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in San Fernando, CA
San Fernando's self-employed borrowers face a choice: prove income with bank statements or with a CPA-prepared P&L. Both are non-QM loans that skip tax returns, but they pull income differently.
Most contractors and gig workers prefer bank statements because they avoid CPA costs. Business owners with clean books often choose P&L loans for higher qualifying income and cleaner underwriting.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders apply an expense factor—usually 25% to 50%—to estimate your net income from gross deposits.
You don't need a CPA or formal financial statements. Just provide bank statements showing consistent deposits. This works well if you write off most of your income or run cash-heavy businesses.
P&L loans require a CPA-prepared profit and loss statement covering 12 to 24 months. Lenders use the bottom-line net income figure directly, often resulting in higher qualifying income than bank statements.
You need a licensed CPA to prepare and sign the P&L. This adds upfront cost but gives underwriters a cleaner income picture if your books are organized and your margins are strong.
Bank statement loans look at gross cash flow and apply a blanket expense deduction. P&L loans use actual reported profit, which can be higher or lower depending on your expense structure.
Bank statements cost less to prepare but may qualify you for less income. P&L loans cost more upfront due to CPA fees but often yield better debt-to-income ratios for borrowers with organized financials.
Choose bank statements if you're a contractor, freelancer, or small operator without a CPA relationship. They're faster, cheaper, and don't require formal accounting. Choose P&L if you already work with a CPA and your profit margins exceed 50%.
Run both scenarios before deciding. We pull income calculations for each option and compare them against San Fernando purchase prices. Often one path gives you 20% more buying power.
Yes. Most lenders accept personal bank statements if they show business income deposits. Business accounts usually qualify you for higher income.
No. P&L loans skip tax returns entirely. The CPA-prepared P&L replaces tax documentation for income verification.
Rates are similar for both programs. Your credit score and down payment affect pricing more than which income doc you use.
Expect $500 to $1,500 depending on complexity. Factor this into your decision if you don't already have a CPA relationship.
Yes. We often test both calculations early to see which qualifies you for more. Switching adds time but may increase your buying power.