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in Claremont, CA
Both options help self-employed borrowers in Claremont qualify without tax returns. The difference is what you show and how fast you can close.
Bank statement loans pull deposits straight from your accounts. P&L loans use a CPA's summary of your business income. Most borrowers prefer one over the other once they see what paperwork is needed.
Bank statement loans use 12 to 24 months of business or personal account deposits. Lenders calculate your monthly income by averaging total deposits and applying expense ratios.
You don't need a CPA. Just provide statements showing consistent deposits. This works well if your business runs through one or two accounts and you don't write off every expense.
P&L loans require a CPA-prepared profit and loss statement covering at least 12 months. The CPA must be licensed and provide their credentials with the document.
This route works if you already have clean books and a CPA relationship. Lenders treat the P&L income as qualifying income without digging into every deposit.
Bank statement loans skip the CPA entirely but require transparent deposit history. P&L loans need professional accounting but let you present income your way.
Rates vary by borrower profile and market conditions. Both typically require 10-20% down and 660+ credit. The real difference is whether you have clean statements or a CPA on retainer.
Choose bank statements if you run a simple business with clear deposit patterns and no CPA. Choose P&L if you already work with an accountant or have multiple income streams that look messy on statements.
Most Claremont self-employed borrowers go bank statement route for speed. P&L makes sense for established businesses with formal accounting or when deposits don't tell the full story.
Yes, many lenders accept personal statements if your business income runs through them. Some accept a mix of both.
No, any licensed CPA works. They just need to provide credentials and sign the P&L statement.
Rates are similar between the two. Your credit score and down payment affect pricing more than documentation type.
Yes, but it restarts underwriting. Choose your documentation path before starting the application.
Absolutely. Both handle 1099 income without W-2 paystubs or employer verification.