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in Cudahy, CA
Self-employed borrowers in Cudahy face a choice: prove income with bank statements or a CPA-prepared P&L. Both are non-QM options that skip tax returns, but they play to different business profiles.
Most Cudahy entrepreneurs — contractors, shop owners, food truck operators — can qualify with either route. The right choice depends on how you run your books and what your deposits look like.
Bank statement loans pull 12 or 24 months of business deposits from your account. Lenders run a calculation to convert those deposits into qualifying income — usually 50% to 75% of average monthly deposits.
This works best if you run steady deposits through one or two accounts. No need for formal financial statements. Most borrowers close with 10-15% down and credit scores above 620.
P&L loans require a CPA-prepared profit and loss statement covering one or two years. Lenders verify the CPA's license and use the net profit shown on the statement as your qualifying income.
This route appeals to borrowers with clean books but irregular deposits. You avoid the bank statement calculation — just show profit on paper. Down payments and credit requirements match bank statement loans.
Bank statements show actual cash flow, not profit. A contractor depositing $20k monthly might qualify on $12k income after lender calculations. P&L loans use the bottom-line profit your CPA reports — no haircut on deposits.
Documentation timelines differ too. Bank statements take a few days to pull from your account. P&L loans need a licensed CPA to prepare statements, which can add weeks if your books aren't current.
Choose bank statements if your deposits are consistent and you don't work with a CPA regularly. Most Cudahy self-employed borrowers go this route — it's faster and simpler when cash flow is clean.
Pick the P&L route if you already maintain formal books with a CPA or if your bank account shows irregular patterns. Also better if you write off heavy expenses but still show solid profit on paper.
Yes, both programs accept personal accounts if that's where business income flows. Lenders just separate business deposits from personal transfers.
Rates are similar — both are non-QM products priced on credit, down payment, and loan size. The CPA fee is your main extra cost with P&L loans.
Most CPAs can compile one in 1-3 weeks if your books are current. You'll need at least 12 months of financial data to show lenders.
Yes, they trace large deposits and flag anything that looks like a loan or transfer. Business revenue needs to be clearly identifiable.
You can, but it resets the clock on documentation review. Pick the stronger option upfront to avoid delays and duplicate underwriting work.