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in Susanville, CA
Self-employed borrowers in Susanville face a choice between two income verification methods. Bank statement loans pull from your cash flow, while P&L loans lean on your CPA's books.
Both skip the W-2 requirement that blocks most self-employed buyers. The right option depends on how your business runs and what documentation you already maintain.
Bank statement loans verify income through 12 or 24 months of business or personal bank deposits. Lenders calculate your monthly income by averaging deposits and applying an expense ratio.
This works well for cash-heavy businesses or contractors who run significant expenses through their accounts. You skip the tax return problem where aggressive write-offs crush your qualifying income.
Most lenders require 620+ credit and 10-20% down for Susanville properties. Rates run higher than conventional loans but approval speed is faster since underwriters don't parse complex business structures.
P&L statement loans require a CPA-prepared profit and loss statement covering one or two years. Your accountant signs off on the numbers and lenders verify income from your bottom line.
This path suits established businesses with clean books and professional accounting. If you already pay a CPA to manage quarterly statements, the documentation is ready to go.
Credit and down payment requirements mirror bank statement loans. The difference shows up in underwriting time since lenders verify CPA credentials and may request supporting schedules.
Bank statement loans look at cash flow while P&L loans look at profit. A contractor running $80K through accounts monthly might qualify for more with bank statements even if their P&L shows lower profit after expenses.
Documentation burden differs sharply. Bank statements just require PDFs from your account while P&L loans need a licensed CPA to prepare and sign formal statements. If you don't already work with an accountant, bank statements save time and cost.
Rates vary by borrower profile and market conditions. Both programs typically price within 0.25% of each other. Approval speed favors bank statements since fewer documents need third-party verification.
Choose bank statements if you run a lot through your business account, take aggressive tax deductions, or don't have an established CPA. This works for contractors, consultants, and cash-based businesses in Susanville.
Go with P&L loans if you already maintain formal books with a CPA and your profit reflects actual qualifying income. Professional service businesses and established retail operations often fit here better.
Some borrowers qualify under both methods but show stronger income one way. We run the numbers both directions to find which path gets you the highest loan amount for Lassen County properties.
Yes, most lenders accept personal bank statements if your business income deposits there. They track deposits and apply expense ratios to calculate qualifying income.
Your CPA must hold an active license verifiable through state boards. Lenders check credentials directly and may request their professional liability insurance information.
Rates vary by borrower profile and market conditions, but both programs typically price within 0.25% of each other. Your credit score and down payment matter more than program choice.
Most lenders require 12 months minimum, though 24-month programs exist for borrowers with shorter credit history. Statements must be consecutive with no gaps.
Yes, but it restarts underwriting since documentation requirements differ completely. Better to choose the right path before submitting to avoid delays on Lassen County properties.