from a professional financial statement.
The biggest split is documentation speed versus income accuracy. Bank statements are raw data that lenders interpret. P&L statements are already organized by an accountant who knows what matters.
Rates tend to run similar on both products, but bank statement loans often get slightly higher pricing because lenders see more risk in unfiltered deposit data. Credit score and down payment matter more than which document you use.
Choose bank statements if you don't have a CPA relationship or your formal financials look weak due to aggressive write-offs. This is common in seasonal businesses like agriculture where cash flow tells a better story than year-end profits.
Go with P&L if you maintain clean books and your accountant already prepares monthly or quarterly statements. This typically gets cleaner underwriting and slightly better terms if your business shows consistent profitability.
Yes, most lenders accept personal statements if that's where business income flows. They'll apply a higher expense factor, usually 40-50%, to account for mixed personal spending.
Your CPA must hold an active state license and be independent from you. Family members who are CPAs typically don't qualify even if properly licensed.
Bank statements handle seasonality better because lenders see the actual deposit patterns. P&L statements can work but may require more explanation of off-season periods.
Some lenders allow this, but most require you to choose one income verification method. Providing both doesn't typically improve your rate or approval odds.
Standard requirement is 12 or 24 months depending on the lender. You can't skip months; they need consecutive statements ending within 60-90 days of application.