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in San Marino, CA
San Marino's self-employed buyers have two main paths to prove income without tax returns. Both work for business owners who write off significant expenses.
The difference comes down to documentation style and how much income you can show. Your business structure and bookkeeping setup determine which route works best.
Bank statement loans analyze 12 to 24 months of deposits to calculate your income. Lenders apply a percentage to total deposits after filtering out transfers and non-income items.
This works well if you have strong cash flow but your tax returns show minimal profit. No CPA needed—just provide personal or business bank statements showing consistent deposits.
P&L loans use a CPA-prepared profit and loss statement to document your income. The CPA must sign off on the numbers and provide a license verification.
This route captures business income more formally than bank statements. Works best if you already maintain detailed books and have a CPA relationship.
Bank statements are faster and simpler—no CPA coordination needed. P&L loans require professional prep but can show higher qualifying income if your books are clean.
Rates vary by borrower profile and market conditions. Both typically price similarly, though bank statement loans sometimes offer more flexibility on income calculation methods.
Choose bank statements if you want speed and don't have a CPA relationship. Pick P&L if you already maintain detailed books and your profit margins look strong on paper.
Many San Marino business owners default to bank statements first. It's simpler documentation and most self-employed borrowers already have the statements on hand.
You pick one method per loan. Lenders won't combine both income calculations, though some might review both to choose the stronger option.
Depends on your business. Bank statements work better for high-deposit businesses. P&L works better if your margins are strong but deposits include non-income transfers.
No. Bank statement loans skip the CPA requirement entirely. You just provide statements showing regular deposits over 12-24 months.
Bank statements close faster—usually 3-4 weeks. P&L loans add time for CPA coordination, often 4-6 weeks total.
Yes, both programs go up to $3-4 million+ for well-qualified borrowers. Income calculation matters more than loan type for high-balance approvals.