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in Hidden Hills, CA
Self-employed borrowers in Hidden Hills have two main ways to prove income without W-2s. Bank statement loans use your actual deposits. P&L loans use what your CPA reports on paper.
Both are non-QM products built for entrepreneurs who write off most of their income. The right choice depends on how your business runs and what paperwork you already have.
Bank statement loans analyze 12 to 24 months of business or personal account deposits. Lenders calculate your qualifying income as a percentage of total deposits, usually 50% to 75%.
HousingWire reports that some lenders now let you use crypto holdings as reserves — relevant if you hold digital assets alongside traditional accounts. The process is fast because you already have the statements.
P&L loans require a CPA-prepared profit and loss statement covering at least 12 months. Your accountant must be licensed and willing to sign off on the numbers.
This route works when your deposits look messy but your official financials are clean. You need a relationship with a CPA who understands your business structure.
Bank statement loans are DIY — you pull the records yourself. P&L loans add a middleman who charges $500 to $2,000 for prep work. That cost matters when you're budgeting for closing.
Qualification math differs too. Bank statements multiply deposits by a fixed percentage. P&L loans use bottom-line profit after expenses. If you write off aggressively, P&L might show lower income.
Choose bank statements if your deposits are steady and you don't have a CPA relationship. This works for most solo entrepreneurs and small business owners who keep simple books.
Go with P&L if you run multiple entities, have complex cash flow, or already work with an accountant for tax planning. The extra prep time pays off when your financials tell a cleaner story than raw deposits.
Yes, but it adds 2-4 weeks for CPA prep. Most brokers run both scenarios upfront to avoid delays once you're under contract.
Rates are nearly identical since both are non-QM. Your credit score and down payment matter more than documentation type.
Bank statement loans close quicker because you skip CPA prep. Expect 3-4 weeks versus 5-6 weeks for P&L loans.
Some lenders allow hybrid documentation. This helps when one method alone doesn't show enough income for your target loan amount.
Yes, refi requirements match purchase loans. You'll provide either 12-24 months of statements or a current CPA-prepared P&L.