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in Gardena, CA
Both bank statement and P&L loans help self-employed borrowers in Gardena qualify without tax returns. The main difference is documentation: one uses your actual deposits, the other needs a CPA.
Neither option requires two years of filed tax returns like conventional loans. That matters if you write off everything and show minimal taxable income.
Bank statement loans analyze 12 to 24 months of business or personal account deposits. Lenders calculate your average monthly income from the statements directly.
You don't need a CPA or formal financial statements. Most lenders apply a 50% expense ratio to your deposits to estimate qualifying income. Some use actual expenses if you provide documentation.
P&L statement loans require a CPA-prepared profit and loss statement covering 12 to 24 months. The CPA must be licensed and independent—your brother-in-law won't cut it.
Lenders use the net income shown on your P&L to calculate qualifying income. You'll also need a balance sheet and a CPA certification letter confirming the documents.
Bank statement loans are faster and simpler if you don't already work with a CPA. P&L loans often allow higher qualifying income because you're not stuck with a 50% expense assumption.
Rates and terms are similar across both programs. The real difference is whether paying a CPA to prepare statements gets you more buying power than the bank statement calculation provides.
Go with bank statements if you have clean deposit history and want to close quickly. Choose P&L if your actual profit margins are better than 50% and you're willing to pay for CPA prep.
For Gardena borrowers with multiple income streams or inconsistent deposits, P&L loans often paint a clearer picture. Bank statements work better for straightforward businesses with steady monthly deposits.
No. Lenders pick one income verification method. You can't mix documentation types on a single application.
Rates are nearly identical. Your credit score, down payment, and property type matter more than which documentation method you choose.
No. Personal accounts work if all your business income runs through them. Business accounts are cleaner but not required.
Expect $500-$1,500 depending on business complexity. Factor this into your decision if you don't already have statements prepared.
Yes. If bank statements don't show enough income, we can pivot to P&L statements. Just adds time for CPA preparation.