Loading
in Vernon, CA
Vernon sits as LA County's industrial core, home to business owners who need mortgage options built for self-employed income. Traditional lenders reject tax returns that show aggressive write-offs.
Both bank statement and P&L loans solve this problem differently. Your choice depends on how you document income and how much your CPA charges.
Bank statement loans use 12 or 24 months of business or personal bank deposits to calculate income. Lenders typically count 50% of deposits as qualifying income, though some use different percentages.
You avoid CPA fees and the wait for financial statement preparation. Most borrowers need 10-20% down, and rates run 1-2% above conventional. Credit scores start at 620, though 680+ gets better pricing.
P&L loans require a CPA-prepared profit and loss statement, usually covering 12-24 months. Your accountant must be licensed and third-party verified, which adds time and cost to the process.
These loans work well if you already maintain detailed financials or have a CPA on retainer. Down payments start at 10-20%, with rates similar to bank statement programs. Some lenders require a business tax return alongside the P&L.
Bank statement loans pull directly from your deposits with no middleman. P&L loans require paying a CPA to prepare statements, which can run $500-2,000 depending on complexity. If you don't already work with an accountant, that's extra time and money.
Income calculation differs significantly. Bank statements use a flat percentage of deposits, while P&L loans show actual profit after expenses. If your business runs high revenue but thin margins, the P&L might show less qualifying income than deposits would.
Choose bank statements if you want speed and simplicity. You avoid CPA costs and get approved based on what actually hits your account. This works best for businesses with healthy deposit patterns and minimal commingling of personal funds.
Go with P&L if you already maintain prepared financials or your business structure requires it. Some lenders prefer P&L for larger loan amounts or complex business entities. Either way, rates and terms end up similar—your choice comes down to documentation convenience.
Yes, if business income flows through personal accounts. Most lenders accept personal statements for sole proprietors and single-member LLCs showing business deposits.
Expect 1-3 weeks depending on your accountant's workload. Bank statement loans skip this step entirely, which speeds up the timeline by several weeks.
No tax returns needed for income calculation. Some lenders want to see returns filed but won't use them to qualify your income.
Bank statements often show more income if you run high revenue. P&L shows actual profit, which may be lower after business expenses get deducted.
Yes, though it restarts documentation review. Most borrowers know which route fits before applying based on what records they maintain.