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in Bradbury, CA
Self-employed borrowers in Bradbury have two main paths to mortgage approval without tax returns. Bank statement loans use 12-24 months of deposits to calculate income. P&L loans rely on a CPA-prepared profit and loss statement instead.
Both are non-QM options designed for business owners and contractors who write off significant expenses. The right choice depends on how you document income and what's easiest to provide. Neither requires traditional W-2s or full tax returns.
Bank statement loans use deposit history to prove you earn enough to cover the mortgage. Lenders review 12 or 24 months of personal or business account statements. They calculate your average monthly income from those deposits.
This works well if you have consistent deposits but heavy tax write-offs. You don't need a CPA letter or formal financials. Most programs accept either personal or business accounts. Credit minimums typically start at 620, though some lenders require 660 or higher.
P&L statement loans use a CPA-prepared profit and loss document covering 12-24 months. Your accountant must be licensed and willing to sign off on your income. Lenders verify the CPA's credentials and may request additional documentation.
This route makes sense if you already work with a CPA who tracks your business income. The P&L shows net profit after expenses, which becomes your qualifying income. You'll need a business license and proof your CPA relationship predates the loan application.
The core difference is documentation method. Bank statement loans need raw account data you already have. P&L loans require a formal statement from a licensed CPA. Bank statement programs tend to move faster since there's no CPA coordination involved.
Both programs carry similar rates and down payment requirements. The bigger split is preparation: bank statements just need organizing, while P&L documents require professional accounting work. If you don't already pay a CPA, bank statements usually cost less to prepare.
Choose bank statement loans if you have clean deposit history and want to avoid CPA costs. This works for contractors, real estate agents, or business owners who don't maintain formal books. You control the timeline since you already have the statements.
Go with P&L loans if you already work with a CPA who knows your business inside out. This route works better for established businesses with formal accounting. It also helps if your bank statements are messy or show irregular deposits that might confuse underwriters.
No, you pick one income documentation method per loan. Some lenders let you supplement with additional docs, but the primary qualification uses either bank statements or P&L, not both.
Rates are typically the same for both programs since they're both non-QM. Your credit score and down payment affect pricing more than which documentation method you choose.
Most programs want two years, but some lenders accept 12 months if your income is strong and stable. One year of business operation is usually the minimum for either option.
Then bank statement loans become your only self-employed option. CPAs sometimes decline to sign if they're uncomfortable vouching for the income or haven't tracked it closely enough.
Yes, most bank statement programs let you use either or both. Lenders look at total deposit activity. Just make sure you can explain what each deposit represents during underwriting.