Loading
in Irwindale, CA
Self-employed borrowers in Irwindale have two main paths to prove income without tax returns. Bank statement loans use your actual deposits. P&L loans rely on CPA-prepared financials.
Both are non-QM products designed for business owners who write off too much to qualify conventionally. The right choice depends on how you run your books and what documentation you already have.
Bank statement loans calculate income from 12 or 24 months of business or personal account deposits. Lenders apply expense ratios between 25% and 50% depending on your industry. No CPA required.
This works well for cash-heavy businesses or contractors who cycle money through accounts regularly. You need consistent monthly deposits without major gaps or one-time influxes that skew the average.
P&L statement loans use a CPA-prepared profit and loss report to document business income. The CPA must be licensed and typically needs a two-year relationship with your business. This shows net profit after expenses.
Works best for established businesses with clean books and existing CPA relationships. Underwriters treat the P&L income as your qualifying basis, often with less aggressive discounting than bank statements see.
Bank statements show raw cash flow but get hit with expense ratios. P&L statements show profit after expenses but require a licensed CPA. Bank statement loans approve faster since you likely have the docs already.
P&L loans usually deliver higher qualifying income if your books are tight and expenses well-documented. Bank statement loans win when you don't have a CPA relationship or your P&L shows minimal profit due to heavy reinvestment.
Choose bank statements if you operate on cash flow, lack a CPA, or need to close quickly. This route works for newer businesses or sole proprietors without formal accounting. Expect 25-50% expense deductions from gross deposits.
Go P&L if you have an established CPA relationship and your business shows strong net profit. This typically qualifies you for more home than bank statements would. Just plan 60-90 days for the CPA to prepare and certify the statement.
No. Lenders pick one income documentation method per loan. You'll get better terms focusing on whichever shows stronger qualifying income.
Lenders multiply your average monthly deposits by 50-75% to estimate net income. The percentage depends on your industry and business type.
No. Any California-licensed CPA works. They just need a documented two-year relationship with your business and clean standing.
Rates are nearly identical since both are non-QM products. Your credit score and down payment matter more than documentation type.
Yes, but it restarts underwriting. Choose your documentation route before applying to avoid delays and re-verification.