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in Bell, CA
Self-employed borrowers in Bell have two main paths to qualify without tax returns. Bank statement loans use deposits to calculate income. P&L loans rely on CPA-prepared financial statements.
Both are Non-QM products designed for business owners who write off most income. The right choice depends on how you run your books and what documentation you already have.
Bank statement loans analyze 12 to 24 months of personal or business bank deposits. Lenders calculate average monthly income from your statements. No tax returns or CPA involvement required.
This works well if you have consistent deposits and clean banking records. Most lenders apply a 1.25x to 1.5x expense factor to account for business costs. You need 10-20% down and credit scores typically above 600.
P&L statement loans require CPA-prepared profit and loss statements covering 12-24 months. Your accountant signs off on business income and expenses. Some lenders also want a balance sheet and business license.
This route makes sense if you already work with a CPA for your business. Income calculation is straightforward—net profit from your P&L becomes qualifying income. Credit and down payment requirements mirror bank statement loans at 10-20% down and 600+ scores.
The biggest split is documentation cost and simplicity. Bank statements are free—you already have them. P&L loans require paying a CPA to prepare statements, which can run $500-$2,000 depending on complexity.
Income calculation differs too. Bank statement lenders look at gross deposits minus an expense factor. P&L loans use actual reported net profit. If your deposits look volatile but your P&L shows steady profit, the P&L route often yields higher qualifying income.
Choose bank statement loans if you don't use a CPA or want to close faster. The documentation is immediate and straightforward. This works for contractors, gig workers, and small business owners without formal accounting.
Go with P&L loans if you already maintain CPA-prepared books and your net profit tells a clearer income story. This matters in Bell where property values span a wide range—maximizing qualifying income can mean the difference between affording the home you want or settling.
No—lenders require one documentation type per loan. Pick the method that shows your income most favorably.
Rates are similar for both programs. Your credit score and down payment affect pricing more than documentation type.
Either works for bank statement loans. Business accounts often show clearer income for sole proprietors and contractors.
Bank statement loans typically close 2-3 weeks faster. P&L loans add time for CPA preparation and lender review of financials.
Yes, but it restarts underwriting. Choose your documentation path before submitting to avoid delays on Bell properties with tight closing timelines.