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in Temple City, CA
Temple City self-employed buyers don't need W-2s to get approved. Bank statement and P&L loans both verify income without traditional payroll documentation.
The difference comes down to how you document earnings. Bank statements show actual deposits. P&L statements show business profitability on paper.
Bank statement loans analyze 12 to 24 months of business or personal account deposits. Lenders calculate your qualifying income based on average monthly deposits minus a standard expense ratio.
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Most lenders use a 50% expense factor for personal accounts and 25-50% for business accounts. You need consistent deposits and at least 10% down in Temple City.
P&L statement loans require a CPA-prepared profit and loss document covering 12-24 months of business operations. Lenders use net profit to calculate qualifying income.
This option works when your business shows strong profitability on paper. You need a licensed CPA to prepare and sign the P&L statement.
Minimum credit scores run 640-680 depending on the lender. Down payment requirements start at 10% in Los Angeles County.
Bank statement loans look at cash flow. P&L loans look at reported profit. If you write off most earnings, bank statements show higher qualifying income.
P&L loans require a CPA relationship and formal business accounting. Bank statements just need account access and consistent deposits.
Rates on bank statement programs typically run 0.25-0.75% higher than P&L loans. Lenders view deposit-only verification as slightly riskier than CPA-prepared financials.
Choose bank statements if you aggressively write off business expenses or lack formal accounting. This path works for contractors, consultants, and small operators who reinvest earnings.
Choose P&L if you already have a CPA and show strong net profit. This route delivers better rates when your books reflect solid bottom-line income.
Temple City buyers with irregular deposits should lean toward P&L statements. Consistent cash flow favors bank statement analysis.
Yes, but lenders apply a higher expense ratio to personal accounts. Business accounts get better income calculations.
Most lenders want at least two years in business. Some accept one year if you have prior industry experience.
P&L statement loans typically price 0.25-0.75% lower. CPA-verified income carries less risk than deposit analysis alone.
Yes, but you'll restart underwriting. Choose your documentation path before starting the application to avoid delays.
Yes. Both support rate-term and cash-out refinance for Temple City investment and primary properties.