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in Chowchilla, CA
Self-employed borrowers in Chowchilla face a choice between two non-QM income verification methods. Bank statement loans analyze deposits over 12-24 months, while P&L statement loans require a CPA-prepared financial summary.
Most Chowchilla business owners—contractors, farmers, truckers—choose based on how they document income. Your existing bookkeeping system usually determines which path closes faster.
Bank statement loans calculate income from 12-24 months of business or personal bank deposits. Lenders apply a percentage to your average monthly deposits to determine qualifying income.
This works well for Chowchilla contractors and agriculture-related businesses with consistent deposit patterns. You don't need a CPA or formal accounting—just clean bank records showing regular business activity.
Expect higher rates than conventional loans since you're using alternative documentation. Most programs allow LTVs up to 90% with strong credit and reserves.
P&L statement loans require a CPA to prepare a profit and loss statement covering 12-24 months. The underwriter uses your net profit to calculate qualifying income.
This option suits Chowchilla business owners who already maintain formal books for other reasons. If you have a CPA preparing quarterly financials anyway, the P&L route adds no extra work.
Rates typically match bank statement programs. Some lenders accept higher debt ratios with P&L documentation since it provides more financial context than raw deposits.
Bank statement loans analyze cash flow directly—what goes into your accounts. P&L loans focus on profitability after expenses, which can paint a different picture of your income.
The bank statement route costs less upfront since you skip CPA fees. But if your deposits look erratic or include non-income transfers, a P&L gives underwriters cleaner numbers to approve.
Processing time runs similar for both—30 to 45 days typically. Bank statements move faster only if your accounts are straightforward with minimal personal transfers mixed in.
Choose bank statements if you run a simple operation without a CPA. Contractors, small trucking companies, and ag workers with steady deposits qualify easily this way.
Go with P&L if you already file CPA-prepared financials or your bank accounts mix business and personal funds heavily. The cleaner documentation often justifies the added cost.
In Chowchilla's market, most self-employed borrowers start with bank statements since it's faster and cheaper. You can always switch to P&L if the first approach hits income calculation issues.
Yes, lenders combine deposits from multiple business and personal accounts. They exclude non-income transfers like moving money between your own accounts.
No, any licensed CPA can prepare the P&L. Most lenders accept CPAs from anywhere in California or nationwide.
It depends on your specific income picture. P&L may show higher net profit if you have significant deductible expenses not visible in deposits.
Yes, but it restarts underwriting. Better to choose correctly upfront by reviewing your records with your broker first.
Minimum scores run 620-640 for both. Individual lenders set their own overlays, but requirements stay consistent between documentation types.