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in Beverly Hills, CA
Beverly Hills entrepreneurs don't fit W-2 income boxes. You run production companies, real estate portfolios, medical practices, and consulting firms that show profit differently than paychecks.
Both bank statement and P&L loans skip tax returns. The difference comes down to how you prove income and which documentation your business already produces.
Bank statement loans analyze 12 to 24 months of business or personal account deposits. Lenders calculate income from consistent deposits, excluding transfers and non-income items.
You don't need CPA involvement. Most borrowers use this route when their business runs lean on paper but shows strong cash flow through accounts.
Lenders typically qualify you on 50% of deposits for personal accounts or 75% for business accounts. Some programs go higher depending on expense ratios.
P&L statement loans require a CPA-prepared profit and loss statement covering 12 to 24 months. Your accountant signs off on business income and expenses.
This path works for borrowers whose businesses already produce formal financials. Law firms, medical practices, and established companies often have these ready.
Lenders use the bottom line profit number to qualify you. Some programs average two years, others use the most recent 12 months.
Bank statement loans cost less upfront since you skip CPA fees. P&L loans often qualify you higher if your profit margins are strong and documented.
Rate differences are minimal between the two. Both sit in the non-QM space with similar pricing. The real split happens at documentation cost and income calculation method.
Bank statements show gross deposits before write-offs. P&L statements reflect net profit after business expenses. Choose based on which number is stronger for your situation.
Use bank statement loans when deposits consistently hit your accounts but tax returns show minimal income. This fits contractors, cash-heavy businesses, and borrowers who maximize deductions.
Choose P&L loans when you already produce quarterly financials and net profit is solid. CPAs can structure the statement to highlight qualifying income clearly.
Beverly Hills loan amounts often exceed conforming limits. Run both calculations with your broker before ordering CPA work. Sometimes deposits qualify you higher, sometimes documented profit does.
Most lenders require one method or the other, not both. Choose the documentation path that shows your income strongest before you apply.
Both work. Business accounts typically qualify on 75% of deposits while personal accounts use 50% since they mix business and personal funds.
Most lenders want it prepared within 90 days of closing. Your CPA can update an existing statement if you're close to that window.
Rates are nearly identical. Both are non-QM products priced similarly. Lender choice and your credit profile matter more than documentation type.
Switching mid-process restarts underwriting. Lock your documentation strategy before applying to avoid delays and potential rate expiration.